U.S. Auto Industry Shaken

Where were you?

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When word got out that President Obama himself was going to announce both Chrysler's filing for bankruptcy protection and its ultimate protection under Fiat's wing, it was one of those "where were you when you heard the news?" moments. Me? Just pouring a second cup of coffee when my BlackBerry vibrated early Wednesday morning. And it turns out I was going to need that second cup.

The U.S. auto industry changed at that moment in a very profound way. No one knows if the bankruptcy courts will approve Obama's plan, or if consumers will consider the purchase of a brand in bankruptcy, or if the eventual tie-up with Fiat will deliver new products that consumers will gravitate toward in years to come. Big questions that underline just how big the dice are that Fiat, Chrysler and Obama are playing with.

And the next deadline has GM's name on it.

In striking contrast to this dry yet powerful news is the fact that some equally powerful products are starting to hit your local showrooms. The cover of this month's Motor Trend magazine says it all, with the new Chevrolet Camaro, Ford Mustang and Dodge Challenger on test. Can it get any more "American" than that? There is an equally intriguing matchup warming up on the other side of the vehicular spectrum with the all-new Toyota Prius, Honda Insight and the Ford Fusion hybrid all vying for your high-MPG "green" greenbacks.

My point is that the auto industry is definitely shaken, but also very stirring.

Posted on 2009-05-05 | Permalink | |

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