The American Auto Industry Could Be On Its Last Legs

Two of America’s biggest auto manufacturers have been told in no uncertain terms that they must make massive structural changes in the way they do business if they are to continue receiving government support. General Motors and Chrysler, which together employ millions of Americans, are both in severe financial trouble and have had to come to Washington for loans in order to stay afloat. Considered “too big to fail,” these companies have received billions of dollars in government support while they come up with plans to restructure themselves into solvency and profitability. On Monday, March 30, President Barack Obama informed GM and Chrysler that their restructuring plans were inadequate, and that they had 60 days and 30 days, respectively, to come up with new plans or face the loss of federal support, which would effectively force them into bankruptcy. In a related move that surprised many with its suddenness, President Obama also insisted that GM CEO Rick Wagoner step down.

Big 3 in Decline for Years

Many analysts believe that the American auto industry has been in decline for years, and all its inefficiencies and lack of creative vision have finally caught up to the manufacturers. The Big Three – GM, Ford and Chrysler – have all reported drops in automobile sales that are so steep and so severe that they won’t be able to survive without government intervention.

Why the American Auto Manufacturing Failed

Is it the long-held view that American cars are inferior in quality to their foreign equivalents? Have auto union workers demanded too much, and saddled their employers with unsustainable costs? Is the overall management mentality in Detroit archaic, uncreative, backward-thinking, and just not cutting-edge enough? Or is the economic crisis so severe that people are either unwilling to buy new cars, or unable to do so even if they wanted to, now that there is practically no credit anywhere? A forensic analysis of what killed the American automobile industry – if it does indeed die – won’t be possible for a few years to come, of course, but the culprit could be one or all of the oft-heard complaints listed above.

Best Auto Deals Ever

If find yourself in a position of personal liquidity, in contrast to Detroit, now would be the best time to purchase a vehicle. Dealerships across the nation are offering unprecedented discounts, assurances, incentives, and auto financing options for qualified buyers. The government has also offered tax incentives for new car buyers, including hybrids, in order to spur new car sales. There are deals to be had across all makes and models, including luxury makes and exotics.

Are you looking to purchase a car soon? How has the dealership experience been for you?