Main Street Rides

Unless you’ve been hiding under a rock, you’re probably aware that the past several years have been an absolute roller coaster ride for the automotive industry.  Bankruptcy, recalls, scandals, and a whole lot of ownership shifting have taken place in the wake of what is likely the biggest collapse in the economy of the automotive industry in history.  With 2008 being the pinnacle of stress for the industry,Asian & European manufacturers were feeling the heat of a struggling economy, none were hit as hard however as the American companies of Ford, GM, and Chrysler.  GM cut several brands including, Saturn, Pontiac, and Hummer.  Ford dropped Mercury while Chrysler merged with Italian automaker Fiat.  A few automakers were lucky enough to find new owners after the American auto giants could no longer afford them such as Jaguar/Land Rover and Saab.  Companies like Mazda, once owned by Ford, decided to strike out on their own and make it under their own capital.

While the Detroit three were not the only ones with such struggles they were the only ones on the cusp of bankruptcy; GM and Chrysler accepted a government bailout plan which has so far kept them afloat while Ford chose to try and dig themselves out.  While 2008 to present have been devastating to many manufacturers some still remained on top, like perennial king of the industry Toyota for example.  Toyota has been king of the hill for years now, when it came to sales and profits, with a reputation for reliability and quality that was pretty much set in stone Toyota seemed invincible and certainly sturdy enough to weather these poor economic times.  This past year, October and November especially, have proven otherwise for Toyota.  With 33 brands currently pumping out cars everywhere, 23 of them posted double-digit sales growth last month.  According to Motor Trend Magazine even Saab, Mitsubishi, and Suzuki, who have struggled to remain in the black posted single and double digit gains.  As for Toyota, they posted a loss and they were among the few in the industry that did.

Through all the turmoil of the past couple years several rebirths have occurred and some shining stars have risen out of the ashes.  While Chrysler is still struggling to find its place in the new market, Ford and GM have quickly risen to the challenge and posted big gains.  GM has done well but it’s almost as if Ford strapped a rocket to their company.  For being the only company of the three that didn’t accept a government loan Ford has done the best by far.  Nearly every model in Fords lineup has been completely redesigned and re-engineered.  GM is doing better with this but Chrysler seems to have taken longer to catch on with their new models taking longer to come out.  Chrysler has a few shining stars of its own however, the new Ram brand has kept them afloat while their replacements of the Chrysler 300 and Sebring slowly make it to dealers.  While it’s nothing new or significant the Dodge Caliber has also posted huge sales gains over the past two months.

As for Toyota and its tumble to the bottom of the pile, I can’t say that I didn’t expect it.  Plagued with mass recalls, lawsuits over sticky gas pedals and unexplained acceleration, and a few ugly scandals, people are turning away from the Japanese giant.  With few exceptions, Toyota vehicle sales are way down.  Tacoma, Tundra, and 4Runner have kept Toyota afloat this quarter but they haven’t saved them from the red.  The Detroit three were pushed up against the wall and they found a way to survive, some did better than others, while Toyota took their crown for granted and they were swiftly dethroned.

(Source: Motor Trend Magazine)