Detroit big three legs, but big risks remain

Paul A. Eisenstein of the Detroit Bureau
About two-thirds of the total turnover of GM now come from outside North America, it signals a shift when he the convertible version, which introduced the most, that sport classic of American cars, the new Corvette stingray, in Geneva in March of this year.

General Motors reached a significant milestone last week, rather than the manufacturer, regaining the spot it on the much looked long S & P 500 stock index. The important step came just a month ahead of the fourth anniversary of the GM emergence from Chapter 11, insolvency, which probably would have destroyed the car manufacturer, if not for a $50 billion bailout.

There are other signs of GM the corner including may become sales, eagerly sought increase in its US market share - and the simultaneous rise in the share price, the finally the $33-level set during a November 2010 IPO has surpassed.

And GM not only among three major automakers Detroit. Ford has written a as great jump in sales, stock and share price, while Chrysler has maintained a steady increase in after month on the band, which has continued unabated, since it four years ago emerged from its own bankruptcy. That has helped drive the stock price for Fiat s.p.a., the Italian automaker, which took control of Chrysler in the framework of its own bailout process.

Industry analysts point to a variety of factors for Detroit in strong performance. Union fear workers to their jobs, as the makers at the edge of the abyss, self-serving merging provide a helping hand concessions cut labor costs by more than $70, and less than $50 per hour.

But perhaps there is nothing more important than the product page where the three have dramatically pickup improves the quality and the attractiveness of its individual line ups with new products such as the Cadillac ATS sedan and the RAM 1500-with the North American car and truck of the year, respectively, in January.

This is not to say Detroit big three may not let up on the throttle and blithely assume that success is their birthright, a bad attitude, to whose near collapse during the days, in the run-up to the recent recession - which saw the worst downturn since the great depression in the US automotive market led.

"Even if things are look good, they can not guarantee for a success," warns Stephanie Brinley, auto analyst with IHS automotive.

If anything, competition is more intense than ever, with manufacturers from Europe, Japan and Korea build their own game. In the automotive industry - is both here and abroad - more than ever fragmented. And the cost of doing business the reduction of emissions is constantly increasing as the industry faces pressure to come up with battery cars and other alternative propulsion systems, which can improve fuel efficiency, while.

Typically all sprang from the Detroit makers of the last recession with a unique business strategy, a sharp departure from its historical pattern of largely in lockstep March.

Chrysler has, for example, almost seamlessly merged into Fiat's Empire. In fact, some might say, it's the other way around. The Italian manufacturer struggles desperately like European home market now its worst downturn for decades is facing. In fact, Fiat/Chrysler CEO Sergio Marchionne has signaled that he could move only the combined headquarters of both companies from Turin to Detroit.

In some cases that got Detroit manufacturers work it better - co-opetition, some call it. GM and Ford recently a joint venture for the development of new, highly efficient 9 and 10 speed automatic transmission.

But the domestic manufacturers are also alliances with former adversaries abroad. Ford is working with Toyota, for example on the development of a new hybrid drive, tundra could be used in large trucks like the Ford F-series and Toyota.

Of course, the US market Detroit hasn't hurt the steady increase. If anything, fight back excess capacity during the last recession, paired the creators have now to keep up with the demand, adding tens of thousands of jobs after decades of cutbacks. These streamlined processes - together with work helped cost reductions - enviable margins of around 11% in North America in the last year to reach Ford.

At the same time, more and more have Ford and the inner-city competition recognized that they alone do not count on the U.S. market. GM, which last week announced that it had set yet another sales record in booming China. It is the second largest automobile manufacturer in the today's largest automotive market in the world today. Significantly, about two-thirds of the total turnover of GM now come from outside North America, it signals a shift when he the convertible version, which introduced the most, that sport classic of American cars, the new Corvette stingray, in Geneva in March of this year.

On the flip side as struggling Fiat motors and Ford desperately to undo General of many years of massive losses in Europe. GM recently launched an aggressive new turnaround strategy it but skeptics say that if the latest plan does not keep it might have to sell or even close subsidiary long troubled Opel.

At the moment, investors seem satisfied that what they see from Detroit. But Europe is not the only challenge for the domestic manufacturers. Toyota, for example, this week unveiled its 11th generation of corolla, a car, that might not help its position in the United States but not only companies challenge GM in China.

Meeting with shareholders in the GM Detroit Renaissance Center Central this week, declared CEO Dan Akerson the bailout of 2009 a "Success". Perhaps, but GM and the servants who recognize that success is fleeting can and they have a lot challenges before him.

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