Can US Automakers Get Their Act Together?
Posted in General Interest on 02/19/2010 10:41 am by EditorAs we all know by now, over the last twenty years, the major players in the American vehicle manufacturing sector have seen a large decrease in sales and buyer confidence. Among other tactics the big American auto makers – GM, Chrysler and Ford – got heavy into outsourcing of materials and labor. These practices became common place and as a result lesser quality products being offered on the auto market became more common.
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With the credit collapse of the last couple of years, prospective consumers found it difficult to obtain the crucial financing needed to be able to purchase new vehicles. The American automakers were the big losers.
Facing the danger of a total collapse, American auto makers realized that downsizing their operations would be necessary to allow their stake in the American and foreign markets to stay viable.
As a result of this and other stimulus measures, the remaining new car outlets have seen an influx of business over the last number of months. The big three automakers located in the United States and Canada have begun to re-group and part of that is a renewed focus on what the average American consumer looks for when considering a new car purchase. Newer technologies, such as Hybrid engines and fuel alternatives, have emerged on the car sales market as a result.
Sales figures in mid 2009 were down across all auto manufacturers, however, with the short lived cash for clunkers government run incentive, many dealerships across the country saw an uptake in sales for a short while. While General Motors has struggled greatly with turning a profit, the Ford Motor Company has done better than expected.
While GM’s profits are still slightly in the dumps, many consider Chrysler to be in the worst shape among the big three. However, with major restructuring and by following the lead of GM, there is a chance that Chrysler can also pull out of the recession a reborn and more efficient operation.