The Ailing Domestic Car Companies
Economic Impact and Proposed Solutions
Motor vehicle sales continued to decline in late 2008, despite falling gasoline prices. Consumers were apparently deterred by poor economic prospects, plus the impact of reduced credit availability. The Detroit News observed that General Motors (GM) and Chrysler U.S. sales in November 2008 each fell by more than 40 percent compared to year-earlier results. Ford and the three leading Japanese companies (Toyota, Honda, and Nissan) did little better, with sales of each falling more than 30 percent. According to the Detroit News, the poor results occurred despite the predictions of "[m]any analysts [who] had expected better November sales because of…
