Automotive Business

Archive for the ‘Automotive Industry’ Category

The U.S. auto industry is strongly influenced by the economy. There is no doubt that Detroit is essentially “reset”. However, the government bailout aside, the question remains, what the automobile industry must do to survive?

While the government bailout plan has been criticized by many people, some of them, Detroit’s economy has been built and people can not understand. What should be noted that this crisis has been years in the making. Since the year 1970 in Detroit, which aims to push the big cars. Even during the 1980s, when automakers like Toyota and Honda have been on the U.S. market because of high fuel prices dominate, Ford, Chrysler and GM “boats” that look great, but can not never compete with fuel capacity abroad to grow.

But Americans love their big cars. The year 1990 was the explosion of SUVs and suddenly all the suburban soccer moms need a vehicle for urban assault to get Jennie to the practice of ballet. Cars, trucks and SUVs have become bigger and bigger, and suddenly, the Americans broke.

The economy of Detroit, Michigan but was built on the auto industry and the state is bleeding now, financially, economically and politically because of the crash of the automotive industry. Although many people give a simple, “Just start making smaller cars,” not really go against reality. Why? Because for 30 years, the Big 3 has done nothing but build factories and equipment for the production of big cars and trucks, and technology to simply “pass these plants is not there. Well, he would be there, but there is no money to do so because Americans are not buying cars and automakers now with Sky High expenditure on wages for workers, health care and the profitability, sales and marketing.