Should We Cry For General Motors and Chrysler

I have been waiting to write this blog since both these car companies filed for bankruptcy. However, I wanted some proof before I proffered my theory about the so-called American Auto Industry. I subscribe to an on-line website called the Deal.com. In today's edition, there was a story about a recent survey by Grant Thornton, a leading consulting and accounting firm regarding the future of the American Auto Industry. The article stated that due to the restructuring of the American auto industry, foreign carmakers will produce more automobiles in the United States than the Big Three by the year 2012. Foreign automobile companies are expected to increase production by 20% during this period of time. The big impact will be felt by US automobile suppliers who have feasted at the trough of the Big Three for far too long. The US automobile suppliers will have to actually compete for new business with foreign automobile suppliers. There will be no allegiance by the foreign automobile companies to US automobile suppliers like the Big Three. I don't see why this news is a shock to anyone. When in the last ten years have you read about the Big Three opening a new automobile assembly plant in the United States. Yet, BMW, Nissan, Toyota, Honda, Hyundai, Mercedes-Benz and I may be missing a few, have all opened assembly plants during this period of time. Has it come down to "Buy American, Buy Toyota."