The February 9, 2007, issue of the Wall Street Journal contains an article by Neal E. Boudette
Question:
The February 9, 2007, issue of the Wall Street Journal contains an article by Neal E. Boudette titled “Lots of Vehicles: Big Dealer to Detroit: Fix How You Make Cars.”
Instructions
Read the article and answer the following questions.
(a) Explain what the article identifies as the biggest problem with U.S. auto manufacturers.
How does the article’s author think they can solve the problem?
(b) At the time of the article, Toyota had 15.4% of the U.S. market and General Motors (GM) had 24.6%. How did the total inventory of the two companies compare? How did the inventory per 1% of market share compare? What are some possible implications of this difference?
(c) How did days in inventory of AutoNation’s Toyota and Honda stores compare to its GM, Ford, and Chrysler stores at the time of the article?
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...
Step by Step Answer:
a He says that they make too many cars with features that very few people want As a result these car...View the full answer
Financial Accounting Tools for Business Decision Making
ISBN: 978-0470239803
5th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
