by Karen Servantez

Created on: December 05, 2008   Last Updated: December 08, 2008

With the continuing economic recession and talks of more government bailouts, consumers are beginning to wonder where the future of American car makers will take them. A long standing tradition of American automobile manufacturers is losing ground fast. Steadily declining car sales and a first failed attempt by corporate CEOs to obtain much needed funds from congress, are paving their way to bankruptcy. This has left an attractive market for foreign auto investments. While major U.S. companies continue to blame their recent decline in sales on a lack of consumer confidence and a freeze on credit, foreign car makers have steadily moved forward in style and employee satisfaction. In the meantime, many Americans want to remain loyal, but higher prices and lower quality are driving them away from U.S. manufacturers and toward more compact and affordable foreign automobiles. However, there may be a light at the end of the tunnel. Recent restructuring, may lessen the impact of the recession. U.S. manufacturers have begun to embrace the changing times with their "green" line of vehicles, while cutting more expensive, less profitable lines of cars. There focus will be on specific lines of vehicles instead of many lines, that are virtually the same. Their new line of Hybrid cars reflect the changing market and the more environmentally friendly consumer. Manufacturers have also decreased production and employment. While the idea of cutting jobs and production, may not seem like a company moving in the right direction, it is a sign of the times. To avoid bankruptcy the U.S. auto industry may be forced to make even more job cuts. Restructuring of higher management will also be a vital component in the rebuilding of the U.S. auto industry. Consumer confidence has shifted to foreign manufacturers making it hard to regain buyers in the U.S. auto industry. The lack of taxpayer confidence is also making it hard for congress to approve a bailout package for the U.S. auto makers. Talks of corporate mis-spending and outrageous bonuses only add to the decline in auto sales and investments. Foreign vehicles, while not immune to the effects of the recent recession offer a more consumer friendly line of vehicles. The more compact and fuel efficient cars are appealing to consumers struggling with higher gas prices and a drop in employment. Employee satisfaction has also become a major player in foreign car makers on American soil. Better pay and benefits have made many foreign manufacturers appealing to U.S. workers and investors. This shift has added extra pressure to the U.S. auto industry, and as the "Big 3" appeal to congress a second time, driving their way to Washington in fuel efficient cars instead flying in private airplanes Americans are asking: "Will this be enough?"

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