Auto Warranty News | Auto Warranties – gm

Tag Archive


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.

See Also

General Motors May Face Bankruptcy

Unless the United Auto Workers union accepts concessions that enable GM to save money right now

Trimming the expenditures may be the only thing that can save GM.  In fact, industry analysts predict that their days are numbered unless the expenses go down.

Analysts say General Motors faces bankruptcy unless the United Auto Workers union accepts concessions that enable GM to hunker down as a smaller business.

And they contend the twin crises at GM and bankrupt auto parts supplier Delphi eventually could reshape much of the state’s 125,000-employee auto industry. It’s no wonder. GM and Delphi are huge.
With 12,000 workers in the state, GM is Indiana’s largest industrial employer after drug maker Eli Lilly. Delphi is No. 3.

What remains to be seen is whether or not unions and internal struggles will prevent that from coming to fruition. 

See Also



1-800-419-3499
Fax 1-800-615-0366
E-mail: info@autowarranties.com