Wednesday, July 16, 2008

PESSIMISTIC VIEW OF DETROIT

It does not look good for Detroit auto makers.

Detroit is in the midst of a horror show. I call it Nightmare on Woodward Avenue (Detroit's old main street). Instead of the relentless Freddy Krueger, overseas competitors are murdering the U.S. industry.

Just as what happened in past fuel crises, today's high gasoline prices are likely to benefit many European and Asian companies. Wait, the nightmare gets worse: The domestics not only have the wrong vehicles in a changing market, and are running out of money, but they have nothing or next to nothing in the works. Meanwhile, the competition is ready with just what the customers want to buy.

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