The current recession is permanently changing the business landscape.  Companies that have been profitable for many years are going out of business.  The impact has been more pronounced in some industries than others, with big ticket and luxury items being the hardest hit. The automobile industry is suffering so much that the federal government is stepping in. All of this begs the question: Who will be left standing when it’s all over?

The top five auto manufacturers have been around for a very long time.  All have made it through tough economic times, many through the Great Depression. Ford, founded in 1903 is the old-timer, while newcomer Honda started making cars in 1963. It seems obvious that a company that survives for decades, even a century, must be pretty strong and flexible. They’ve adapted to changes in demand, technology and politics and continued to grow overall.

Will there be a 2013 Mazda Miata?

But things have changed. GM and Chrysler have accepted help from the federal government and will need more.  So far Ford hasn’t asked for assistance, but who knows?  Everything depends on how long this recession lasts. Eventually consumers will start buying cars in greater numbers again, but can the automakers survive until then?

Part of the answer depends on which companies are well-run and efficient. Like many companies in other industries, auto manufacturers who once weathered the great depression have become fat during the long periods of plenty. If they can adapt quickly, everyone will benefit in the long run.

Another related piece of the puzzle is about who can innovate quickly. While sales have fallen drastically, there are segments of the market that are doing relatively well. Hybrids, which should have been an economically viable option long before now, are popular. So are well-built cars that last longer and require fewer repairs. Automakers that excel in these areas will have more sales now, which will help them hang on. When the economy picks up again, their sales will be much better than those who lag behind.

So who is doing well right now? Toyota tops the list with 92,775 vehicle sales in the first two months of 2009. Ford comes in second at 84,072.  Rounding out the top 5 are Chevrolet at 75,025, Honda at 63,916 and Nissan at 47,890.  While these figures are around 40-50% lower than the same period last year, if they can reduce their costs enough, these automakers may live to see the end of the recession.

Top Pick Green Car

Toyota Prius was named the Top Green Car for 2009.  This is no big surprise, since the Prius has taken this award for the last five years.  With more hybrids coming onto the market, you’d think the Prius would have some serious competition, but so far no one has quite measured up.  (Although the Honda Civic Hybrid is pretty close.) The base model Prius gets 44 mpg, while the Touring gets 42 mpg. That’s especially important now that gas prices are on the rise again.

2009 Pruis Hybrid

Most Bang for the Buck

The Prius also got the top award in the new Most Bang for the Buck category.  For the first time, Consumer Reports has combined owner cost over the first five years with performance and reliability ratings to come up with a Bucks per Bang number.  Toyota Prius Touring Hybrid got $325 bucks per bang.  Compare that to $385 for the Mazda3 Hatchback and $455 for the Mitsubishi Outlander.

Owner Satisfaction

With almost 425,000 car owners weighing in, Toyota Prius takes top honors in the “Would You Buy Your Car if You Had it to Do All Over” test. That pretty much says it all.

2009 Toyota Prius

Price Isn’t Everything

The most cost effective cars are not always the cheapest cars. If a car isn’t well made, it’s going to cost you in repairs and down time. If it has a low resale value, it was more expensive in the long run.  The smart car buyer takes all of these costs into consideration before buying a car.

Source: Consumer Reports, April 2009