Big three U.S. carmakers, GM, Ford and Chrysler are in big trouble. Helping the U.S. auto industry is an important issue for the incoming Obama administration, hopefully to be tackled during the lame-duck session.
The idea of giving out US$25 billion from the $700 billion bailout fund to the ailing big three auto giants — General Motors, Ford and Chrysler — is stirring up opposition from those who will not allow any more handouts to one particular industry out of the many in need.
With this in mind the Guangzhou Auto Show in China’s wealthiest region became the battleground for survival as American carmakers showcased their new models.
As sales become sluggish in the U.S. and Europe, the big three are turning to China, an emerging market where they hope they can make up for losses. That seems to be the case with GM, which saw its global sales go up by 19 percent in the past decade largely backed by increases in China, Russia, India and Brazil.
According to experts China’s auto market, which ranks second globally after the U.S., is potentially the only market expected to grow in the coming years. Some are suggesting even a 5 percent annual growth for China’s auto market given that the nation’s economy keeps growing by over 8 percent each year.