The US car industry
For many decades, large, fuel-guzzling SUVs and pickup trucks have been the favoured form of transport for American motorists. The three major car manufacturers in the US – General Motors, Ford and Chrysler – have focused on the production of these types of vehicles, with great success. However, concern for the environment, coupled with an economic downturn and 'credit crunch' in the United States, has precipitated a shift in consumer preferences, and demand for new cars has contracted. Consumers looking to buy cars are now favouring the smaller, more fuel-efficient vehicles produced in Japan and Europe. The downturn in the car industry has resulted in lay-offs and financial hardship for workers, particularly in Detroit. American car manufacturers are responding to this challenge by appealing to the Government to loan the industry several billion dollars, and to focus their design and manufacturing on producing smaller, fuel-efficient, environmentally friendly cars, to meet changing consumer tastes.