Can U.S. automakers maintain their momentum in 2011? (Don't look now, but Detroit's on a roll)

Los Angeles Times ^ | 01/12/2011 | Jerry Hirsch

[SeekAndFind]

Reporting from Detroit —

Detroit's on a roll. But can it last?

American auto brands Chevrolet and Ford are outselling Toyotas in the United States for the first time in years, thanks to a new stable of better designed and more reliable cars. General Motors Co., meanwhile, has become the top foreign automaker in the fast-growing Chinese market.

At the same time, painful cost cuts — including trimming employment and health expenses, and rewriting union contracts — have fattened the bottom line for domestic automakers, with General Motors and Ford Motor Co. earning nearly $4 billion combined in their most recent quarterly reports.

That's a figure that was once "unimaginable" considering that total U.S. auto sales were only 11.6 million last year, still near historic lows, said David Cole, a longtime industry analyst and chairman emeritus of the Center for Automotive Research in Ann Arbor, Mich.

And that's why the mood is decidedly upbeat among the executives who are gathering this week in Detroit for the North American International Auto Show.

"The auspices are a lot better than they were a year ago," said Sergio Marchionne, chief executive of Chrysler Group, which is gaining market share and expects to move back into the black this year after narrowing its losses steadily last year.

Still, given Detroit's long decline from its heyday in the 1950s and 1960s, some are wondering whether the turnaround is a momentary blip or a sustainable change.

Rising oil prices could topple the economy into another recession. Upcoming United Auto Workers union talks could turn into a fight by workers to regain benefits lost during the U.S. industry's restructuring. Foreign automakers, especially Toyota Motor Corp. and Honda Motor Co., could recapture their verve and attack the market with new models and attractive pricing.

[Zakeet]

Just last week, Government Motors was criticized for forcing vehicles on their dealers. In other words, they are growing by building inventory rather than sales to end customers.

But I'm sure that will all turn around soon with the arrival of the Volt.

[pnh102]

Screw Government Motors. I am sick of having my money poured into this sorry excuse for a car company. Same goes with Chrysler. My main problem with considering Ford is that I would be supporting the UAW if I bought a USA-made vehicle from them. I’d only buy a Ford if it was made outside of the USA. Only then will I be assured that I am not helping the UAW in making a purchase.

[Venturer]

I would say that the Government attack on Toyota had more to do with this than anything else.

The Government publicised and hyped every Toyota recall like the cars were death traps while ignoring the fact the American cars were getting recalls also.

[ThePatriotsFlag]

My, how people forget. Why would they want to contribute the the union’s pension funds by buying a GM car? I like to look at them, and watch them go by ... pretty. But buy one? You’ve got to be kidding, I wouldn’t “touch” a GM product ... and am about to put my money where my mouth is with a $40,000 NON GM purchase of a nice big NON GM SUV.

[Beagle8U]

“I’d only buy a Ford if it was made outside of the USA. Only then will I be assured that I am not helping the UAW in making a purchase.”

Sorry, Ford is UAW in Canada too.