Be the Detroit branch of the Boston Consulting Group predicts that by 2014 is one third of global demand in the four BRIC markets (Brazil, Russia, India and China). Other potentially powerful car markets are Iran and Indonesia.
The automotive industry crisis from 2008-2010 was part of a global financial downturn. The crisis affected European and Asian car manufacturers, but it was particularly felt in the American auto industry. The slowdown also affected Canada because of the Automotive Products Trade Agreement.
The automotive industry has been weakened by a substantial increase in the price of fuel in the context of the energy crisis, the 2003-2008 purchases of sport utility vehicles (SUVs) and pickup trucks, the low fuel consumption are discouraged. The popularity and the relatively high profit margins of these vehicles had the American “Big Three” automakers, General Motors, Ford and Chrysler, so they encouraged her focus. Serve with less fuel-efficient models to consumers to, sales began to slip. By 2008 the situation was critical, since the credit crisis put pressure on the prices of raw materials.
Car companies from Asia, Europe, North America and elsewhere have implemented creative marketing strategies hesitate to consumers as the most experienced double-digit percentage revenue declines to attract. Major manufacturers, including the Big Three and Toyota offered substantial discounts on their inventories. The big three faced criticism for their statements, which are seen rising irresponsible, given the fuel prices. North American consumers turned to smaller, cheaper, more economical imported from Japan and Europe. However, many of the vehicles actually perceived to be foreign “transplants, ” foreign cars manufactured or assembled in the United States to lower cost imports to be true.
The crisis in the United States is mainly defined by the government bailout of General Motors and Chrysler, while Ford secured a credit line in case they need a bridge loan in the near future. Car sales declined in the United States, both U.S. and foreign automakers. The bridge loans to more control of the U.S. auto industry also lead to criticism of its product range, product quality, high labor costs, wages, job bank programs and health and retirement benefits.
While the “Big Three” U.S. market share fell from 70% in 1998 to 53% in 2008, the worldwide volume rose in Asia and Europe. The U.S. auto industry has been profitable every year since 1955, except for those years of U.S. involvement in wars and recessions. U.S. car industry suffered profits 1971-73 during the Vietnam War, during the recession, fell in the late 1970s, which marked car industry is benefiting from 1981-83, during and after the Gulf War, when industry profits 1991-93, and during the Iraq War of 2001-03 and 2006-09. occur in these periods, the company, a lot of old debts.
Against financial losses, the Big Three have many factories shut down and drastically reduced employment. GM spun off many of the employees in certain areas into independent companies, including American Axle, Delphi 1994 and 1999th Ford turned Visteon in 2000. The spin-offs and other parts makers have shared Detroit’s declines, as well as the U.S. plants in Canada. Overall, the parts makers employ 416 000 people in the U.S. and Canada. General Motors alone is estimated to lose 51000000000 $ in the three years before the financial crisis had started in 2008.