Is there a US automotive industry for 2006?
The year 2005 for the US automotive industry was particularly not at its peak, to say the least.
It has also been said that last year was the year that would go down in US automotive history as one of the terrible if not dreadful period ever.
However, it is not that bad though. The fact is, the US automotive industry is actually still thriving. Sales of cars are still growing strong. There are manufacturers whose business is still good despite the occasional slump. Unfortunately, two of the country’s largest car manufacturer are not having the best time of their life. The Ford Motor Company and General Motors are currently in the middle of a big and dreadful reorganization. They are further crippled by a share in the local market that seems shrinking, profits that are going down, as well as giving out high salaries and extremely generous benefits (health-wise most especially) to their current as well as previous employees.
Add to these two companies current woes, a number of car manufacturers from Asia seems intent to establish a niche in the US market. Most of these Asian car makers are already known. Most Americans even prefer such Asian made cars than the US manufactured ones.
It is safe to say, though a little hurtful to hear, that American car manufacturers are currently facing a difficult market especially now that companies are coming in from across the shores giving established US car makers such as Ford and GM a run for their money. This fact may be enough to cause worry among US car makers since these foreign manufacturers are offering good products at such comfortable prices.
Another addition to US car manufacturers woes are the rise of the cheaper electric-gas car as well as America’s now cold-hearted relationship with the SUV, or the sports utility vehicle.
However, industry insiders have expressed their view that the US car industry’s current problems are not predominantly caused by such factors, and so blaming the mentioned reasons is not necessarily appropriate.
Another reason, albeit quite a valid one, is the US auto industry’s inability to churn out new and exciting car products and features. Specifically, cars and car products and features that consumers would actually want to have and eventually purchase.
GM has made a move though. It hopes that the new line of vehicles it is coming up with will excite America’s car-loving culture. The new vehicles, specifically sports utility vehicles and pick-ups, are touted to be extremely fuel-efficient.
Unfortunately, such vehicles could have come at a wrong time wherein the market seems more interested in crossover-vehicles, now more popularly knows as CUVs. Plus, GM no longer carries in itself the image of quality and distinction which it has previously known to have.
Therefore - besides the issue regarding car features, costs and products - another factor seems to be the car manufacturer’s image. Though it is a fact that American made cars are of good quality, it seems American consumers seem to prefer the un-American made ones. It has been said that perception is reality. It may not be that easy to change the American public’s perception that cars made by Japan may be just as good as the cars made by and for Americans.
All in all, it is best that all issues and factors mentions be properly addressed. After all, there is no single solution to a problem that has many facets.