With the decline in the US economy, the Asian markets have witnessed a steep decline in their auto share price as well. The sales of automobiles failed to recover, subsequently slowing down the speed of accelerating fiscal growth. The situation has driven analysts to estimate inferior rates for light-vehicle delivery for the current and next financial year.
The two companies like General Motors and Chrysler have already warned the federal government and the shareholders that there is a huge chance of bankruptcy. If they are not provided with help now then they will surely die out within a few days. The share prices will also become very low as much of the shares will be sold off by the users. The investors who had previously invested money on the company shares fear that with the mother company all the other subsidiaries will also shut down like the tires manufacturer and supplier etc.
The US stock market went so low that companies like Chrysler and General Motors do not have the minimum credibility to take a loan in the near future. Ford Motors remained a little above the line with the credibility of signing up for a loan. In the United States, car sales declined rapidly, affecting both foreign and US based car manufacturers.
Although the US automotive market share declined from 70% to 53% in 2008, yet the global volume increased, especially in Europe and Asia. Since 1955, the American automotive industry has turned out to be profitable, except the years following wars and recessions.
The companies like Chrysler, Ford and General Motors are the largest and the most popular auto manufacturer in Canada and United States. Auto News alleges these renowned car manufacturers have been the largest producers of cars on the globe, and two of them continue to stay in the top five. Before taken over by Toyota in 2007, Ford held its second-ranked position for the last 56 years, and stood third in the sales of North American division.
All the three companies Ford, General Motors, and Chrysler closed down factories and manufacturing units and subsequently reduced cut off the employment levels. All these companies sent their employees to different places of their units to stop unemployment.
With the employment of 416,000 people by the Canadian and American auto parts manufacturers, the downturn of Detroit has been congenially shared by the automotive plant owners.
