July 23, 2024
Chrysler Ford General Motors

Detroit’s Big 3 improving but have a long way to go

Mulally Marchionne Whitacre

We all remember the horrific news that came from Detroit around a year ago but now the headlines make for pretty much opposite extras to read all about.

Mulally Marchionne Whitacre
Leaders of the Big 3 Mulally, Marchionne & Whitacre

In short, Ford has recorded $2.1 billion in profits, General Motors managed to pay off the treasury loan early despite proving profits and Chrysler have managed to reduce their financial hemorrhage.

While these news are actually good, well maybe Chrysler isn’t getting it’s act properly together, but the news are still good even from them and the media seems to promote this, analysts remain skeptic about the complete recovery from this crisis.

According to Michelle Krebs, senior analyst for Edmunds.com, April will be coming in with a fall in overall sales and most likely the rest of the year will not be as good as it was until now and most likely the road ahead for the Big 3 from Detroit is still going to be very bumpy.

Biggest issues to concern each of the manufacturers vary as they are almost completely different. Ford is still in debt, the fact that they did not file bankruptcy will see them weighted down in future economic development. GM has some controversy spinning around the way they promote repaying the loan as they claim it to be the full loan while it is only part of it and was actually paid with the taxpayers own money as they have declared no profit. Chrysler on the other hand faces an even bigger problem, they have no important cars soon to be released and the influx of Fiat vehicles they promised will take time to become considerable.

Experts agree that the American manufacturers have made progress with their operations, products, cost efficiency and they may be helped by Toyota’s recent problems as consumers may change views on what reliability is.

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