Feds Predict A Grim Future For Chrysler And GM - What About You?

President Barack Obama boasts about the successful reorganization of General Motors and Chrysler, but some in his administration are using forecasts that anticipate a lackluster future for those automakers.

Projections released by the EPA and the Department of Transportation predict that by the 2025 model year, Chrysler's sales will plunge to less than half of what they were in the 2008 model year, when the Wall Street financial crisis triggered an auto industry depression and catapulted GM and Chrysler toward government-run bankruptcies.

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Steve - 12/23/2011 11:49:35 AM

+2 Boost

Does it take a crystal ball to tell you that once the pig has fed at the trough, it will be back to feed again? When Chrysler went bankrupt the first time, it was a totally new and exceptional experience for the nation. When it happened the second time, this time with GM in tow -- Holy shit! The same "what's good for GM is good for the country" GM? -- people began to take notice.

The masses and the administration don't realize that putting the dinosaur on multi-billion dollar life-support is like putting a bandaid on a hemorrhage. These companies need to redefine who they are, how they work, and the products they produce to become relevant once again. Otherwise, we'll just keep repeating the cycle of throwing tons of tax-payer's income at unviable mega-enterprises.

thetruth01 - 12/23/2011 12:02:26 PM

0 Boost

Wow, you really have to read the whole article.

Steve - 12/23/2011 3:40:54 PM

+1 Boost

Keep my post in your pocket and review it in 14 years (the date of the article's predictions). If I'm out to lunch, and there isn't another round (or rounds) of bankruptcies and bail-outs during that time, then dinner's on me.

Joe_Limon - 12/23/2011 12:13:14 PM

-1 Boost

"GM sales in the 2025 model year are projected to be just about what they were in 2008"

Very grim indeed!

From my understanding, these projections were compiled with the aid of the EPA, I'm guessing they adjusted sales to reflect their current CAFE scores. IF this is true, then don't be surprised when their long term predictions don't pan out. American buyers have traditionally shown a resistance to smaller vehicles, we shouldn't expect them to change simply because the government is throwing more money at the EPA.

mini22 - 12/23/2011 4:06:47 PM

+2 Boost

These projections are simply too far out in time to be anything like accurate. There is no projection for future technology or cost savings factored in. We don't know what the battery technology will be. What happens if we find a way in the US to mine precious metals so we don't have to buy them from China. What if by 2025 it only takes 5 minutes or less to recharge and electric vehicle. What if it's possible to go 500 miles on one charge.What if diesels can go 1500 to 2000 miles on a tank of fuel.There are to "many what ifs" to predict GM and Chrysler. Regarding Chrysler. It has completely different mangement then was typical over the last 20 yrs.GM is also different on the management front.It's simply not realistic to predict this.

AgentOrange - 12/23/2011 5:24:03 PM

+1 Boost

Government bureaucrats are very good at predicting the future as we all know.