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What's Going To Happen?



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 »  Home  »  Blogs  »  What's Going To Happen?
Ken Freund

I’ve always been crazy about anything with an engine.

After years of pestering my father, he finally let me drive a car - at nine years of age. At 14 I taught myself to drive stick shifts and then how to ride motorcycles. Later, I also learned to fly and have had my pilot’s license for 22 years. Working on, riding, driving, restoring, photographing and writing about all these wonderful machines has always been my passion. I've been an auto vo-tech and smog test instructor, certified master technician, vehicle inspector, shop foreman, service manager, service director, and shop owner. Over the years I’ve owned about 35 bikes and 50 cars and trucks, a lot of which I wish I had never sold!

 

View all blogs by Ken Freund...
What's Going To Happen?
By Ken Freund | Published  12/4/2006

 

Fuel prices have eased a bit, and probably as a result, sales of light trucks and large autos have picked up somewhat in the last month or so. However, what's down the road for America’s Big-3? Not very promising, as it appears to me.

 

Ford seems to be in the most immediate peril. Ford’s “Way Forward” restructuring plan seems to have stumbled and the company is shedding about 38,000 union workers, along with many white-collar personnel, far more than originally announced. Sales of many Ford models are below projections and I’ve heard several rumors that some of Ford’s suppliers and creditors are trying behind the scenes to keep the company from going into bankruptcy.

 

Over at General Motors, Buick, Cadillac, Chevrolet, and Saturn sales were up for November, compared to 2005. Additionally, sales of large SUVs and full-size pickups have improved lately, but if fuel prices go up again this trend will probably end quickly. We’ll have to wait and see what effect Kirk Kerkorian’s sale of GM stock and subsequent forfeit of control on the board of directors will have on the corporation.

 

Daimler-Chrysler’s U.S. operations are struggling as well. Although the new Sebring is expected to do well in the market, sales of the 300 have cooled down and the new Jeep Compass and Dodge Caliber have been getting bad reviews at a time that the company needs a hot seller. If it wasn’t for the German connection and their deep pockets, things might be worse for D-C.

 

A century ago, there were so many auto manufacturers in the United States it would be difficult to list them all on a page. As vehicles have become more complex (and therefore more expensive to design and build) and buyers more finicky, we may experience the loss of one or more of the remaining domestic automakers. What’s your take on this?

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