The last two years were probably the worst in the history of the global car industry which goes back over a century. The markets in the US, Japan, EU, and UK were all eroded by lack of consumer credit and high unemployment. Chrysler and GM went bankrupt. Layoffs throughout the sector went into the hundreds of thousands. Brands, including Pontiac and Saturn, were closed.
The only notable bright spot for the period was China, where car sales nearly doubled year-over-previous year in 2009.
It should bring some relief to the world’s largest vehicle manufacturers that Toyota (NYSE:TM) will increase it production to 7.5 million cars and light trucks in 2010. Reuters reports the figure is about one million units below 2007. It is, however, a significant improvement over 2008 and 2009.
Car sales in the US, Japan, and Europe may never return to the highs that they hit five years ago, but the industry’s radical downsizing is over.
Douglas A. McIntyre
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