ALT-1 The Future of us Automakers
What is the future of the US automakers? I think that we know the near-term paths of the three largest automakers, and I think that it is for the good of the companies, and the US economy that these things are happening. The business landscape is changing, and the way that cars are made, and manufactured is going to be changing too. If you can't compete, you can't make any money, and you have to change the way that you go about doing business. I think that the three major companies will stay intact, and hopefully be even better after they get back on their feet.
GM is clearly going into bankruptcy, and that is a good thing in a couple of ways. Bankruptcy means that GM will be forced to reorganize, and they already have, and they have shed some brands. While I am dissapointed that there will no longer be a Pontiac, there is no reason to think that the brand couldn't be brought back. In fact, I bet you that it is the frist one brought back when the climate changes for GM, and they are making money once again.
Chrysler sold part of its operations to Fiat, and that will be pretty cool. Having a European sports car company come in and run some of the operations of Chrysler can only be a good thing. Imagine the new cars that could come out of a union like that, and they could put some new ideas into the design of the cars that Chrysler makes, and that can only be a good thing. Innovation is the way in which companies succeed, and there is nothing wrong with new thinking at the office.
Ford is already ahead of the curve, and hopefully will be able to survive. I found it humorous to see Mike Rowe driving around in a smaller Ford, after seeing him driving around in the trucks, and talking about how manly they were. Ford knows that the wave of the future will be smaller cars that have good gas mileage. A turn to more sporty models will also make Ford stand out, and a focus on safety in their cars will also set them apart in the future.
GM will once again reign supreme in the car making game. Americans want to buy American cars, and if GM can make that product, the people will buy it. If they make the smaller cars that people want, and can make them look cool, GM will be the brand people buy again. Chrysler will always be in business because they have the partnerships that they need to survive, and Ford I see being a strong player in the market shortly.
Ford is lucky that it only has one brand, and it has lower costs. That is probably another big reason why it was spared the fate that GM had to incur. GM will rise to the top again, and I think it will be a good stock buy in about two to three years, as they get back on thier feet, and people buy GM again. They will always be the lifeblood of the car industry in this country, and I don't see why that will change once GM comes back.
