The official "blog of bonanza" for Alfidi Capital. The CEO, Anthony J. Alfidi, publishes periodic commentary on anything and everything related to finance. This blog does NOT give personal financial advice or offer any capital market services. This blog DOES tell the truth about business.
Saturday, May 28, 2011
The Non-Resurgent U.S. Auto Industry
Claims that the U.S. automobile industry is somehow "resurgent" need to be reexamined. Chrysler and GM have not moved away from product lines that emphasize oversized, fuel-inefficient SUVs. They may be experiencing a temporary competitive reprieve since the Japanese tsunami wiped out several months' worth of production for Toyota et al. Once Japanese automakers reestablish their supply chains, U.S. automakers can forget about recovering their market leadership.
Gas prices are still high. SUVs can't win as long as pump prices stay high. BTW, Detroit is still headed for urban contraction thanks to irreversible population loss.
Full disclosure: No positions in any automakers at this time.