The Future of the Auto Sector in North America. Or Not.

Robert Farago
by Robert Farago
Canada’s Derosiers Automotive Consultants had a think about the future of the North American new car market. You can read the results of their analysis here, for no money down, no money per month, for no months. To make a pretty pdf short, the Detroit Three still have “an inferior business model from most perspectives.” In fact, “t is a huge leap of faith to believe that their strategy will work given historical precedent.” Uh-oh. “Unless the D-3 can turn around their market share losses then no amount of Government money can save all three of these companies. Best case is we end up with two Detroit based companies instead of three and there is a very real scenario where we end up with only one.” In other words, this could well be the most expensive game of musical chairs the Canadian and US government has ever played. OK, not ever. But in a long time.
Robert Farago
Robert Farago

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  • Matt51 Matt51 on Jun 24, 2009

    The key to survival will be quality low cost product. Just as it was in the Great Depression. The Koreans are champs in this regards. The Japanese are no slouches. The Europeans are so far out of it they don't count. Ford - Focus/Fiesta/Fusion probably won't keep them in the game. They don't stack up well against the Japanese or Koreans. GM - Cobalt, Cavalier, Malibu - Same problem as Ford, having one world class car is not enough to keep them in business. Chrysler - nothing competitive. More than likely, we will see Saturn under Penske, and some other startups, such as the Chinese, replace the diminished three. Odds are against any of them making it.

  • Anonymous Anonymous on Jun 25, 2009
    Dimwit : June 24th, 2009 at 6:09 pm The biggest asset that Ford has that *neither* the other two have is the complete revamp of their lineup, bought and paid for. That will pay dividends for at least four years while GM has a few bits and pieces and Fiatsler has Photoshop. Actually their biggest asset is they don't have the government directing their business.
  • Dougjp Dougjp on Jun 25, 2009

    Good report that covers pretty much everything. Yup. Derosier qualifies as one of the "Best and Brightest".

  • JeremyR JeremyR on Jun 25, 2009

    dolorean23, I see 3rd-generation (1986-1989) Accords driving around Denver all the time. In fact I drive one myself (`87). Cheers, Jeremy