Can the Auto Industry Build On Its Late-2009 Resilience?
While 2009 will be remembered as the worst year for the American auto industry in history, it did at least end the year on a more positive note. For example, Ford notched up a 33% jump in December sales, compared with December 2008. That helped the firm grab its first gain in U.S. market share since 1995. Meanwhile, General Motors and Chrysler narrowed their losses, posting sales declines of 5.7% and 4%, respectively. But what about the future? Current estimates call for U.S. auto sales to hit 11.4 million this year, rising as high as 13 million in 2011. A decent start, yes. But Detroit needs to do more. And that means more investment and innovation… Detroit Plugs Into the Future It’s no secret that Detroit’s love affair with the “gas guzzler” has played a big part in its downfall. Despite a drop in consumer demand, as the U.S. economy and employment situation worsened, the Big Three were still busy cranking out expensive SUVs and other small tanks. By contrast, countries like Japan an
