Ford, GM, Chrysler need more than cosmetic surgery!
October 16th 2008 13:42
As a rule AUTOLOUD does not normally discuss politics or financial markets. In the last couple of weeks we have world stock markets on a roller coaster ride and even the experts are looking grim and shaking their collective heads. The world economic situation is bordering on implosion and there will be repercussions within the motor industry, in fact they have already started!
Factories world wide are shedding staff and production numbers in an effort to shore up their businesses. Dealerships are closing their doors all over the USA, in fact the largest Chevy dealer (by volume) just shut the doors owing somewhere around the $ 250 million!
You may recall Rover being referred to as the English patient some years ago, well the USA motor industry is beginning to look like a whole Emergency Room!
Ford has been on life support for some time; their number one seller was the F series truck, the sales of which have collapsed. They already shed Jaguar and Land Rover and now the whispers are rife about a possible sale of Volvo and partial sale of Mazda to raise cash.
Sounds good, but who will spend the necessary money now?
The wildest rumour is that GM and Chrysler are to sit down to discuss a possible merger. That’s right GM and Chrysler in a merger, who has what to gain in that arrangement? GM is doing their best to rush their European product (Opel Astra, Insignia) to market in the US but they will struggle against the Japanese and Korean competition. They did show a couple of exciting (for GM) concepts at the Paris Motor show, but they are the type of car that GM should have had several years ago. The Volt is a good idea but it is too far away time-wise. Out of politeness I will not mention HUMMER!
Chrysler is in all sorts of trouble, with the collapse of Jeep sales hurting them badly and the loss of the Mercedes Benz partnership which left them vulnerable to hostile takeover. Sure, some of the products they have are innovative, but the quality lets them done. Every time I sit in them they remind me of Korean and Russian cars from 15 years ago.
Chapter 11 (American speak for protection from bankruptcy) is not far away for these guys and this may even be a smart move in some ways. Chapter 11 means you can continue to trade while you restructure your business. Sounds like a perfect opportunity to build an all American lean mean Automotive fighting machine. However, there will be a mass of casualties, both human and business.
Only emergency surgery can save these patients, the only question is who is brave enough to go under the knife first?
Factories world wide are shedding staff and production numbers in an effort to shore up their businesses. Dealerships are closing their doors all over the USA, in fact the largest Chevy dealer (by volume) just shut the doors owing somewhere around the $ 250 million!
You may recall Rover being referred to as the English patient some years ago, well the USA motor industry is beginning to look like a whole Emergency Room!
Ford has been on life support for some time; their number one seller was the F series truck, the sales of which have collapsed. They already shed Jaguar and Land Rover and now the whispers are rife about a possible sale of Volvo and partial sale of Mazda to raise cash.
Sounds good, but who will spend the necessary money now?
The wildest rumour is that GM and Chrysler are to sit down to discuss a possible merger. That’s right GM and Chrysler in a merger, who has what to gain in that arrangement? GM is doing their best to rush their European product (Opel Astra, Insignia) to market in the US but they will struggle against the Japanese and Korean competition. They did show a couple of exciting (for GM) concepts at the Paris Motor show, but they are the type of car that GM should have had several years ago. The Volt is a good idea but it is too far away time-wise. Out of politeness I will not mention HUMMER!
Chrysler is in all sorts of trouble, with the collapse of Jeep sales hurting them badly and the loss of the Mercedes Benz partnership which left them vulnerable to hostile takeover. Sure, some of the products they have are innovative, but the quality lets them done. Every time I sit in them they remind me of Korean and Russian cars from 15 years ago.
Chapter 11 (American speak for protection from bankruptcy) is not far away for these guys and this may even be a smart move in some ways. Chapter 11 means you can continue to trade while you restructure your business. Sounds like a perfect opportunity to build an all American lean mean Automotive fighting machine. However, there will be a mass of casualties, both human and business.
Only emergency surgery can save these patients, the only question is who is brave enough to go under the knife first?
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