Detroit’s primacy threatened by Asia; a painful restructuring underway

With sinking sales to job cuts by the thousands, it’s no great exaggeration to say that when historians write the history of America’s big automotive manufacturers, 2005 will go down as one of their most dreadful years.

That’s not to say the American automotive business is in dire straits — on the contrary, it’s thriving. Automobile sales are still strong, but while times are good for some manufacturers, the nation’s two biggest — General Motors and Ford — are in the midst of a massive and agonizing reorganization, hobbled by a shrinking domestic market share, plunging profits, and the high wages and generous health benefits promised to their existing and former workers.

As if that wasn’t already enough, Detroit’s supremacy is also under threat from a handful of Asian manufacturers, some already well-established, that are keen to muscle their way into the U.S. market.

“American vehicle makers are in the middle of a very hard market environment — overseas companies are attacking them with strong products and good prices, and more of them are coming onto the market each day,” said Daniel Gorrell, vice president of the automotive practice at research and consulting firm Strategic Vision.

Full Story: http://msnbc.msn.com/id/10642724/

whatever. i'm so tired of all this shock journalism. the press needs to get a life.

Edited January 3, 200620 yr by regfootball