1970's Trouble In Motor City Happening Again

I'm beginning to wonder if the 70's are not happening all over again. Back then, the big three auto makers were having trouble staying afloat because import cars were being built better than American cars and most domestic cars were gas hogs that would not hold together much beyond fifty thousand miles. In the 70's, business got so bad at Chrysler that the government had to bail them out, or lose thousands of jobs. The government picked the jobs, big surprise! That time it worked out and Chrysler repaid the government and went on to make a bunch of money over the next 30 years.

Now gas is higher, even when adjusted for inflation, than it was in the 70's. I don't think gas lines are that far behind if things don't change in a hurry. Detroit is back to building a sub-standard product they can only sell with huge rebates or special promotions on incentives. Their profits are going down while sales are going up. That doesn't sound like a good business plan to me. It seems like history is repeating itself. Import cars are being sold for full price to a willing public, while domestic cars are being sold at big discounts just to move some merchandise. It will be interesting to see how this all plays out over the next couple of years.

Read more about Motor City:

Toyota Leads GM
Ford Motor Troubles
Big Three Down
Chrysler Pink Slips