Home » Articles
Car Articles
Read articles on cars and car industry. Get fully updated on all information related to cars. Read exciting happening in the Indian and Global Car industry, tips to help you and more...
Old Articles
Car Brands on the Brink of Extinction
The global recession has tremendously affected the car industry. Many car brands are on the brink of extinction, since the downturn has taken its toll over the car industry. Multiple reasons contributed to the present dwindling condition of the car companies that are on the verge of extermination. Few of them are declining car sales, credit crunch, unsupportive attitude of banks and financial firms, and most importantly less number of new car buyers due to layoffs.
These are putting massive pressure on the American car industry as it faces the worst year in more than a decade than it ever had. It is predicted that if the present economic condition continue to exist for few more months, it will take more car brands under its canopy apart from the struggling America’s big three - Ford, Chrysler, and General Motors. Let’s have a glance on few car manufactures that are facing a trouble to sustain their business in the uncertain market condition.
These are putting massive pressure on the American car industry as it faces the worst year in more than a decade than it ever had. It is predicted that if the present economic condition continue to exist for few more months, it will take more car brands under its canopy apart from the struggling America’s big three - Ford, Chrysler, and General Motors. Let’s have a glance on few car manufactures that are facing a trouble to sustain their business in the uncertain market condition.
Hummer
Hummer vehicles were first manufactured on the platform of the military High Mobility Multipurpose Wheeled Vehicle (HMMWV, or Humvee). The brand produces off-road vehicles that have high racing abilities. Hummer is the only brand in U.S. whose entire line up carry a low-range transfer case, relatively high-ground clearance, and off-road tyres. Hummer was commercially launched in 1992 and in 1998 it was taken over by General Motors. But presently, Hummer is riding on the rough roads of global recession. The receding demand for fuel guzzling SUVs in U.S. has put the brand in a trouble situation. Buyers are now opting for fuel efficient small cars and the company currently does not have such cars in its portfolio. Hence, the company is under a threat of extinction. General Motors has announced that the brand is under scrutiny and there is possibility that it will be either sold or shut down.
Saturn
Saturn is also a subsidiary of General Motors Corporation which came into existence in 1985. This brand was created to assist the Japanese and German imports in U.S. General Motors operated the brand Saturn outside the company’s territory for some time, however, the brand has its own assembly plant in Spring Hill, Tennessee and a separate retailer network.
Though the brand was not so popular in the market, it had received impressive sales in 1994. Rick Wagoner, ex-boss of General Motors had already foreseen the future of Saturn and hinted that there is high possibility of it closing because of restructuring plans. In April 2009, General Motors finally announced its plan to phase out the brand along with its Pontiac brand by the end of 2010.
Though the brand was not so popular in the market, it had received impressive sales in 1994. Rick Wagoner, ex-boss of General Motors had already foreseen the future of Saturn and hinted that there is high possibility of it closing because of restructuring plans. In April 2009, General Motors finally announced its plan to phase out the brand along with its Pontiac brand by the end of 2010.
Chrysler
Born in 1925, the brand was founded by Walter P. Chrysler and later moved to European market in 60s. As it was struggling with its business in 1979, it asked for help from the U.S. government. In 1987, Chrysler took over the Jeep and joined Daimler in 1998. But this venture did not proved fruitful and in 2007 the brand was again taken over by a private equity company called Cerberus. Chrysler’s business started falling by the end of 2008 signaling its hollow financial position. Though the company received a bailout package from the government for its survival, it is still at the risk of annihilation.
Saab
Saab is originally a part of Swedish Aeroplane Ltd. which is currently owned subsidiary of General Motors. It was established in 1937 and manufactured its first car in 1944. It took nearly 32 years to for the company to build a million cars. In 1998, it joined hands with Fiat but in the year 1990 General Motors purchased 50 percent stake which was then increased to 100 percent by 2000. Under the roof of General Motors, Saab underwent lots of problems because of improper platform and financial crunch. Since 1997, only one new global model has been introduced. Now realizing its fall General Motors plans to either close Saab or sell it.
Pontiac
General Motors is planning to discontinue its 83-year-old brand Pontiac by 2010. It was in the year 1926 the Pontiac brand was introduced by General Motors. The brand was a great success in the markets of America. The first Pontiac car christened as "Chief of the Sixes," was powered by 6-cylinder engine was rolled out in 1926 at New York Auto Show. It was in period of 30’s and 40 Pontiac introduced coupes, sedans and wagons in the low-to-mid price ranges. From mid-30s to the mid-'50s, Pontiac models were seen with a unique design known as "Silver Streak,". It was a set of art-deco-inspired chrome "speed lines" that ran up over the length of the hood to the base of the windshield. The company revealed that it could not think of any perfect strategy that would support save the Pontiac brand. Though it is tough decision it had to taken.
» Read more Articles On Car Brands
» Read more Articles On Car Industry
» Read more Articles On Car Sales
