By on November 24, 2009

He looks alive. Picture courtesy zarathoestra.files.wordpress.com

Think everything will be hunky-dory by, well, 2012? (Watch the  movie.) Fitch Ratings thinks the U.S. auto industry won’t get back on its feet anytime soon. Worse, the industry may be caught in an “airline-style” cycle of repetitive bankruptcies because of weak sales and a glut of production capacity. It is unusual for a U.S. airline (and many elsewhere) to not be in bankruptcy or not have been at some point.

Amongst the rating agencies, Fitch is the only halfway good one. They were the lone voice that had warned against the dangers of the collateralized debt obligations that brought the world to the brink of disaster.

In a report cited by Reuters, Fitch says that high fixed costs, the lengthy periods required to develop new products and chronic overcapacity will leave the industry “littered with failures—plants, product lines, brands and companies.”
(Read More…)

Recent Comments

  • Re: Ace of Base: Honda Fit LX

    CoreyDL - We only need four colors. Black, silver, silver, and black.
  • Re: Ace of Base: Honda Fit LX

    DevilsRotary86 - “Sometimes a manufacturer churns out a base trim that is — all things considered — the primo choice for that particular model. Here’s an example.”...
  • Re: Ace of Base: Honda Fit LX

    Matt Foley - Rear drum brakes are fine until they need service. First you back off the starwheel adjuster by blindly flailing around through a tiny port in the backing plate,...
  • Re: Ace of Base: Honda Fit LX

    tsoden - possibly… I still hate that Honda doesn’t offer better colour options for the lower trim models. The Red is nice, but come one… three colours???
  • Re: Next Mustang Shelby GT500 Will Beat Hellcat’s Horsepower: Report

    DenverMike - Guys in their early 20’s don’t want the jobs that can get them the GT500, Hellcat, ZL1, etc. That would...
  • Re: 2017 Mitsubishi Mirage G4 Review – It’s Fine

    bumpy ii - The suspension is your standard strut front/torsion beam rear, so there won’t be any miracles here. The suspension was tuned for...
  • Re: Ace of Base: Honda Fit LX

    DevilsRotary86 - They used to come from Guanajuato in 2015 and 2016. They are now coming from Japan again. The HR-V has been such a hit that Guanajuato is now producing...
  • Re: Ace of Base: Honda Fit LX

    Macca - That struck me as an odd statement as well. Just looking at Honda’s CR-V, it offers 37.2 cu ft with the rear seat *up* and 70.9 with them folded. Most of the other...
  • Re: Long-term Tester Update: Heading Down The Homestretch With The FiST

    JohnTaurus_3.0_AX4N - I know this egotistical jackass who just happens to be president of his HOA. When I lived there, it was just a...
  • Re: Ace of Base: Honda Fit LX

    probert - I’ll tell you, it’s classic Honda – a willing engine and soft but controlled suspension. Set it in a curve and it will hang on for dear life -and...

New Car Research

Get a Free Dealer Quote

Staff

  • Contributors

  • Vojta Dobes, Czech Republic
  • Matthew Guy, Canada
  • Kamil Kaluski, United States
  • Seth Parks, United States
  • Ronnie Schreiber, United States
  • Bozi Tatarevic, United States
  • Chris Tonn, United States
  • Moderators

  • Adam Tonge, United States
  • Kyree Williams, United States

Get No-holds-barred, take-no-prisoners Automotive News in your Facebook Feed!

Already Liked