by CULSBlogger
23. December 2011 02:06
For the first time since 2004, all three major American automakers expect to post a profit for 2011!
Though reports are not yet filed and final, General Motors expects to post a 26 percent increase in profits to roughly $6.1 billion. Ford will finish at $7 billion, up from $6.6 billion in 2010. Even Chrysler, which posted a loss last year, will end 2011 on a high note.
To top off these landmark figures, automotive experts are forecasting strong industrywide sales in 2012 and beyond. Some estimates predict that 2012 numbers will land between 13.5 and 14 million, and sales may reach 15 million by 2014. As Jesse Toprak of the website TrueCar told CNN.com, “In terms of profitability and outlook, this is the best conditions we’ve had for the U.S. auto industry in a long, long time.”
This is a tremendous turnaround from the recession, which began in 2008 and nearly marked the collapse of GM, Ford and Chrysler. Federal bailouts and bankruptcies in 2009 sustained GM and Chrysler, while Ford was able to squeak by on funds it had acquired prior to the economic crisis. Yet, with consumer credit in a strangle hold, waning demand and inventory issues, the future of American automakers was still in question.
What do you think is the biggest factor in these reports? Is the profitability due to increased quality, credit availability or something more? Let us know!
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