About American Cars

There had been reports of massive lay offs and downsizing last year. This 2008, the trend has changed. Buyouts are fast becoming a response of companies to a weakening US economy. Take for example the case of General Motors that has recently offered buyouts to its 74,000 strong employees.

NYTImes.com reports that what prompted the popular US automaker to launch its latest “special attrition program” was its fourth quarter losses and the gloomy outlook for the United States market.

Am I smelling bankruptcy here? Or is this just another cost-cutting measure? Or better yet, there is basis on the reports that the American auto industry is in a shamble. We’ll definitely see in the next few months.

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We all know the US economy is still as strong as ever despite the occasional issues on terrorism and the coming election. However, there were reports that the US automotive industry is experiencing recession. How true?

In an event in South Korea, Nissan Motor CEO Carlos Ghosn has expressed concern for the U.S. auto industry saying that it is in a recession. He told reporters that the high cost of materials such as iron ore, precious metals and aluminum used in producing cars represent risk for the industry. But then, he also said that the U.S. auto market “will not stay in a recession for a long time.”

I believe that. While automotive sales have gone low in the past years, as long as the American economy remains in shape, the US automotive industry can weather the storm. Let’s all think positively, people.

Most of you won’t be happy to know this, but please allow me to share it with you. Taurus X, which was once popularly known as Ford Freestyle, is set to bid goodbye to American car fans by 2010. This was confirmed by Ford CEO Allan Mullaly saying that “a redesign of the Taurus sedan will happen much sooner than originally planned.”

Jalopnik.com reports that one reason for this development is that Ford would like to make the road clear for its new baby called Ford Flex MPV, also a 7-seater. Well, does it mean Ford wants consumers to prefer Ford Flex MPV over Taurus X? Looks like Ford is making some streamlining here or maybe trying to cut down on costs and production facilities. I just hope it’s for the better.

“Cannot Put GM and Chrysler back together again”, that’s the words that are coming out of the mouth’s of the Presidential Automotive task force. That may be a more realistic view of the whole picture for as we have been stressing over and over again, they’re not genies who just snap their fingers and the whole world gets better. They started out with optimism and they still have it in them, only this time round, they are a bit more realistic for they now know the full extent of the economic troubles that have led to the demise of the US auto industry.
The problem is that the whole deal is rotten, from housing, health and everything else in between are hit hard and no one authority, not even the Federal Reserve with all it’s gold and monetary resources can remedy the whole thing. The team is now leading efforts to restructure the auto giants and the figures don’t lie, one will have to go bust to give way to a better mix of the two auto giants that may make them better than the two individual units.

With dismal sales and problems left and right, America’s big 3 auto makers are really in big trouble. Waiting for the emergency bailout funds the government is going to supply, the future is truly uncertain for the previously giants of the American economy. Recession has hit and it hit hard, an most agree that it’s gonna be here for quite some time. President Obama promised to support the big three but industry analysts are saying the big three might not be three anymore in the coming years to come. Overtaken by the Japanese, the big three have given up on the ratings and re-focused their energy on their ultimate fate during this recession.
They have already closed international plants, reduced their personnel and trimmed down the hours people go to work but it still isn’t enough for them to continue operating. They are some of the biggest companies in the US but they have long been in trouble as the auto industry collapsed and got stiff competition from abroad. Their fate next year would be decided by the bailout they get and how they talk amongst themselves to revive their industry. Only time will tell, and we could only wait at what these industrial giants come to this coming year.

Corvette ZR1

American car fans are expected to be wowed by new car models from various American car makers next year.

General Motors (GM), for instance, will be officially launching Chevrolet Corvette series at the North American International Auto Show in Detroit in January 2008. Tagged as the �American Supercar,� the Corvette ZR1 has been reported to have a supercharged engine that can produce at least 620 horsepower. Its two other buddies, the Corvette base model and the higher performance Corvette Z06, are powered by a 6.2-liter, 430 horsepower V8 and a 7.0-liter, 505 horsepower engine, respectively.

Chrysler, on the other hand, is not one to be left behind. The famous car company will be unveiling three concept vehicles, also at the Detroit Auto Show slated in January 2008. These are the ecoVoyager, the Jeep Renegade and the Dodge ZEO. The winning factors of the new concept vehicles are their electric motors, long passenger cabins and short hoods.

How is that for a start? I�m sure I�m not the only one thrilled by now.

Whether you are looking for a truck, SUV, or a luxury vehicle, Hummer cars is the world’s number one choice of brand for car fanatics or enthusiast nowadays. This magnificent automobile has all the information you need to know available not only on their website but in different search engines. Equipped with features like the manufacturer recommended a retail value, which starts from $54,110.00 you will be able to bargain a better car price at your nearest dealership. Hummer cars highlight enough room for 5 person along for the ride, Automatic transmission selections, engine choices and four wheel drive trains.

At USD 100 per barrel of oil, who would want to buy a Ford Expedition? Ford’s market research found that 92% of Expedition buyers used their vehicles for family vacations, 60% for carrying outdoor equipment, and 84% to carry passengers behind the first row (with 80% carrying three or more behind the back seat). With the latest F-150 inspired redesign of the Expedition, Ford is zeroing in those “core SUV customers” who really need a full-size SUV, and hope to sway some customers away from GM’s new T9000 platform full size SUVs. All versions are powered by 300 horsepower 5.4 liter V-8 engine teamed up with a new six speed automatic transmission and Eddie Bauer comes with four-wheel drive.

This is the time where the automotive industry is continuously seeking ways to remain competitive. If before increasing car sales through innovations and marketing strategies is the only thing that many carmakers concentrate on, now they are into more serious business strategies to remain afloat. Take for example the case of Chrysler.

According to Leftlane News, Chrysler has recently announced plans to convert its retail locations into stand-alone service centers to consolidate its dealership. Chrysler look at the idea with optimism saying the move is intended to keep its service at the highest level.

I find it strange that Chrysler has to resort to this kind of tactic if only to consolidate its dealership. Could it just be some kind of a cost-cutting effort? I wonder how the dealerships will react. Will they buy the idea or not?

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