People have always tried to guess how things would be different in the future. The future of the automobile has been a much loved topic of TV shows and cartoons for years. How did you imagine we would travel in the year 2010? The self-driven taxi from Total Recall? Hovering craft like in Star Wars? The sky was the limit, literally, for what cars would look like. Continue reading »

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.

2009 Honda Civic Hybrid

There is nothing better than bending the rules of the Law by driving in the carpool lane with only you as the occupant!  That’s right you too can join the ranks of soccer moms and carpooling yuppies.  The state of California only made 60,000 Yellow carpool lane stickers available.  Those were all scooped up in no time at all.   Given mostly to Toyota Prius and Honda Civic Hybrids; these stickers have become a hot commodity, even showing up on the black market (EBAY)!  Although these cars that possess a Clean Air Carpool lane sticker can fetch a higher price than they layman brothers, the trade off is well worth it.  In a City like Los Angeles where rush hour traffic is the equivalent to waterboarding; these stickers are worth their weight in gold.  And Unicars Honda in Coachella Valley has 2 used Civic Hybrids for sale.  So better hurry on down before I get there!