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The automotive industry faced some of the toughest financial times since the Great Depression. Analyst claim...

The automotive industry faced some of the toughest financial times since the Great Depression. Analyst claim the crisis is over. Do you agree?

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Answer #1

No, I don't agree because
1. The financial crisis in auto industry was due to increase in fuel prices. As a result of which high profit margin vehicle like utility vehicles and sports cars had reduced sales. The price of fuel is fluctutating all the time and prices if fuel will rise in near future which will have direct impact on the sales of cars.
2. The crisis was due to credit crunch but right now credit issue has improved. However providing cars loans or giving cars to poor creditworthy customers will again increase the problem.
3. Moreover, the target of emission standard and fuel economy set by Trump will require huge investment in near future, impacting profitability. Also the margins of the car makers will be hit in order to adhere to the new car norms and also keeping the customers happy.

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