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

  • jack4x: Especially when you ask yourself how many 20-30 somethings are buying $75K SUVs. The average buyer of one of...
  • ttacgreg: Just look at it this way. Tundra owners really don’t have to worry much about rock chips in the paint...
  • ttacgreg: Oh yeah, their testing appears to be quite objective.
  • SCE to AUX: I suppose if I have to ask the price, I can’t afford it.
  • theflyersfan: I never thought I’d type these words again, but finally, a Ford truck with a front end that...

New Car Research

Get a Free Dealer Quote

Who We Are

  • Adam Tonge
  • Bozi Tatarevic
  • Corey Lewis
  • Mark Baruth
  • Ronnie Schreiber