Will there be a US motor industry after 2006?
The year 2005 for the US motor industry was not very good.
Last year will go down in US automotive history as one of the
most dreadful periods ever.
Things are not quite as bad as it seems.
In fact the US automotive industry is still thriving.
Car sales are still growing strongly.
There are some manufacturers whose business is still good despite the occasional slump.
Unfortunately, two of the country’s largest car manufacturer are not having the best of times.
The Ford Motor Company and General Motors are currently in the middle of a big and painful reorganization.
They are further crippled by a share in the local US market that seems to be shrinking,
profits that are declining,
but paying high salaries and extremely generous benefits to their current and previous employees.
Add to these two companies current woes,
a number of car manufacturers from Asia seems intent to establish a niche in the US market.
Most of these Asian car makers are already well known.
Many Americans even prefer such Asian made cars than the US manufactured ones.
It is safe to say, though painful to hear,
that American car manufacturers are currently facing a difficult market,
especially now that companies are coming in from outside
and giving established US car makers such as Ford and GM a run for their money.
This fact may be enough to cause worry among US car makers since these foreign manufacturers
are offering good products at reasonable prices.
Another addition to US car manufacturers woes
is the rise of the cheaper electric-gas hybrid car.
In addition America’s cooled relationship with the SUV, or the sports utility vehicle.
Another problem is that the US auto industry
has not been able to bring out new and exciting car products and features,
that consumers would actually want to have and eventually purchase.
GM has made a move though.
It hopes that the new line of vehicles it is coming up with
will excite America’s car-loving culture.
The new vehicles, specifically sports utility vehicles and pick-ups, are claimed to be extremely fuel-efficient.
Unfortunately, such vehicles could have come at a wrong time as
the market seems more interested in crossover-vehicles, now more popularly knows as CUVs.
In addition GM no longer projects the image of quality and distinction which it has previously had.
Therefore -
besides the issue regarding car features, costs and products -
another factor seems to be the car manufacturer’s image.
Though it is a fact that American made cars are of good quality,
it seems American consumers prefer the imported motors.
It has been said that perception is reality.
It may not be that easy to change the American public’s perception
that cars made in Japan may be just as good as the cars made by and for Americans.
The American Motor industry needs to address these issues of cost, foreign competition
and home image before it is able to look forward to a bright future.
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