| In 2005 we certainly saw a swing in the momentum | | | | go. It is complete devastation for many regions |
| of the US Automakers, as fuel prices continued to | | | | relying on their auto-manufacturing sector to maintain |
| rise, the most popular SUVs fell out of favor. The | | | | economic growth. Many of these regions maintain |
| SUV is a very high profit product and as consumer | | | | 17-25% of their jobs in the manufacturing industry |
| demand fell so did the profits of the US Automakers. | | | | and it does not appear that retailing or service |
| Many SUV models are 3-times more profitable than a | | | | sectors can make up that difference or come close |
| standard car, meaning they would have to sell three | | | | to that level of salary wages and benefits.2006 will |
| cars to equal the same amount of profit as selling | | | | force the US Automakers to take this opportunity to |
| just one SUV.Some have claimed that for not learning | | | | downsize, cut costs, readjust their strategy, go back |
| our lessons of history the US Automakers are | | | | to core businesses and start new companies that can |
| repeating the Deming Years, as the Toyota Tercels, | | | | make the next generation of vehicle; the Hybrids. |
| Datsun Hatchbacks and Honda Cars stole the show, | | | | We will see many more hybrid models towards the |
| as American Consumers traded in their Pontiacs, | | | | middle of 2006 as the 2007 models start arriving at |
| Oldsmobiles, Buicks and Cadillacs. But in the past eight | | | | the dealerships. We will see consumers take |
| years the US Automakers had one hell of run with | | | | advantage of the tax incentives to buy more |
| their light trucks, SUVs and Mini-Vans.Indeed also of | | | | fuel-efficient and hybrid vehicles thru 2007. Innovative |
| concern is the mounting healthcare costs, | | | | technologies in fuel-efficient diesels will also be |
| underfunded pensions, high paying Union jobs and the | | | | introduced and have remarkably increased fuel |
| Delphi Bankruptcy. Another issue is the older more | | | | economy. Capacity will be cut, as well as dealer |
| restricted factories cannot retool for new models as | | | | consolidation and franchise terminations of auto |
| fast as the Modern Robotic Factories, nor can the | | | | dealerships.We will witness a re-aligning of laws and |
| older factories put out the sheer volume of vehicles | | | | reneging of pension promises, along with replays of |
| and certainly not even close to the same | | | | sales techniques, incentives and dealer/manufacturer |
| efficiency.Robotic Factories can produce far more | | | | sponsored sales programs. Since the economy is |
| cars than the World Wide demand for Automobiles | | | | strong going into 2006 we will see year end sales |
| and the US Automakers are not the only ones who | | | | about the same as 2005 providing fuel prices do not |
| have these superior technologically advanced robotic | | | | peak too many times due to artificially induced supply |
| warehouses, factories and distributions chains. Daimler | | | | crisis events and fuel future market maker players |
| Chysler, Honda, Nissan, Toyota, Volkswagon and | | | | running up barrel prices on conveniently contrived |
| even the newest brands in China, India and South | | | | fictitious news near or on 3-Day weekends. 2006 will |
| Korea all have them too.What is the answer from a | | | | a very interesting year and will take some creative |
| business standpoint? Cut capacity at the costliest | | | | and hard hitting cost cuts for AutoMakers who play |
| plants, those factories using human labor and thus | | | | in a survival of the fittest high stakes industry. Think |
| from a human standpoint it is indeed a disaster as | | | | on this.Lance Winslow - Online Think Tank forum |
| 60,000 high paying Union Auto Workers are being let | | | | board. |