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How Did The Auto Industry Fare in 2005?

A Year In Review

Detriot’s news of late has been doom and gloom.  With strikes, low sales, and dismal growth, the auto industry doesn’t have much to celebrate.

General Motors Corp. Chairman and CEO Rick Wagoner sent a memo to workers in November assuring them bankruptcy isn’t an option for the world’s largest automaker, but concerns about GM’s financial health persist. The company recently announced a plan to cut 30,000 jobs and close 12 facilities by 2008. Next year, the automaker, which has a Fort Wayne plant, plans to sell a majority stake in its profitable finance arm, GMAC, to raise cash.

Ford Motor Co. is expected to announce its own restructuring plan in January. The nation’s No. 2 automaker had its share of turmoil this year, including an expensive bailout for its former parts division, Visteon Corp.

But, analysts say things are looking better for the coming year. 

Despite the gloom in Detroit, 2005 will end on a fairly high note. Analysts are predicting full-year sales of around 17 million vehicles, a healthy pace that has held steady over the past 6 years.

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Posted on Monday, December 26th, 2005 at 8:57 pm In Auto Warranty  


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