November 21, 2008

Car makers could be next to suffer

We have been amazed recently on how the entire banking system has been saved by government, but could this be the tip of the iceberg? As the car industry is looking very shaky, even more so than normal, could we be looking at a collapse in this industry next?

The first sign of this financial crisis within the car industry has begun to show, first up in the development of eco friendly cars, research can cost millions and this is money that the carmakers can no longer afford, therefore development is beginning to slow down.

The next sign is the car shows, these international events used to be the pinnacle of the carmakers marketing efforts, yet despite these shows still going ahead many of the famous names are pulling out of them because of the costs involved.

It is only a matter of time, before we see the carmakers telling us that they are running out of cash, then what will be the future for the car industry.

Source [USA Today]