Investing

Toyota Brings the Caskets to the Big Three (TM, GM, F, DCX)

Toyota’s (TM-NYSE) strength in US market share is probably only getting bigger and bigger from here on out.  They aren’t perfect and they will probably have some stumbles along the way, but they are scaring the you know what out of the Big Three.

On tonight’s MAD MONEY on CNBC, Jim Cramer said he’s tired of the Big Three.  There is a beneficiary of the DaimlerChrysler (DCX-NYSE) and it is not GM (GM-NYSE) or Ford (F-NYSE) since they are only trying to shrink to profits: it is Toyota Motors (TM-NYSE).  That is going to make Toyota the last growth engine. If you will remember this stock was Cramer’s #1 Foreign Stock For 2007 according to Cramer. 

I sometimes argue with Cramer and sometimes back him.  The truth is that Toyota is the true winner.  It has fallen $16.00 in three months and about the only thing scary about Toyota’s stock right now is that the chart looks like it is going to trade like a drunkard until a new trend is more clear. 

Today I heard a local radio commercial from a GM dealership mention accusations naming Toyota as not really being the better auto maker because of the last recall I thought that this was a sheer sign that Toyota hasn’t just been eating its lunch.  GM dealers must be worried this will only get worse and that they have to do whatever they can to scare car buyers away from Toyota.  Toyota is scaring the hell out out of GM, that’s obvious. 

You won’t like what is going to be said if you work for or are related to a UAW member, but this is solely from the investment and economic outlook on what is obvious.  If things continue the way they have been going and if they go the way it looks, then the "Big 3 Monthly Auto Numbers" will soon be reported differently.  The risk is that the new monthly auto numbers will probably be reported at "The Big Red One and The Three Little Pigs."

Jon C. Ogg
May 16, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.

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