Big-3 to shrink

Foreign companies could match Detroit automakers in U.S. auto sales within five years if current trends continue, industry experts said Wednesday at a conference sponsored by the Detroit branch of the Federal Reserve Bank of Chicago.

General Motors Corp., Ford Motor Co. and DaimlerChrysler AG account for about 60% of all U.S. sales. But Asian automakers, led by Toyota Motor Co. and Honda Motor Co., are gaining ground fast.

GM and Ford will get smaller as they close plants and cut jobs in the next few years, said Sean McAlinden, chief economist for the Center for Automotive Research in Ann Arbor. GM has made a decision to move away from incentives, even if it means losing sales, he said.

"GM is going to become the size of Ford," McAlinden said. "And Ford's going to become the size of Chrysler. And Chrysler is going to become the size of Chrysler — if they're lucky." More at Detroit Free Press

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