Tommy Chen's Blog

Detroit is not only behind in fuel economy

http://online.wsj.com/article/SB10001424052748703859204575525963701140270.html?mod=rss_whats_news_us_business

Front Stage?

The government-owned automaker General Motors Co. has just announced its fuel economy development goal up to 2025 for its SUV.  Their most aggressive approach would push the fuel economy target to 62 miles a gallon (MPG), which is highly encouraged by environmentalists and Mr. Obama.

Can GM reach its goal in 2025? With an additional cost between $2,800 and $3,500 to a vehicle, GM can even reach its goal next year. Toyota, one of GM’s biggest competitors, has the prius model which gives a MPG of 51 and costs way less than GM’s future 62 MPG SUV.

http://online.wsj.com/article/SB10001424052748703882404575519773455335584.html?KEYWORDS=Toyota

Back Stage.

While GM still worries about its fuel economy, Tata Nano’s has already come up with a plan to invade Northern America’s automobile market.  Again, Toyota finds its way to save its market share from future Nano’s invasion – trying out minicars with Japan’s largest minivehicle seller on its biggest market.

GM is not only fallen behind in fuel economy, but everything. As one of Detroit’s leaders, GM should start to question itself why this happen. In my opinion, one thing that determine the difference between GM and Toyota is system.