Global car sales

Changing partners in global car sales

TThe global automotive community has been particularly hard hit by the recent economic downturn.The American automotive companies, once considered powerhouses that dominated the industry are in a struggle for their very survival. This means a change in the leading providers of automotives world wide is imminent.

American Automotive Companies Just will not Budge

A story published recently by Edmunds.Com lists the most effect four door cars available, ranking them from one through ten. These rankings were based on fuel economy. For the first time in memory, not a single American car was included on the list. It seems that the car manufactures in America just are not in tune with what consumers are currently looking for. It is true that several domestic hybrids are available, most notably the Chevy Silverado, Saturn Vue and Ford Escape, but you may note they are not cars, they are trucks and Sport Utility Vehicles. The American Manufacturers have missed the mark by not focusing their energies on fuel efficient, hybrid or otherwise green cars. While there are some rumblings out of Detroit that these are in the works, automotive manufacturers outside of the United States have already released many green cars and have seen a high degree of success with their sales.

Who Makes the List?

Japan is leading the way as a provider of fuel efficient cars, taking away the upper hand that the American manufactures have previously held. Other companies such as Honda, Toyota and Nissan are all making the grade. This change in the market trend for just who supplies the vehicles we drive is staggering.

What is Detroit to Do?

Until the American automotive industry gets on board with the desires of the consumers, they are unlikely to recover their piece of the hybrid car pie. Additionally, the economic crisis in the United States has put the big three in a particularly bad spot. Car sales are dropping, consumer interest is waning, the United Auto Workers Union is refusing to negotiate in many cases, and the government is attempting to force the hand of at least two of the companies. General Motors is currently in the process of determining the best way to declare bankruptcy and Chrysler faces the distinct possibility of being forced to sell out to a foreign car company or face the very real possibility of closing their doors. Both Chrysler and GM have decided to scrap several of their major models, or to sell them to third parties. Reliance on bail out money, taken by all but Ford Motor Company, has put the automakers in a bind. So, what id Detroit to do? It seems clear that the big three must take drastic step in order to regain their positions.  Bankruptcy seems inevitable for at least two of the three. 


Unfortunately, with all the trouble the Big Three are facing, another problem has cropped up. Consumers are beginning to show concern that the Big Three will be able to hold up their end of car leases and sales. Consumers worry that when any of the Big Three declare bankruptcy or close their doors, maintenance programs will not be upheld. Some consumers, in order to protect their car purchases are simply choosing to use one of the foreign car companies that are currently gaining popularity. 

Looking to Europe

Many European nations, particularly England and France, already have a long standing tradition of clean or green cars. Governmental incentives have contributed to the success of the sales of green cars. Car tax incentives, scrapping programs and taxes on non-fuel efficient cars have led many consumers to jump on the green car bandwagon. It seems that the United States must consider at least some of the incentives in order to help their automotive companies stay a part of the global automotive industry. In a nod towards successful European programs, the Government of the United States included a tax incentive for green cars in their recent economic stimulus package. Hoping to entice consumers to buy green cars, the government has offered a rebate for consumers that do. This rebate will come in the form of a tax credit when the consumer completes their income taxes for the year. 

The recent economic crisis faced by the world has had an interesting effect on the automotive manufacturers. The position of the Big Three has changed, allowing for other car manufactures to take their place. The economic crisis, current condition of the Detroit automotive industry and the growing lack of faith in the Big Three is leading toward a shift in the global partners we sell buy our cars from.