The car industry in the US has been steadily losing lots of money. General Motors and Ford are in no immediate danger of shutting down, but long term they are in serious trouble. GM and Ford stocks have both reached junk levels (GM reaching BB, the 2nd highest junk level - Ford reaching BB+, the highest junk level).
One of the most serious problems US car manufacturers face is that it is very difficult for them to sell their cars elsewhere around the world. Most US built cars do not reach emissions standards in other countries that would be ideal target markets. Arnie has been in trouble with the US car industry because of the introduction of legislation that will bring emissions standards in California up to the same levels as China currently has gradually over 11 years. Japan and Europe as well as many other countries have higher emissions standards than China. This inabilty to export the majority of cars produced in the US has hit the manufacturers hard, as have falling sales in the US.
Do these giants of the automobile industry have a future?
One of the most serious problems US car manufacturers face is that it is very difficult for them to sell their cars elsewhere around the world. Most US built cars do not reach emissions standards in other countries that would be ideal target markets. Arnie has been in trouble with the US car industry because of the introduction of legislation that will bring emissions standards in California up to the same levels as China currently has gradually over 11 years. Japan and Europe as well as many other countries have higher emissions standards than China. This inabilty to export the majority of cars produced in the US has hit the manufacturers hard, as have falling sales in the US.
Do these giants of the automobile industry have a future?