There is no doubt that Michigan State had the best auto industry in the United States: Detroit is nicknamed “The motor city” after all. The automotive industry in Detroit contributed to a strong labor force as well as steady economic development as this city is where the headquarters of the three biggest auto makers in the United States, Ford, General Motors and Chrysler were located. The recession had its biggest toll on the automotive industry in 2008/2009 as this time period saw these giants almost toppling and having to ask for bailouts and loans as well as having to make decisions to merge.
What toppled the Michigan auto industry?
It is no secret that the recession hit hard and fast in a time where corporate spending was irresponsible and downright reckless and people were led to believe that unlimited amounts of credit were available. The Detriot auto industry crashed because of the drastic increase in gas prices, the sudden crash of the credit companies, and the inability of auto makers to correctly assess the market thus producing expensive gas guzzlers instead of energy saving economical vehicles.
As far as automotive makers go Ford definitely packs a big punch; it ranks behind GM in the United States and fifth in the world. Ford in 2008 was credited with producing over 5 million vehicles and employing over 200,000 individuals worldwide. In 2009 these figures dropped as the economy crashed and almost took Ford with it.
General Motors (GM)
General Motors is now the world’s second largest automotive manufacturer ranking only behind Toyota of Japan. General Motors is responsible for 209,000 jobs in 157 countries, and it has always had a great responsibility to the city of Detroit, state of Michiga, and the overall American economy because of the massive amount of jobs it provides as well as its general economic contribution. 2008 and 2009 were disappointing years for this company because even though total vehicles sold in those years amounted to 2,980,688 and 2,084,492 respectively, these numbers were nowhere near the 4 or 5 million vehicles that General Motors is accustomed to selling.
In early 2009 overall sales reported by Chrysler world-wide were poor; sales of vehicles overseas declined by 30%. This drastic drop in sales as well as an overall poor performance prompted Chrysler along with General Motors and Ford to ask for a bailout from the government. Chrysler eventually went the way of merging with Fiat in June 2009 instead of continuing to pursue the government bailout.