Professor MacDuffie

In China and India, the car companies Chery and Tata will have to go ahead although the emerging economies do not grow at double digit rates. But the big three U.S. automakers have suffered the worst consequences, falls this year on sales of 25%. Professor John Paul MacDuffie, comments on the other hand, there are serious problems relating to car manufacturers that have long been facing serious problems that have forced them to look for actions that lead to change its product line, offering products of lower consumption, which was not been able to achieve given that the price of oil has affected them in the middle of these changes. Adding the current financial crisis, credit crisis, which leads to not being able to offer credit to those interested in buying a car. Specifically, manufacturers are being battered from all sides. Professor Larry Hrebiniak in its opinion indicates, probably in the last decade, these companies have made many strategic mistakes. A few years ago had a very favorable sectoral structure.

The forces in the industry were very positive. They had power over suppliers. They had power over buyers. Consumers do not know much about buying a car. They had size, had market share.

They were basically an oligopoly of three companies. But suddenly the world changes. The competition arises. Customers gain knowledge through Internet. Suppliers become more powerful. The UAW (United Auto Workers) historically had been pretty bad with GM and now is not the exception. Added to this as stated by Professor MacDuffie, leads to crisis where failure occurs well managed companies.