Tuesday, April 30, 2013
Chrysler's Poor Earnings a Blip or a Portent
This article goes over how the automobile market's current happenings after the recession. For awhile, Chrysler was posting great profits (net income was nine times higher than it was in 2011) but now there has been a 65 percent drop in earnings. This occurrence was apparently foreseeable as the number of incentives that dealers had to provide in order to curb decreasing demand have been increasing. Ultimately it might just be that automobile demand just cannot be sustained at pre-recession levels. With new outlooks on cars and how often vehicles should be used, unless there is another shift in consumer outlook, there just might not be a need to have a huge output of American cars.
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This automobile market is interesting with a not so great economy, the buying of cars will obviously change. The used car industry probably has been doing decent, something to maybe look at.
ReplyDeleteWith the recent changes done by the American car companies, the fact that some are seeing a huge lose comes as a surprise to me. Consumer seem to be attracted to the new european influenced designs on new American cars, so sales should be higher than usual. It could just be Chrysler struggling to appeal to the consumers tastes in design and budget.
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