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Do American Automakers Stand a Chance?

Posted on: Saturday, July 26th, 2008 at 12:09 am by: Amy Cox
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For years, the vehicles lined up at the lots of American vehicle manufacturers looked as if they were ready for a funeral procession. One could practically hear taps playing if they drove past the car lot with the window down. Now, though, it seems that American auto manufacturers might finally get a chance to compete once again. For ages, they have been down on their luck, but with hybrid vehicles, they might be able to become competitive yet again.

Ford

Ford has suffered many setbacks within the last several years. Instead of accepting defeat, Ford has decided to reinvent itself. Once known for big trucks and gas guzzlers, the auto manufacturer is now receiving a makeover. That makeover might just give Ford the push that it needs.

Right now, Ford is recovering from the shock of an $8.7 billion quarterly loss. Instead of using their same methods, they have decided that they need to reevaluate what they are doing.

They have decided that instead of focusing on the gas guzzlers, it would be a good idea to reinvent itself in order to make consumers happy. That means that Ford will focus on doubling hybrid production by 2011, and also upping the manufacturing of four cylinder vehicles. This could get tremendous results for the automaker.

The reasons are simple. Right now, consumer demand is for smaller cars that use less fuel. Also, consumers want something affordable. Ford can offer both of those things, if they set them in their sites.

Chrysler

Things haven’t been looking great for Chrysler, either. Chrysler is trying to rebound from a $510 million loss for the first quarter, while the world is still waiting for the most recent financial results to be made pubic. The company has a three month delay with its financial reporting, so it will be some time before it is known how the last quarter went. Still, it is agreed that the company suffered a tremendous loss.

Chrysler has thus far not shown that they are going to rebound with the changing market. Instead of embracing hybrids and small cars, Chrysler is using the opportunity to make things like hybrid minivans and SUVs. While there will always be a need for such vehicles, it shows that Chrysler is not truly in touch with the market and consumer demands.

Chrysler has had countless financial trouble throughout the years, and if they cannot truly embrace hybrids and smaller vehicles, they may be left behind.

While GM has yet to release its financial information for the quarter, the company is expected to report a tremendous loss. At one time, the automaker was a truck selling powerhouse. Now, they cannot move their vehicles off of the lot.

It looks as if GM could turn things around, though, and become a viable auto manufacturer once again. GM is working on developing a power train that will cut production costs. An interest in technology such as that can really help the company.

Also, GM plans on staying with the competition when it comes to plug-in vehicles. By 2010, the company intends to have plug-in vehicles that are available to the public. That is vital for the company to stay afloat.

GM has proven that it is a forward thinking company. While it is in the middle of a slump right now, it has the best chance of all of the American automakers of recovering. Not only is the company responding to the needs of consumers. They are also becoming a leader in technology.

The next several years are very important to American automakers. They will allow the manufacturers a chance to prove themselves. Companies will either excel in the new market or fold under the pressures of a poor economy and high gas prices.