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 Migrants Caught in No-Man's Land In French Port

The deaths of hundreds of migrants in the Mediterranean this week has only recast the spotlight on the perils of reaching 'Fortress Europe' More

Video Westgate Mall Attack Survivors Confront Painful Memories

On anniversary of terror attack, survivors discuss how they have coped with trauma they experienced that day More

New Hints That Dark Matter Exists

New evidence from International Space Station hints at existence of dark matter and dark energy 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.
Migrants Caught in No-Man's Land Called Calaisi
X
Lisa Bryant
September 19, 2014 5:04 PM
The deaths of hundreds of migrants in the Mediterranean this week has only recast the spotlight on the perils of reaching Europe. And for those forunate enough to reach a place like Calais, France, only find that their problems aren't over. Lisa Bryant has the story.
Video

Video Migrants Caught in No-Man's Land Called Calais

The deaths of hundreds of migrants in the Mediterranean this week has only recast the spotlight on the perils of reaching Europe. And for those forunate enough to reach a place like Calais, France, only find that their problems aren't over. Lisa Bryant has the story.
Video

Video Westgate Siege Anniversary Brings Back Painful Memories

One year after it happened, the survivors of the terror attack on Nairobi's Westgate Shopping Mall still cannot shake the images of that tragic incident. For VOA, Mohammed Yusuf tells the story of victims still waiting for the answer to the question 'how could this happen?'
Video

Video Militant Assault in Syria Displaces Thousands of Kurds

A major assault by Islamic State militants on Kurds in Syria has sent a wave of new refugees to the Turkish border, where they were stopped by Turkish border security. Turkey is already hosting about 700,000 Syrian refugees who fled the civil war between the government and the opposition. But the government in Ankara has a history of strained relations with Turkey's Kurdish minority. Zlatica Hoke reports Turkey is asking for international help.
Video

Video CERN Accelerator Back in Business

The long upgrade of the Large Hadron Collider is over. The scientific instrument responsible for the discovery of the Higgs boson -- the so-called "God particle" -- is being brought up to speed in time for this month's 60th anniversary of the European Organization for Nuclear Research, known by its French acronym CERN. Physicists hope the accelerator will help them uncover more secrets about the origins of the universe. VOA’s George Putic reports.
Video

Video Whaling Summit Votes to Uphold Ban on Japan Whale Hunt

The International Whaling Commission, meeting in Slovenia, has voted to uphold a court ruling banning Japan from hunting whales in the Antarctic Ocean. Conservationists hailed the ruling as a victory, but Tokyo says it will submit revised plans for a whale hunt in 2015. Henry Ridgwell reports from London.
Video

Video Russian Economy Reeling After New Western Sanctions

A new wave of Western sanctions is hitting Russia’s economy hard. State-owned energy firms continue to bleed profits and Russia’s national currency plunged to a new low this week after the U.S. and the European Union announced new sanctions to punish Russia's aggressive stance in eastern Ukraine. But as Mil Arcega reports, the sanctions could also prove costly for European and American companies.
Video

Video Belgian Researchers Discover Way to Block Cancer Metastasis

Cancer remains one of the deadliest diseases, despite many new methods to combat it. Modern medicine has treatments to prevent the growth of primary tumor cells. But most cancer deaths are caused by metastasis, the stage when primary tumor cells change and move to other parts of the body. A team of Belgian scientists says it has found a way to prevent that process. Zlatica Hoke has more.
Video

Video Mogadishu's Flood of Foreign Workers Leaves Somalis Out of Work

Unemployment and conflict has forced many young Somalians out of the country in search of a better life. But a newfound stability in the once-lawless nation has created hope — and jobs — which, some say, are too often being filled by foreigners. Abdulaziz Billow reports from Mogadishu.
Video

Video A Dinosaur Fit for Land and Water

Residents and tourists in Washington D.C. can now examine a life-size replica of an unusual dinosaur that lived almost a hundred million years ago in northern Africa. Scientists say studying the behemoth named Spinosaurus helps them better understand how some prehistoric animals adapted to life on land and in water. The Spinosaurus replica is on display at the National Geographic museum. VOA’s George Putic has more.
Video

Video Iraqi Kurdistan Church Helps Christian Children Cope find shelter in churches in the Kurdish capital, Irbil

In the past six weeks, tens of thousands of Iraqi Christians have been forced to flee their homes by Islamic State militants and find shelter in churches in the Kurdish capital, Irbil. Despite U.S. airstrikes in the region, the prospect of people returning home is still very low and concerns are starting to grow over the impact this is having on the displaced youth. Sebastian Meyer reports from Irbil on how one church is coping.
Video

Video NASA Picks Boeing, SpaceX to Carry Astronauts Into Space

The U.S. space agency, NASA, has chosen Boeing and SpaceX companies to build the next generation of spacecraft that will carry U.S. astronauts to the International Space Station by the year 2017. The deal with private industry enables NASA to end its dependence on Russia to send space crews into low Earth orbit and back. Zlatica Hoke has more.
Video

Video Future of Ukrainian Former President's Estate Uncertain

More than six months after Ukraine's former President Viktor Yanukovych fled revolution to Russia, authorities have yet to gain control of his palatial estate. Protesters occupy the grounds and opened it to tourists but they are also refusing to turn it over to the state. VOA's Daniel Schearf reports from Mezhigirya, just north of Kyiv.


Carnage and mayhem are part of daily life in northern Nigeria, the result of a terror campaign by the Islamist group Boko Haram. Fears are growing that Nigeria’s government may not know how to counter it, and may be making things worse. More

AppleAndroid