Global Auto Industry

The global automotive industry is facing severe challenges due to the financial crisis. Consumer demand for cars has dropped sharply around the world. Automakers like GM, Ford, Chrysler, and Toyota have posted major losses. However, the crisis also provides an opportunity for innovation and collaboration. Automakers need to shift from competition to cooperation through partnerships and alliances to share costs of R&D, production facilities, and regulatory approval. Financial restructuring and lean manufacturing will also be needed to reduce business risks and costs. Governments are assisting the struggling industry to prevent economic damage.