wellcoveted.com wellcoveted.com
   Index >> About Us >> Privacy Policy >> Terms & Conditions >> Add Url >> Add Article
Search:   
Add Url
 

Government & Politics

Health & Hygiene

Employment & Careers

Banking & Finance

Food & Recipe

Automotive

Home & Garden

Children

Society & Issues

Property & Estate

Malls & Shopping

Healthcare & Medicine

Recreation

Travel & Accommodation

Sports & Adventure

Business & Commerce

Self Enhancement

Education & Reference

Art & Culture

Lifestyle & Fashion

Internet & Computers

Online & Board Games

News & Events

Technology & Science

 

Index › Banking & Finance › Bankruptcy & Chapter 11
 

U.S. Auto Manufacturers Are They Ready To Declare Bankruptcy?

 
Author: David Maillie
 

U.S. auto manufacturers are facing more pressure from import manufacturers every year. They have already been feeling the heat from Nissan, Toyota and Honda, but now with Hyundai taking a larger chunk of the middle and lower range cars, SUV's and trucks this may be the start of the end of the likes of Ford and G.M.

Ford has already announced a restructuring and a projected cut of 30,000+ jobs. G.M. has recently retired an old name brand Oldsmobile and is posting losses on a regular basis. Delphi Corp., the largest auto parts supplier for U.S. manufacturers has already declared bankruptcy which makes buyers leary of future parts availability. Most of the other parts suppliers are very close to or are currently declaring bankruptcy.

In the 80's when Chrysler was having severe finacial woes the government stepped in with million dollar loans and other aid. The government is currently reeling from Katrina, New Orleans, and the war in Iraq. It can't afford to bail out Ford or G.M. The public opinion is against a government bailout as the economy is not its best. George Bush has too many other problems to deal with like high gas prices, natural gas, Iraq, etc...

So, without a government bailout and no proposed new laws to halt the outsourcing and outflowing of jobs and such to overseas giants like China and Japan, it is only a matter of time before Ford and G.M. go bankrupt. Toyota and Honda have been gunning for the number 1 spot and now that they have it are not going to give it up. The only hope left is with the trucks. Both Ford and G.M. have a bustling truck business and it is their only profitable business. The imports have tried to break into this market and after quite a few years they have not had much success. The majority of trucks are bought by die hard Ford or Chevy people. But, that may also change. Toyota has found that the key may be in Nascar. This could and will lead to other imports getting involved and taking the American out of Nascar. That would eventually happen as they have more money and lower costs.

Basically, with the laws the way they are right now, the U.S. auto manufacturers do not stand a chance. So the question is do we restrain trade with countries like China and Japan, possibly hurt foreign relations, Make it more expensive to buy better built and higher quality imports, etc... Or let democracy, free trade, and a capitalist society have its way giving Americans the best, safest vehicles, for the lowest price? Regardless of how we make our laws, Walmarts or their equivalents will always prevail - the basic premise of Walmart's founder Sam Walton was to sell the best products to consumers at the lowest price possible. Look at what he did. In a period of 40 years he went from one store to being the largest retailer in the world. Walmart has plans for 2500 stores in China. Maybe the U.S. auto manufacturers could learn something here. Take the imports on at their own game, stop paying multi-million dollar compensation packages to executives that aren't fixing the company. Maybe they need to pay more attention to what brings the best results in advertising at the least expense. Why is it that some companies must spend millions on advertising and others in the same niche get more results for much less?

Ford and G.M. need to rethink and come out with an attack plan. Go after the imports at their own level. Maybe make a marketing ploy of America and what we may lose. The kids of today aren't growing up dreaming of Shelby Mustangs and Corvettes. They are driving Honda and Toyotas that they fix up like in the Movie The Fast and the Furious. Maybe its too late.

 
 
 

Related Articles

 
Free Yourself from Debts ?C Debt Consolidation Loans
 
Homeowners Insurance Companies
 
Online Car Loans
 
Eliminate Financial Worries Through Debt Management Help
 
Free Debt and Bill Consolidation
 
Tax Advantages Of Incorporating A Business
 
Pluses and Minuses of an Instant Approval Credit Card
 
Preparing to Enjoy Your Retirement
 
High Risk Personal Loans - A Second Opportunity to Bring Your Credit Back on the Right Track
 
Ease Your Cash Flow: Invoice Finance
 
 
 
 

Compare Term Life Insurance Quotes

Are you thinking of buying a term life insurance coverage? Do you find it difficult to decide which ... - Ross Bainbridge
 

Bankers Don't Want You to Know That You Pay for Your No Cost Home Loan Forever

With mortgage rates continuing on a downward trend, the competition in the business is fierce. A day ... - Mark Barnes
 

Car Insurance Rates

Many car owners avoid taking more auto insurance than the minimum level required by the state simply ... - Tristan Andrews
 
 

Affordable Life Insurance Policy ? Tips On How To Compare And Save Money

Many things factor in with getting a cost effective life insurance quote and policy. It is wise to t ... - Dean Shainin
 

FOREX Fundamental Analysis

Information on using fundamental analysis for FOREX trading. - Steve Welker
 

Term Life Insurance

Term life insurance is the simplest form of life insurance on a limited budget, and is available for ... - Peter Emerson
 

Multi Trip Travel Insurance

Are you a frequent traveler? Do you go on regular trips outside the country? Then you definitely sho ... - Ross Bainbridge
 

The Major Changes Caused by the Bankruptcy Reform Act

Hightlights of the major changes to the bankruptcy laws likely to affect consumers. -
 
 
Index >> Privacy Policy >> Terms & Conditions  
Copyright © 2008 www.wellcoveted.com All Rights Reserved.