Re: CNN/Money: Detroit Prospers in 2015
LOL. Yeah...Right.
This is more like it:
NEW YORK (CNN/Money) -- From the perspective of 2015, it's tough to remember that only a decade ago, in 2005, the nation's automakers were only just about on the ropes, with an optimistic view of the future.
As 2015 comes to a close, Detroit's Big Two are posting solid profits in their car and CUV operations at home, with a product lineup that's just about the envy of their Japanese competitors.
Back in 2005, General Motors (Research) and Ford (Research) were both losing market share and tons of money on their core North American auto operations. Practically the only way they could get cars moving quickly out of dealer lots was to offer heavy incentives and below-cost "employee pricing."
DaimlerChrysler's (Research) Chrysler Group was doing a little better but it was still a distant No. 3 in danger of becoming No. 4 behind fast-charging Toyota.
Today the two have just a slightly bigger slice of the market than a decade ago. But rising sales across the industry have helped them, along with some key new products and alliances. And new and refurbished plants finally helped the automakers get costs under control and produce cars and trucks with far fewer workers.
The modern Big Two assembly line can now switch quickly between production of different models based on market demand, an advantage essentially held only by the U.S. plants of Japanese competitors for the last decade.
The financial situation of the industry in 2005 could only be described as dire. Early in the year, GM and Ford both had their debt cut to junk bond status. By 2006, both had slashed their dividend payments in an effort to conserve cash.
The spark that was Delphi
Then in the fall of 2005, Delphi, the auto-parts maker once owned by GM, filed for bankruptcy -- the biggest ever in the domestic auto industry -- and its president and some analysts suggested GM might eventually follow. Talks between the United Auto Workers union and GM about curbing health care costs for union members, retirees and their families seemed to be going nowhere.
Unfortunately, the talks went no where, and so did sales of GM vehicles, especially in the wake of the gas crisis, which caused the then touted “Fuel Efficient” fleet of conventional gas combustion vehicles to force GM to fold under the pressure, having fallen far short of the mark.
DaimlerChrysler’s group managed to avoid the same fate by taking the plunge with a Diesel-Electric Hybrid, while Ford concentrated on pushing the envelope with their gas-electric hybrids, offering an entire fleet of Hybrid vehicles without raising the base model prices, much to the amazement of all critics, which coupled with strong CUV sales, managed to allow both of them the breathing room needed to stay afloat and make a strong comeback.
Even with gas nearing $4 in 2015, it’s fond to remember the days of the gas crisis. With the hydrogen fuel cell and the hydrogen fuel cell industry having made one of the biggest impacts since the industrial revolution in the US economy. As the worlds leading supplier, and with the Big Two, foreign competitors, and with all the private investing, nearly all vehicles are powered by the clean and efficient fuel cells, and we’re once again lucky to have the fuel costs that the rest of the world envies, with Hydrogen still at a reasonable $1.50 a gallon on the national average.
Industry sales set records
Despite the steady fall in oil prices, the complete proliferation of fuel cells, population and economic growth helped demand for autos keep growing. U.S. auto sales in 2015 are now expected to reach 18.6 million vehicles, the fifth straight record and more than 1 million above the pre-2005 record, 17.4 million, set in 2000.
Of course, the steady climb in domestic sales was nothing compared with the explosive growth in China and India.
And U.S. automakers responded. They opened plants overseas to serve those growing markets. Besides lifting their sales and profits, that helped them create a new base of lower-cost Asian parts makers who could help supply their U.S. plants as well, in return for discounts on Hydrogen fuel, is cause for the Oil Industry to shudder once again.
But most important was the series of hot new vehicles coming out of Detroit, the third Generation Hydrogen Fuel cells, which tout, “Just as gasoline-electric hybrids were beyond conventional gas combustion engines, this new generation fuel cell is beyond its predecessor.” Added with a low price tag thanks to low cost parts, and the second generation hover features, Ford and DaimlerChysler both have announced that they’ve filled all their pre-orders threefold over. “We’ve had people asking us for almost 20 years, ‘Where’s my flying car?’, and here’s the answer.”, joked Ford CEO Bill Ford Jr.
Last edited by Pravus Prime : 10-12-2005 at 11:57 AM.
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tells me we would have a higher then average precentage of guessing the future !
