Kiss the American Auto Industry Good-Bye [Archive] - Ford Inside News Community

: Kiss the American Auto Industry Good-Bye



1931Chevy
03-06-2007, 05:28 PM
http://www.edmunds.com/insideline/do...ticleId=119811
Now that DaimlerChrysler has put the Chrysler Group up for sale, the long-expected massive restructuring of the American automobile industry might finally have arrived.

Take a snapshot for posterity, because today's U.S. automotive landscape won't look like it does for much longer. As a friend reminded me, it's like what happened in the rail business at the turn of the 20th century, when once-dominant steam locomotives gave way to diesel- and electric-powered ones. The entire rail industry was turned on its ear.

For the past couple of decades, experts have been predicting a major restructuring of the U.S. auto industry because of too much plant capacity (notably that owned by Chrysler, Ford and GM), too many employees and too many costs (especially employee costs). Automakers have tried to ward off this inevitable transformation by attempting a nip here and a tuck there, but cosmetic surgery will no longer be enough.

No matter who buys it and the list of potential suitors is long Chrysler as we presently know it is history. More than likely, Chrysler will be acquired and broken into pieces. Some parts might be sold to the highest bidder, while others could be tossed onto the trash heap.
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ndwariga
03-07-2007, 09:18 AM
I do not think Chrysler is in the gutters yet.. we will see.. An Equity tie up with GM might keep it hopping along