Downfall in Sales in the Automotive Companies in the US and Canada

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There is a huge downfall in sales of three big automotive companies in USA and CANADA from 70 % in 1998 to 58% in 2008.These three automotive biggies asked for a help of $50 billion to avoid their bankruptcy and to meet health care benefits, salaries and pension plans. The main reason for this is the drastic rise in fuel prices. Ford faced criticism due to its high product range, superior quality and higher salaries to the employees, bank job programs. Recession in 2008 added much troubles to Ford. Due to recession the raw materials for manufacturing vehicles increased dramatically. Ford tried to manufacture large inefficient gas users, which are brought only by fewer people in the country. Ford manufactured these as they are high profit earners when compared to small fuel efficient cars. The profits earned by selling 10 small cars is same as the profit achieved by selling one SUV. Suddenly the petrol prices begin to rise by 4% and people stopped buying those fuel inefficient cars. This lead to discouragement in buying large pick up trucks and sport model cars. At the same time Japan...

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