Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
US Automobile Crisis <br />
Start of the Automobile Crisis<br />By August 1929 Just Prior to Great Depression Car Crisis Begins<br />From 1930 to 1932...
Common Cars Built Through 1950-1970<br />1953-Chevrolet Builds Corvette and BelAir<br />1955- Ford Designs Classic Thunder...
1960’s Model Ford Mustang<br />1960’s Model Chevy Corvette<br />
Recent History:Three Reasons for Auto Crisis<br />Health Care<br />GM spends $5 Billion on Health Care Annually <br />Ford...
Fall Of Production<br />
Fall Of Production<br />
Tough Competition<br />Honda and Chery Motor Corp. on Rise<br />Honda Posts 17% Sales Increase Since Beginning of 2009<br ...
Original Bailouts<br />General Motors and Chrysler Seek Bailouts From Federal Government<br />$15 Billion Bailout Proposed...
Future Bailouts<br />GM Request $16.6 Billion More in US Aid<br />GM to cut Saturn, Hummer, and SAAB Lines From Business<b...
The Chrysler Situation<br />Taken Off NYSE Following Take Over By Daimler In 1998<br />Private Equity Firm Ceberus Buy 80....
Chrysler And Fiat<br />Fiat Are Currently In Talks With Chrysler Over The Possibility Of Gaining a 35% Stake<br />Deal Wou...
GM’s Options<br />
Ford Strays From Pack<br />Ford Receives No Government Aid<br />Ford Remortgaged Plants To Raise $26Billion Cash In 2006<b...
Others Effected By Auto Industry Crisis<br />Delphi Corp. Declares Chapter 11 Bankruptcy<br />Parts Division Supplier to G...
Other Governments Effected<br />GM Would Sell Opel Stakes to Get Aid From Europe<br />Sale of Opel, the GM unit in Europe,...
Upcoming SlideShare
Loading in …5
×

Automobile Crisis

596 views

Published on

Presentation highlighting the crisis undergone by automobile dealers

  • Be the first to comment

  • Be the first to like this

Automobile Crisis

  1. 1. US Automobile Crisis <br />
  2. 2. Start of the Automobile Crisis<br />By August 1929 Just Prior to Great Depression Car Crisis Begins<br />From 1930 to 1932 Sales dropped 73.2 percent<br />Similar to Our Crisis Because People Stopped Buying Cars Due to Extremely Poor Economy<br />1970 “Gas Scare” triggers another American Car Crisis<br />Large American Cars Ineffective <br />Majority of Cars on Production Line were larger cars<br />Smaller Cars receive large demand<br />
  3. 3. Common Cars Built Through 1950-1970<br />1953-Chevrolet Builds Corvette and BelAir<br />1955- Ford Designs Classic Thunderbird<br />1959- Chevrolet introduces the Corvair and the El Camino<br />Both Cars had V-8 engines<br />1960- Ford Builds Falcon<br />1960- Chrysler Designs Valiant<br />1964- Chrysler Builds Barracuda<br />1965- Ford Introduces popular Mustang<br />1966- GM introduces classic American muscle cars<br />Pontiac Firebird and Chevrolet Camaro<br />
  4. 4. 1960’s Model Ford Mustang<br />1960’s Model Chevy Corvette<br />
  5. 5. Recent History:Three Reasons for Auto Crisis<br />Health Care<br />GM spends $5 Billion on Health Care Annually <br />Ford and Chrysler have health care obligations of $90 Billion <br />Auto Industry can be described as a “health insurance provider that happens to make cars.”<br />Credit Crunch<br />Lack of Good Credit for Potential Cars Buyers<br />Cannot Get Loans to cover loss of car sales <br />Low Efficiency Cars <br />Gas Guzzlers Commonly Purchased Car<br />
  6. 6. Fall Of Production<br />
  7. 7. Fall Of Production<br />
  8. 8. Tough Competition<br />Honda and Chery Motor Corp. on Rise<br />Honda Posts 17% Sales Increase Since Beginning of 2009<br />Honda Accord Posts 38% Sales Increase<br />Chery’s Six Sigma Production Systems<br />Struggling Toyota Still Manages Better Than Detroit Motors<br />Sales Worldwide Better Than GM, Ford, and Chrysler<br />Toyota Leads US Sales For First Time in History<br />However Toyota Still Asks For Aid<br />
  9. 9. Original Bailouts<br />General Motors and Chrysler Seek Bailouts From Federal Government<br />$15 Billion Bailout Proposed by Congress<br />December 10th House passes the bailout bill to GM and Chrysler<br />Bill Fails due to majority vote<br />TARP (Troubled Asset Relief Program) to the rescue<br />Car Czar<br />By January General Motors And Chrysler Receive Government Aid Of $17.7 Billion<br />
  10. 10. Future Bailouts<br />GM Request $16.6 Billion More in US Aid<br />GM to cut Saturn, Hummer, and SAAB Lines From Business<br />Pontiac On Verge of Being Cut<br />Also Laying Off 47,000 Jobs<br /> GM and Chrysler Must Submit Recovery Plans to Receive Government Aid By 31st March Or Face Having To Return Any Aid Received To Date And The Possibility Of filing For Bankruptcy<br />
  11. 11. The Chrysler Situation<br />Taken Off NYSE Following Take Over By Daimler In 1998<br />Private Equity Firm Ceberus Buy 80.1% And Take Control In 2007<br />Daimler Continues To Hold 19.9% Stake<br />Ceberus Is A Hedge Fund Who Holds Controlling Or Significant Minority Interests In Many Large Commpanies<br />
  12. 12. Chrysler And Fiat<br />Fiat Are Currently In Talks With Chrysler Over The Possibility Of Gaining a 35% Stake<br />Deal Would Allow Fiat Access To US Dealer Network<br />It Would Also Give Chrysler Access To Platforms For Smaller More Efficient Cars And Access To Fiats Global Distribution Network<br />
  13. 13. GM’s Options<br />
  14. 14. Ford Strays From Pack<br />Ford Receives No Government Aid<br />Ford Remortgaged Plants To Raise $26Billion Cash In 2006<br />Able to Use This Cash to Help Through Recession <br />Volvo on Verge of Being Sold Which May Raise Up To $30Billion<br />If Turnaround Plans Fall Through…<br />GM and Chrysler May Be Forced to Declare Bankruptcy<br />Ford Has More Options and Flexibility Available<br />
  15. 15. Others Effected By Auto Industry Crisis<br />Delphi Corp. Declares Chapter 11 Bankruptcy<br />Parts Division Supplier to GM, Chrysler And Many Others<br />Daimler Post Huge Losses Due to Chrysler<br />50,000 People Laid Off and Counting in Detroit<br />
  16. 16. Other Governments Effected<br />GM Would Sell Opel Stakes to Get Aid From Europe<br />Sale of Opel, the GM unit in Europe, would rewarded GM in $4.18 Billion from Germany<br />Sale of Volvo Could Grant Ford Approximately $30 Billion From Chinese Company<br />

×