GM and Chysler Bankruptcies

[Roland]

GM produced 3,382,315 vehicles in 2005, and Chrysler made 1,652,703 vehicles. I foresee a near term shortage in manufactured vehicles. 2nd place was Ford with 2,965,872 vehicles. What most people don't realize is that Ford, who got in to the cheap borrowing before the "liquidity crisis" :ph34r:will probably run into financial trouble within the next year as well. The big three produce about 80% of the vehicles produced in North America.

So the big question I have is; where will the production capacity come from to step in and provide North America with automobiles?

Just a thought from the other side of the coin, since my life depends on it: who says you have to buy a new car every year? Maybe, just MAYBE, people will have to take care of what they already own. That means spending money on maintaining the vehicle(s) they own, putting money back into the very same hard-working people you want to support. People like me, my father, my technicians, and all the employees of the vendors I deal with. That means continuing manufacture of parts. That means increasing giving REAL dollars to REAL people, who work hard every day for their money, rather than expecting it to be handed to them because of their title.

I'll be the first to say this whole thing is a cock-up of massive proportions, and it scares the living daylights out of me day and night. However, there IS an upshot to all this: a move from consuming to maintenance. The best part? With proper care, maintaining even an aging vehicle can be MUCH more cost-effective than purchasing a new one, and will guarantee far more dollars into the pockets of both the dealerships and many other places. Maintenance is what keeps me alive. It's what gives me my meager salary. It's what sustains the other half of the auto industry, the one NO ONE ever talks about or even considers.

This could very well be the best AND worst thing to happen to the automotive industry since its inception. The Big Three have been sitting on their laurels for far too long, and it's cost them. The Asian import market is skyrocketing, and it will gladly fill up the void left by the departure of the old guard. The European import market has hundreds of vehicles ready to fill our needs, if only they can cross the governmental barriers of safety and emissions concerns (some of them viable, most of them typical political BS).

There will be a short-term shortage, but a large portion of that will be caused by those people unwilling to let go of their domestic brand loyalty. I see far more import vehicles on the road than I do domestic, and far more older import vehicles than domestic.

Here's a thought: enticing import auto manufacturers into building factories on our soil, like BMW and Volkswagen have in the south? You support domestic industry, even if it's through an import product. What? Too simple? Yeah, you're probably right. Besides, I'm sure BMW, Mercedes-Benz, Volksawagen, Toyota, Honda, Nissan, Hyundai, Volvo, and Saab are on the verge of collapse, too. (Ok, so maybe that last one.;))

Oh, and to get back to your figures, what good are looking at production rates 4 years ago? What about last year? Or the year before? How about comparing production rates to actual sales? How about ratios of combined domestic production to that of import? Likewise for sales? No, I don't think we'll see nearly as much of a problem with automotive SALES in the future, near or far. At least, not due to lack of production. Perceived lack of production will probably hinder things, as all FUD does, but actual production should ramp up significantly from other manufacturers to fill the void. Besides, it's not like people are banging down the doors looking for new cars right now - that's a large part of why all these dealerships are in such trouble. They're stuck with millions of dollars in stock that they can't get rid of, so they're forced to sell them for pennies on the dollar, minimizing profits while maximizing costs (dealerships more often than not finance those vehicles; they rarely ever own them outright). --I'm stopping myself here before I go off on an hour-long tangent. Suffice it to say, I think that portion of the automotive industry will be fine. The only ones who will suffer will be those who can't suck up their "American Pride" and buy a product based on its actual worth, rather than the badge glued to the front of it.