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Auto Industry Cyclicality: Difference between revisions
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* After the 2000s, GM continued to make what people saw as noncompetitive vehicles. GM was mainly selling poorly designed cars that were expensive to build. In the end, General Motors was put face to face with excess production capacity. . The company was known to focus mainly on profits from finance rather than building better vehicles and improving the current ones. Customer needs and expectations, innovation by competitors, and the availability of new technologies still didn’t force GM into making improvements.<ref>https://medium.failfection.com/general-motors-and-how-this-huge-company-lost-its-way-daeb4e01e7eb#:~:text=General%20Motors%20failed%20due%20to,Hummer%20was%20a%20big%20deal.</ref> | * After the 2000s, GM continued to make what people saw as noncompetitive vehicles. GM was mainly selling poorly designed cars that were expensive to build. In the end, General Motors was put face to face with excess production capacity. . The company was known to focus mainly on profits from finance rather than building better vehicles and improving the current ones. Customer needs and expectations, innovation by competitors, and the availability of new technologies still didn’t force GM into making improvements.<ref>https://medium.failfection.com/general-motors-and-how-this-huge-company-lost-its-way-daeb4e01e7eb#:~:text=General%20Motors%20failed%20due%20to,Hummer%20was%20a%20big%20deal.</ref> | ||
* The company had mostly fixed costs for its manufacturing process. When sales went down, the costs didn’t. This is what affected GM the most. The company couldn’t keep itself afloat or even manufacture vehicles if it cut costs. On top of that, General Motors was known for having fixed costs on union contracts. They had to respect the legacy of healthcare costs and company pensions even if they tried to cut down on costs in other ways. | * The company had mostly fixed costs for its manufacturing process. When sales went down, the costs didn’t. This is what affected GM the most. The company couldn’t keep itself afloat or even manufacture vehicles if it cut costs. On top of that, General Motors was known for having fixed costs on union contracts. They had to respect the legacy of healthcare costs and company pensions even if they tried to cut down on costs in other ways. | ||
=== <big>Best Selling Cars</big> === | |||
==== Europe ==== | |||
Volume segments such as minicars made significant gainsin 2009 thanks largely to government-funded scrapping incentives, while demand for large models nearly collapsed. | |||
See: https://europe.autonews.com/article/20100421/ANE/100419894/europe-s-2009-segment-winners-and-losers | |||
== 2001 Recession == | == 2001 Recession == | ||