In Business if you don’t adjust fast enough to market changes your business will die, and that is exactly what is happening in Detroit where the big three automakers are in crisis mode and are at a critical point not seen for atleast 30+ years.
Detroit’s automakers have been making the shift to more fuel-efficient vehicles, but consumers have been making the move even faster — to hybrids and high mileage models made overseas. Gas prices have accelerated the move away from trucks and sport utility vehicles at a furious pace, leaving the Big Three at the most critical crossroads in 30 years.
“In the early ’70s, we were caught flat-footed, without smaller, fuel-efficient cars. We had nothing to sell,” said Gerald Meyers, a former chairman of American Motors Corp. “That’s exactly what’s happening now.”