Friday, August 18, 2006

Middle East Conflict Fueling Detroit's Decline?


Crude Logic --

Former number two automaker Ford needs a good reason to announce its cutting another 20% of production. How about the price of gasoline -- fueled by all the administration's warmongering over in the Middle East? There's a "continued consumer shift away from trucks... amid lofty gasoline prices," according to a MarketWatch article.

But Toyota sales are up almost 12% and Honda up about 6% in July. That includes trucks -- Honda trucks are up more than its overall sales at 6.8%.

Fleet fuel economy (more than fuel prices) may be part of the reason, but CR Online is another. While Chevy touts the "best resale value of any domestic-made trucks" in its own commercials, Toyota has the claim to best resale value anywhere in the opinions of Consumer Reports and other third-party evaluators.

The increasing prevalence of the savvy consumer is dangerous to businesses whose margins have been based in blind loyalty and barriers to information access. Real-estate agents, doctors, lawyers and automakers -- Web 2.0 changes some of the rules you've been banking on.