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Automotive > Auto Industry and Automakers Hurting Indeed
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Article rating : 0.00, 0 votes. Author : Lance Winslow
The North American automobile manufacturing companies will be coming out with their quarterlies soon and many in the automaker industry as well as the consultants and analysts are saying that this is not going to be pretty. Both Ford and General Motors are expected to lose money, but how much? Are we looking at more bankruptcies like the Delphi Auto parts company, which was spun off from GM in 1999? Some analysts are already saying that there is a 30% chance of a General Motors Bankruptcy filing. But North American and United States automakers have had issues with an already growing gap of 3.5% market share against Japanese Automakers due to the consumer move to smaller and more economical vehicles.
With fuel prices at $3.00 plus per gallon most agree that we will see a similar but mild repeat of the Deming Years? Both General Motors and Ford have been offering deep discounts to counteract slumping sales, you have seen the Employee Discounts given to all customers, such discounts make a profit situation tough. Now we see bulging health care costs and the looming crisis of under funded pensions. And the Unions are not cutting any slack this time around. Many analysts are saying there will be a huge round of job cuts.
General Motors is saying it will get through this come hell or high water, but industry analysts say that the American Automakers are probably in for a lot more of both. Think on this.
"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs/
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