Today, Chrysler sent letters to nearly 800 of its dealers telling them to close their doors. GM is now going on record saying that if it does file for bankrupcy, it will follow the same course of action as Chrysler. Toyota is going to get rid of 40% of its senior management. The only bright spot right now is Ford who claims that they will be profitable again in 2011.
What has happened to the auto industry? Like everything else in the financial world, there is no absence of opinions. Many say that the big 3 didn’t put enough effort in to innovating themselves. The newest cars were bigger gas wasters than past models in a world that is far more conscious of how much of the Earth’s resources are being used. That’s just one example.
Whatever you believe, the autos are in need of reinvention and as sad as it is to see a staple of American business dying a slow death, it may be long overdue. What the auto industry will look like in 5 years is up in the air but for now, if you’re thinking of investing in the autos, the only one I would even think about it Ford. If you ask me, even thinking about the other companies may cause you to lose money.