Toyota Outearns Detroit Car Companies Combined!

[AR2]

I just saw this article and I had to post it. The headline alone made my jaw drop.

http://www.forbes.com/sites/michelin...kers-combined/

There are a few things that I noticed while reading this article.

1) As usual, Detroit started celebrating too soon when Toyota fell on hard times last year (i.e. the tsunami, quality problems, etc...). It appears Toyota is back and stronger than ever. This can't make the Detroit CEOs too happy.

2) Toyota is making big earnings now - and it has just started re-inventing its lineup. The new Camry just debuted and the new, sexier Avalon is right around the corner. Then there are the new hybrids and a new Corrolla coming out next year that is supposed to be a radical departure from the current, boring model. On top of this, Lexus is reloading with new, sportier models. As long as quality stays at the top, I can't see any reason for customers to walk away from this company. This latest quarterly earning may just be the tip of the iceberg.

3) Chrysler earned $436 Million (not Billion as the article stated). While that is better than losing money, it really isn't that much of a profit. GM made 3 times that amount in the 2nd quarter and it is not even half of what Ford made. With sales up 20, 30, sometimes 40%, and market share growing, one would think Chrysler would be earning a heck of a lot more. So, what is cutting into Chrysler's earnings? I wouldn't think Europe would be a negative since Chrysler is all but out of the European market. I have to wonder if the high incentives and high fleet sales that are contributing to increased sales is cutting into profits. What will happen when auto sales slow again straining profitability?