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A bumpy road we should not follow
For decades, General Motors, Ford and Chrysler were brand names dominating the auto industry around the world. Today, and even before the world economic crisis, the big three are having huge financial problems. Filing for bankruptcy protection and going into alliance with Italian Fiat are symptoms of the deep problems Chrysler is facing.
Automobile experts, cabinet secretaries and business advisers, flanked President Obama as he announced a plan to allow the United Automobile Workers to take control of Chrysler, through their retirement plan, with Fiat and the United States as junior partners.
The only precedent for a major automotive American company filing bankruptcy was Studebaker in 1933. The third largest US automaker had recovered from near bankruptcy in 1979 with the help of Mr. Carter administration. In an attempt to recuperate from troubled financial times, Chrysler was sold to the German automaker Daimler-Benz and in 2007 was acquired by the Cerberus Capital Management.
Mr Obama has been confronted with being too close to the limits of government involvement with private industry which did not happen since the great depression which was a worldwide economic crisis which confronted the United States with widespread unemployment, low industrial and construction production. The great depression is associated to the Black Tuesday on the 29th of October, 1929 when the Dow Jones Industrial Average fell 23% and lost more than 8 billions in value.
General Motors on the other hand, is in the process of producing its own lifesaving program which must be ready within 30 days. The new Chrysler board of directors is conformed by union representatives, US administration and the Canada Government which also lend money for Chrysler´s rescue.
Recently USA Today editorial labelled Automobile Manufacturers as the “dinosaurs of Detroit”. For years, management experts have criticised large corporations because they move too slowly to follow the trends around the world which require they move fast to be ready for a very interrelated Global economy with modern players ready to slash a good bite at the now battered large corporations.
The auto industry is completely different to that of the 70s. Transforming an entire industry and adapting it to the new world standards is quite complicated and requires planning. Anticipating consumer trends is essential. Transforming the auto industry and the fuels that power their products is crucial.
Following the management and financial troubles of the auto industry and going to showrooms and test driving the new models produced by worldwide competitors are completely different ball games. A good example is the 2011 Jeep Grand Cherokee from Chrysler, introduced at the 2009 New York auto show. The soft bodylines, the power of its two versions and the luxury plus a lot of new features give a leading edge to the new Cherokee of the SUV class to ride in style the bumpy road ahead of Chrysler.
Luxury, improved storage space, visibility and the safety users enjoy in the new Cherokee should help Chrysler smooth a bumpy ride ahead.
As per Yahoo autos, “Day one wrapped up with insight into what the future holds for the automotive industry. Times are tough, but the new vehicles on display at the 2009 New York International Auto Show prove the automakers are ready when things turnaround.”
China on the other hand is becoming a world auto industry power. China´s auto industry is growing steadily at a 15% per year. As per Zhang Xiaoyu, vice-chairman of the China Machinery Industry Federation, China is expected to produce 18 to 20 million vehicles by the year 2020, which will make China the world # 1 auto producer. China spokesmen are confident they will be able to improve by enhancing their ability to develop new types of cars, while enhancing their post sales service.
Besides the economic and industrial impact created by the troubled big three auto makers, there is a romantic side for those of us who were born and grew around the Chevy models, jeeps and Fords at home, for farmers and for our outdoor activities on and off road.
Simultaneously, all automakers are moving to confront the shifts needed for the future of transportation. Electric powered cars, hybrids, low gas consumption are undergoing extensive studies and lab and on the road tests. General Motors engineers are working in the Project P.U.M.A prototype which elegance, maneuverability, dynamic stabilization, battery, sensing, and control technologies are combined to solve transportation challenges. These developments from General Motors in technology collaboration with Segway developments with great benefits like maneuverability, a small footprint and providing a fantastically unique ride experience. Test driving one of these models let us understand that this is something completely different in design and practicality.
Besides the technology changes, there other areas General motors is working on to go out of the crisis. Conversations with the United Workers are under way to resize the labor force. Also the banks must help to refinance and alleviate the debt problems the company is facing. After changes in Chrysler experts feel that General Motors is in a better position to avoid going the bankruptcy way.
Re engineering the auto industry is a multi purpose, multi strategy that includes Ford Motor too. Ford market is directed to trucks, and high priced vehicles. Now, they are strengthening their small autos, fuel efficient vehicles which they have being marketing at a loss.
As per Bill Ford jr, Ford CEO they are very exited at creating a clean powered vehicle whose path begins with the hybrid technologies like the one they are using in their Ford Escape Hybrid which they claim is the cleanest, most fuel efficient Sport Utility Vehicle in the world. Ford is using a very interesting plan to keep or boost consumer confidence which is called the Ford Advantage Plan.
Ford global strategy is giving Ford Focus the push needed for this model to become a profit earner after years of being sold at a lost. Ford executives are working their plan for a profitable future which includes building An electric powered Ford Focus for 2011, re negotiations with Auto Workers Union to reduce costs and re engineering their plants to work similar to those of Toyota which are considered highly efficient.
The auto industry needs the creativity of all the people involved in the process, as this is a very complex situation that is a challenge for planners, managers, finance people and many more. There are no easy solutions but hopefully we will have a better Auto industry ahead.
Jose Damaso Ramon
.
Automobile experts, cabinet secretaries and business advisers, flanked President Obama as he announced a plan to allow the United Automobile Workers to take control of Chrysler, through their retirement plan, with Fiat and the United States as junior partners.
The only precedent for a major automotive American company filing bankruptcy was Studebaker in 1933. The third largest US automaker had recovered from near bankruptcy in 1979 with the help of Mr. Carter administration. In an attempt to recuperate from troubled financial times, Chrysler was sold to the German automaker Daimler-Benz and in 2007 was acquired by the Cerberus Capital Management.
Mr Obama has been confronted with being too close to the limits of government involvement with private industry which did not happen since the great depression which was a worldwide economic crisis which confronted the United States with widespread unemployment, low industrial and construction production. The great depression is associated to the Black Tuesday on the 29th of October, 1929 when the Dow Jones Industrial Average fell 23% and lost more than 8 billions in value.
General Motors on the other hand, is in the process of producing its own lifesaving program which must be ready within 30 days. The new Chrysler board of directors is conformed by union representatives, US administration and the Canada Government which also lend money for Chrysler´s rescue.
Recently USA Today editorial labelled Automobile Manufacturers as the “dinosaurs of Detroit”. For years, management experts have criticised large corporations because they move too slowly to follow the trends around the world which require they move fast to be ready for a very interrelated Global economy with modern players ready to slash a good bite at the now battered large corporations.
The auto industry is completely different to that of the 70s. Transforming an entire industry and adapting it to the new world standards is quite complicated and requires planning. Anticipating consumer trends is essential. Transforming the auto industry and the fuels that power their products is crucial.
Following the management and financial troubles of the auto industry and going to showrooms and test driving the new models produced by worldwide competitors are completely different ball games. A good example is the 2011 Jeep Grand Cherokee from Chrysler, introduced at the 2009 New York auto show. The soft bodylines, the power of its two versions and the luxury plus a lot of new features give a leading edge to the new Cherokee of the SUV class to ride in style the bumpy road ahead of Chrysler.
Luxury, improved storage space, visibility and the safety users enjoy in the new Cherokee should help Chrysler smooth a bumpy ride ahead.
As per Yahoo autos, “Day one wrapped up with insight into what the future holds for the automotive industry. Times are tough, but the new vehicles on display at the 2009 New York International Auto Show prove the automakers are ready when things turnaround.”
China on the other hand is becoming a world auto industry power. China´s auto industry is growing steadily at a 15% per year. As per Zhang Xiaoyu, vice-chairman of the China Machinery Industry Federation, China is expected to produce 18 to 20 million vehicles by the year 2020, which will make China the world # 1 auto producer. China spokesmen are confident they will be able to improve by enhancing their ability to develop new types of cars, while enhancing their post sales service.
Besides the economic and industrial impact created by the troubled big three auto makers, there is a romantic side for those of us who were born and grew around the Chevy models, jeeps and Fords at home, for farmers and for our outdoor activities on and off road.
Simultaneously, all automakers are moving to confront the shifts needed for the future of transportation. Electric powered cars, hybrids, low gas consumption are undergoing extensive studies and lab and on the road tests. General Motors engineers are working in the Project P.U.M.A prototype which elegance, maneuverability, dynamic stabilization, battery, sensing, and control technologies are combined to solve transportation challenges. These developments from General Motors in technology collaboration with Segway developments with great benefits like maneuverability, a small footprint and providing a fantastically unique ride experience. Test driving one of these models let us understand that this is something completely different in design and practicality.
Besides the technology changes, there other areas General motors is working on to go out of the crisis. Conversations with the United Workers are under way to resize the labor force. Also the banks must help to refinance and alleviate the debt problems the company is facing. After changes in Chrysler experts feel that General Motors is in a better position to avoid going the bankruptcy way.
Re engineering the auto industry is a multi purpose, multi strategy that includes Ford Motor too. Ford market is directed to trucks, and high priced vehicles. Now, they are strengthening their small autos, fuel efficient vehicles which they have being marketing at a loss.
As per Bill Ford jr, Ford CEO they are very exited at creating a clean powered vehicle whose path begins with the hybrid technologies like the one they are using in their Ford Escape Hybrid which they claim is the cleanest, most fuel efficient Sport Utility Vehicle in the world. Ford is using a very interesting plan to keep or boost consumer confidence which is called the Ford Advantage Plan.
Ford global strategy is giving Ford Focus the push needed for this model to become a profit earner after years of being sold at a lost. Ford executives are working their plan for a profitable future which includes building An electric powered Ford Focus for 2011, re negotiations with Auto Workers Union to reduce costs and re engineering their plants to work similar to those of Toyota which are considered highly efficient.
The auto industry needs the creativity of all the people involved in the process, as this is a very complex situation that is a challenge for planners, managers, finance people and many more. There are no easy solutions but hopefully we will have a better Auto industry ahead.
Jose Damaso Ramon
.
Tags: a, american, brand, chrysler, crisis, economic, ford, general, industry, motoprs
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