The automotive industry is shot and this isn’t really news. GM is closer and closer to bankruptcy. Chrysler bailed out by Italian automaker Fiat. Ford, while doing great in Europe, has its share of disappointments. The outlook even changed for the worse as auto sales plunged 40% this February.
Even Japanese automaker giant Toyota is taking its share of the beating. Posting its first loss last year since going public, Toyota is now looking into getting funding from the Japanese government. Fellow Japanese automakers Honda Motor and Nissan also reported sales drop with Honda by 38% and Nissan by 37%.
Most automakers, American, Japanese, and European alike have reported production halts this year. While research and development are still working on future models, production of current models grind to a halt to clear stockpiled cars in lots and showrooms and save up on overhead and production expenses.
There seems to be a relation between economic mobility and physical mobility. Perhaps job cuts mean less people going to work. Or perhaps most are just scared to go out and buy a car on payment plans especially with the uncertainty of income streams in the coming months.
