News / USA

Detroit Auto Show Hints at US Auto Industry Recovery

Kane Farabaugh

The 2012 North American International Auto Show has opened in Detroit, Michigan.  The annual showcase is the auto industry's premier event to showcase new cars and technology. This year's show comes amid stronger sales for Ford, Chrysler and General Motors. But despite new growth, analysts say business is not entirely back to normal as high unemployment nationwide continues to weigh on potential customers.

Ford CEO Alan Mulally's message at a launch event for the newly redesigned Ford Fusion sedan was direct: His company is profitable and growing.

"We are committed to 12,000 new jobs in our U.S. manufacturing facilities and we are on plan to have them filled by year end," said Mulally.  "We are also adding 3,000 new jobs in Asia-Pacific."

Ford's expansion comes after several years of profitability and marks a dramatic change in an industry that shed tens of thousands of jobs in the last decade. But, under new contracts ratified in 2011 with the United Auto Workers union (UAW), the "Big Three" Detroit manufacturers - Ford, General Motors, and Chrysler - are all bringing more people back to U.S. assembly lines.

"The fact that we were able to bargain to have all these jobs and investment here in this country I think is positive overall for all the manufacturing," said Bob King, President of the UAW.

King says some shuttered facilities in the U.S. will re-open under the new agreements and more cars will leave the U.S. for foreign buyers.

"For many years, there was not much export of vehicles to other parts of the world. All three of the companies will be doing major exporting of vehicles from the U.S.," added King.

Although it seems like good news for the American auto industry, in the wake of several government-sponsored bankruptcies, University of Michigan Economics Professor Bruce Pietrykowski says the turnaround is incomplete and that auto economics are in danger of faltering once again.

"Most Americans don't have the kind of disposable income that they had in 2000," said Pietrykowski.  "Most Americans are either unemployed or have seen their wages actually fall from when the auto industry was reaching its peak sales year."

Pietrykowski says what is fueling recent sales in the United States is pent-up demand by customers who delayed buying a new vehicle during the recession. He adds another barrier to further progress for the U.S. auto industry is directly linked to Wall Street and the housing market decline.

"Access to credit is severely constrained now, so Americans are less likely able to afford credit to buy the automobiles and are much less willing to extend themselves financially in order to purchase automobiles," added Pietrykowski.

Which is why at this year's Detroit Auto Show, automobile manufacturers are marketing new, smaller, more affordable and more fuel-efficient vehicles. They are trying to reach out to potential customers still waiting to buy a new vehicle, as they continue to weather an uncertain economic climate.

You May Like

Video Miami Cubans Divided on New US Policy

While older, more conservative Cuban Americans have promoted anti-Castro political movement for years, younger generations say economically, it is time for change More

2014 Sees Dramatic Uptick in Boko Haram Abductions

Militants suspected in latest mass kidnapping of over 100 people in Gumsuri, Nigeria on Sunday More

Video Cuba Deal Is Major Victory for Pope

Role of Francis hailed throughout US, Latin America - though some Cuban-American Catholics have mixed feelings More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Sudan School Becomes Target of Aerial Attacksi
X
December 19, 2014 12:45 AM
The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video Sudan School Becomes Target of Aerial Attacks

The school dropout rate is at an all-time high in Sudan's South Kordofan state because many schools have been destroyed during the three-year civil war between the government and SPLA-N rebel forces. Adam Bailes visited Sudan's Nuba Mountains' region and reports many children are simply too scared to go to school
Video

Video VOA Reporter Tours Devastated Peshawar School

Islamist militants wearing military uniforms and strapped with explosives attacked a military run school Tuesday in the northwestern Pakistani city of Peshawar. At least 141 people were killed in the horrific attack, most of them young students. VOA reporter Ayaz Gul visited the devastated school and attended the funeral of the principal who courageously tried to save her students from the deadly attack.
Video

Video Nigerians Fleeing Boko Haram Languish in Camp Near Capital

In its five-year effort to impose Islamic law in northeastern Nigeria, the Boko Haram extremist group has killed thousands of people and forced hundreds of thousands to flee. Some of those who ran for their lives now live in squalor on the edges of the capital, Abuja. Chris Stein reports for VOA.
Video

Video Putin Says Russian Economy Will Emerge Stronger

Russian President Vladimir Putin has said his country's sinking economy will not only recover but also become stronger, despite falling oil prices and Western sanctions over Ukraine. VOA's Daniel Schearf reports.
Video

Video Detained Turkish Journalists Follow Teachings of US-Based Preacher

The Turkish government’s jailing of critical journalists has sparked international condemnation and is being seen as an effort to undermine the followers of an ailing Turkish preacher based in the United States. VOA religion reporter Jerome Socolovsky has more.
Video

Video ‘Anti-Islamization’ Marches Increase Tensions In Germany

Anti-immigrant rallies in Germany have been building in recent weeks, peaking Monday night in the city of Dresden where tens of thousands of people turned out to demonstrate against what they call the ‘Islamization’ of the West. Germany has offered asylum to more Syrian refugees than any other country, and this appears to have set off the protests. Henry Ridgwell reports from London.
Video

Video Aceh Rebuilt Decade After Tsunami, But Scars Remain

On December 26, 2004 there was an earthquake in the Indian Ocean so powerful it caused the Earth’s axis to wobble a few centimeters. Onshore on the island of Sumatra, the resulting tsunami was devastating. A decade later, VOA Correspondent Steve Herman reports from Banda Aceh, Indonesia, where although there is little remaining evidence of the physical devastation, the psychological scars among survivors remain.
Video

Video Refugees Living in Kenya Long for Peace in the Home Countries

Kenya is host to numerous refugees seeking safe haven from conflict. Immigrants from Somalia face challenges in their new lives in Kenya. Ahead of International Migrants Day (December 18) Lenny Ruvaga has more for VOA News from the Kenyan capital.

All About America

AppleAndroid