Well we have sure had a rocky year in the
auto industry . The demand for Hybrids out paces the available Hybrids for sale by nearly a 10:1 margin, auto dealerships cannot keep them on the lots and the waiting lists look like a Santa Clause wish list from all the children of the World. Everyone has noticed the trend for smaller cars and we are seeing the first imports from China and India.
TaTa Motors has the Nano and China has their first dealerships opening now on US Soil. These vehicles are smaller more efficient and cost a lot less. GM and Ford are now offering longer Leases, but the car finance business is in dire straights as all those SUVs on lease are coming back and not nearly worth as much as their so-called book value. In fact, most dealerships do not even want the larger SUV trade-ins on their lots, because they will not sell.
GM and Ford market share has seen steady decreases , but over all; all car sales are off, fewer cars have been sold and Toyota and Honda that are outpacing GM and Ford by a mile have seen sales go down drastically. The recession is hitting hard in the auto industry and people keeping cars longer because budget wise they have no choice.
New materials and new technologies are on their way, but they will not get here soon enough for GM and Ford, as they make even bigger cuts. Hybrid cars cost a lot to build too, this means more complex systems and higher sticker prices, at a time when Americans are cutting back. And although, unemployment is on the rise slightly in the US, there are still huge shortages of auto mechanics and who is going to work on all these high-tech hybrids of the future? Scary stuff in the auto sector.
