| iv> | | | | abroad. Sales in the states are off just 2.1% for |
| The American auto industry isn't the only one | | | | the year, the smallest decrease of any full line |
| suffering. Reports that Germany is seeing a down | | | | automaker. Volkswagen announced a few months |
| turn have surfaced with 2009 projected to be a | | | | back that they would build a production plant in |
| very difficult year for that nation's new car | | | | Tennessee their first plant in the states since |
| market. Talk about the troubles for America's car | | | | abandoning a Pennsylvania factory during the late |
| industry is rampant, but the German automotive | | | | 1980s. |
| industry is taking its lumps too. Reuters is | | | | Although the US government is studying offering |
| reporting that the German market is going | | | | assistance to General Motors, Ford and Chrysler |
| through its worst slump since 1990 and expects | | | | the German government hasn't offered |
| the market to contract by 200,000 units in 2009. | | | | assistance to Volkswagen, Porsche, BMW and |
| Perhaps worse for Germany is that exports will | | | | Daimler. Analysts are saying that this lack of help |
| also drop including those highly prized and | | | | is exacerbating the problem in Germany and could |
| profitable models such as the Audi A8, BMW | | | | lead to further erosion in production going |
| 5-Series, and Mercedes S-Class. The United States | | | | forward. |
| market has been a boon to most German | | | | Talk of consolidation in the German auto industry |
| automakers, giving each company the bulk of | | | | hasn't gotten beyond the this could work |
| their profits over the past decade. With | | | | phase. Recently, BMW and Mercedes signed a |
| Americans avoiding new cars at a record pace, | | | | historic parts sharing agreement to save on |
| the demand for German cars has dropped | | | | purchasing parts as well as sharing of certain |
| precipitously. | | | | components including engines and transmissions. |
| Not all of the news is gloomy as there are some | | | | Porsche is attempting to swallow up Volkswagen, |
| rays of light shining in Germany. Most particularly, | | | | but the sour economy has put that on hold at |
| small cars are still selling quite well and are finding | | | | least for now. |
| a market overseas. BMW subsidiary MINI and | | | | 2009 will likely be a tell all year for the German |
| Mercedes subsidiary Smart are each doing quite | | | | industry one that could force more cooperation |
| well, showing that the bottom end of the market | | | | between companies including project collaboration |
| may not be as tough as once feared. | | | | perhaps even a merger. |
| Volkswagen continues to do fairly well, especially | | | | |