Detroit Three
The death of the Detroit auto industry has been greatly exaggerated (Apologies to Mark Twain). Despite plant closures, bankruptcies and bailouts, the Detroit Three - Ford, General Motors and Chrysler - appear to be mounting a comeback.
After receiving more than $50-billion in bailout money last year - including $10.5-billion from Canada and Ontario, General Motors has announced a $1.33-billion second quarter profit and is planning an IPO in the U.S., and may once again list its shares on the TSX.
Restructuring also seems to be paying off for Chrysler. The company sold 22,319 vehicles in July, 40 per cent more than a year ago. Even more significant, retail sales were up 50 per cent year over year, indicating less reliance on fleet sales.
Ford, considered to be the strongest of the three, is the No. 1 auto maker in Canada by sales. David Mondragon, President of Ford of Canada, says the company's focus is on "sustainable, profitable growth."
So what does this mean in a competitive auto industry? Toyota, once the darling of Consumer Reports with an untouchable reputation of reliability and customer satisfaction, and has had a rough year. How will the esteemed Japanese auto maker fare in the face of a Detroit industry intent in reinventing itself after years of raking in profits from large, gas-guzzling vehicles?
Jeremy Cato, Globe Drive's senior writer, was here earlier to talk shop. Click on the box below to read the discussion.