Detroit’s big three, General Motors, Ford Motor Company, and Chrysler, have seen tough times in the past. But what they’re experiencing now is probably unprecedented. The top three US automakers are in a load of trouble. In this tough economic climate, car sales are way down. What’s worse is that GM, Ford, and Chrysler have a dearth of fuel-efficient small cars, something that the market demands right now because of the steady rise in fuel prices.
Inventories are swelling while sales are plummeting. Dealers are feeling the pinch, but not as much as a lot of autoworkers. With demand going down and with a huge volume of cars still around, the big three have shut down a lot of factories in the past few months. Workers are being laid-off left and right, and it doesn’t look like its going to stop anytime soon.
GM, Ford, and Chrysler have now even asked Congress for a loan to bail them out. The three companies have said that cash on hand is limited, and that should congress fail to give them some money, they will go under.
This is one of the most uncertain times for US automakers. What the future holds for them depends on whether they will survive this crisis or not.