WSJ SAYS SYANORA TO THE FORMERLY BIG THREE

A story in the WSJ purports that the era of the Big Three automakers is ending. After 60 years of dominance in North America, General Motors Corp., Ford Motor Co. and Chrysler Group are seeing their collective market share steadily erode, with little hope that they can reverse the trend.

They went on to say that “the main cause of this development -- foreshadowed in 1998 by Chrysler's decision to abandon its independence and become part of German auto giant DaimlerChrysler AG -- is the vast and successful investment by foreign rivals in new North American factories and vehicles. Equally important, European and Asian manufacturers are making cars that many American consumers prefer, based on quality and technological sophistication.”

Another reason for this lack of competitiveness is that “the Japanese gain a further advantage because their factories tend to run more efficiently. And the strong dollar has accelerated the market shift by making foreign models effectively less expensive for American buyers.

The once-unquestioned titans of Detroit remain major global competitors. Jarred from the complacency bred by record profits in the late 1990s, they all have shaken up their top managements recently and vow to battle back with renewed vigor. But as competition in the auto market has become truly international, it is highly unlikely that GM, Ford and Chrysler will ever regain the dominance that once allowed them to dictate which vehicles Americans bought and at what prices.

Forced to reshape themselves into smaller companies, GM, Ford and Chrysler will collaborate more extensively with Japanese and European rivals and simultaneously try to shed more of their own employees.

At the retail level, major dealer networks have acknowledged the new order by pushing foreign brands more aggressively. That tactic only hastens the Americans' decline.”