US Automakers to Get Closer to Collapse in 2009, Analysts Say

The United States government provided financial assistance to them. Most Americans supported them in their race for money. But this may not be enough to rescue the three struggling American automakers, analysts predicted. Automotive forecasting firm J.D. Power and Associates said that United States auto sales in 2009 may fall around 13 percent, which means some automakers may not revamp their production line even with government assistance. Total light vehicles sales are expected to fall to 11.4 million units, the analysts said according to Autonews.

"We believe we're near the bottom, or at the bottom," said Finbarr O'Neill, J.D. Power's president. "The market will come back, but it won't come back to where it was before. There's a lot of speculation about who's going to win and who's going to lose. Let's maintain our sense of humor folks. We're going to need it"

Auto sales in North America are expected to fall about 12.3 percent while those in Europe should follow the same negative trend and drop 14.9 percent. South America and Asia are expected to be affected too, with sales down 3.9 and 2.6 percent, respectively. On the other hand, 2010 auto sales may grow to as much as 13.4 million units, analysts estimated.

US automakers are currently experiencing the toughest period in the last decade, with sales plunging even with government assistance.

However, all three large US-based companies seem to be committed to their initial plan to focus on fuel-efficient and small-displacement engines, just like their European fellows, in order to remain in business. Ford for example, gave us a glimpse of its future lineup at the 2009 North American International Auto Show as it confirmed that several European models will arrive in the North American market in the next few years.