Big Three (automobile manufacturers)

In the United States of America's automotive industry, the term Big Three refers to the three major American automotive companies: General Motors, Ford, and Chrysler (FCA US).Germany's Big Three are Volkswagen, Mercedes-Benz and BMW.Japan's Big Three are Toyota, Nissan, and Honda.

General Motors, Ford Motor Company, and Fiat Chrysler Automobiles US are often referred to as the "Big Three," being the largest automakers in the United States and Canada. They were for a while the largest in the world and two of them are still a mainstay in the top five. The Big Three are also distinguished not just by their size and geography, but also by their business model. All three have their headquarters in the Detroit area. The majority of their operations are unionized with the United Auto Workers and Canadian Auto Workers.

Ford has held the position of second-ranked automaker for the past 56 years, being relegated to third in North American sales, after being overtaken by Toyota in 2007. That year, Toyota produced more vehicles than GM, though GM still outsold Toyota that year, giving GM 77 consecutive calendar years of top sales. For the first quarter of 2008, however, Toyota overtook GM in sales as well. In the North American market, the Detroit automakers retained the top three spots, though their market share is dwindling. Honda passed Chrysler for the fourth spot in 2008 US sales. Since then, because of Toyota's controversy surrounding their recent unintended acceleration recall, Toyota has fallen back to fourth place in sales, with Honda trailing in fifth place, allowing the Detroit Three to reclaim their Big Three title.

Union labor can result in higher labor costs than other multinational automakers, including those with plants in North America. The 2005 Harbour Report estimated that Toyota's lead in labour productivity amounted to a cost advantage of $350 US to $500 US per vehicle over American manufacturers. The UAW agreed to a two-tier wage in recent 2007 negotiations, something which the CAW has so far refused.Delphi, which was spun off from GM in 1999, filed for Chapter 11 bankruptcy after the UAW refused to cut their wages and GM is expected to be liable for a $7 billion shortfall.

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