Death of the Automotive Industry – who’s to blame?
US car support has been dangerously low in the wake of the global financial crisis. Sales are down and jobs have been lost across the nation, but who is taking the rap for it?
The failings of global banks and governments have been well documented in the past, and the knock-on effects to industries the world over have been felt hard. However, it seems that while the big leaders in the automotive industry are asking for much-needed support from the Government, there is little chance of them getting it. Along with the refusal comes a barrage of criticism, namely that the large players in the car world have been doing some overspending of their own in the past few years. The fact that in 2008, the top three (Ford, Chrysler and General Motors) were spending billions more than they were pulling in from sales must sting. Criticisms of mismanagement have been slung since then, particularly as massive job cuts ensued and sales in US car support fell through the floor.
And the car industry blames it on the latter – namely, that the tough marketplace has resulted in consumers unwilling to purchase new vehicles especially in the midst of the global recession. They claim that this and this alone is the reason their empire seems to be falling.
In more recent news, Barack Obama finally relented and has promised governmental support to the car industry (particularly in exchange for producing more eco-friendly vehicles). It remains to be seen the full extent of the damages caused to the industry during the credit crunch, and it will be interesting to keep tabs on how relationships with Congress blossom (or decay) over the next few years. Either way, it doesn’t look like the industry will return to its pre-recession levels for some time.
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