Last night I popped by my parents’ house for dinner. The discussion, as usual, drew itself over to current events and how the economic struggles are impacting everything, especially the automotive industry. Car companies are struggling to keep factories open and to keep dealerships in business, so it’s tough times for everyone. My dad commented on some things that he had heard from a friend of his and how the industry is gripped in a sort of mass panic.
It certainly doesn’t seem like a good time to be in the automotive industry.
Yet some companies are handling the struggles better than others, I guess. Toyota, Honda, Nissan, and Hyundai all seem to be able to open up new factories despite the turmoil. And GM, Ford, and Chrysler are struggling to roll out new plans that may have customers thinking twice about domestic American cars. But is that really what is needed from the Detroit Three? They’re banking on a bailout, it seems, and may face collapse if something doesn’t happen soon.
GM, especially, seems locked in a fight to survive the times. With another factory facing cuts in Canada in Oshawa, Ontario, it seems like there’s no end in sight. GM is banking a lot on the Chevy Volt, which is coming in a couple of years, and will need every ounce of its resources to survive these tough times. How that will impact sales of Chevy cars and trucks in the long-term remains to be seen, as does any news about this bailout.
One thing’s for sure, though. GM is going to keep fighting.
