Chrysler: What is Up With the US Automakers Lately?

Automotive Guide What is Up With the US Automakers Lately?

By: Lance Winslow

Automotive Guide

Many are wondering what in the World is up with the US Automakers lately? We see things kind of falling apart don’t we? We see GM and Ford laying off some 60,000 Union workers and renegotiating their under funded pension contributions. Why are Japanese Automakers screaming past US Automakers in market share?

Regarding General Motors, that is a free market issue and they will have to innovate, adapt and compete in the World Free Market to remain at the profitability that their shareholders desire or face the music. That is what free markets do. Indeed in GMs case they have forgotten the Deming Years. Some say that they will need to move forward with the SmartCars and all the trimmings to keep the interest of the consumer.

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And high gas usage SUVs are going to be a tough sell in 2006 with anticipate price spikes, Chicago-Land commodity games, showdown in Iran, Nigeria supply problems, issues with Venezuela, 2006 Hurricane Season, China and India coming online as big users and supply issues, but the SUVs are the most profitable units and therefore with incentives and such they will sell them. Ford is going a different approach. Daimler Chrysler is going to try some incentives and a head on spar with both Honda and Toyota so we shall see;

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We will soon see if the UA Automakers can turn this thing around in 2006, some say not and that it may take years to regain market share even with huge discounting. It is safe to say that high oil prices will be an issue with GM and the SUVs and Ford will need to seriously ramp up to keep up with their market share goals. If these issues concern you as much as they concern me, then let’s talk. Think on this in 2006.

Lance Winslow - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs/

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