Most important differences in polices and measures adopted by different companies in US automobile industry
The most important difference in policies and measures adopted by different companies in the United States auto industry in response to the current crisis can be surmised to be one that signifies the manner in which the companies have chosen to respond to the recession. While some companies have chosen to engage in unquestioned layoffs, others have chosen to remain consistent in their production indexes and have chosen to wait for external aid. Others have chosen to continue in their operations while suspending expansions.
However, there has been virtually no company in the United States auto industry that has not suffered due to decrease purchase trends in consumers and has not chosen to redevelop its policies ad perceptions with regard to its regular method of operation. Some companies have chosen to file for bankruptcy while others have been led to file for bankruptcy as the only remaining option in order to survive.
Members of the United States Automobile Industry such as GM, Ford and Chrysler have chosen to opt for bailout plans that include government loans and stringent instructions for the resignation of members from the executive management. The Big Three has opted to make use of these bailout plans in order to sustain their operations for temporary durations from the initiation of the bailout plans.
It is significant to note that the effects of the current economic crisis are not ones that have hit in the last two to three years but have been observed to be causing losses since the beginning of this decade. United States Automobile Industry members such as Toyota and ford were reporting losses on and off in their reports and spinoffs had become frequent in major United States Automobile manufacturers. GM and other such member of the United States Automobile Industry spun off subsidiaries that later filed for bankruptcy. Others chose to engage in adjustment of costs such as healthcare plans and pension plans by shifting to external independent trusts. Deals were made with worker unions to agree on tier based wage systems that could decrease the burden of the crisis from the shoulders of the nearly bankrupt companies’ books.
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