Changes

==Industry trends==

==Industry trends==

The annual capacity of the industry is 17 million cars; sales in 2008 dropped to an annual rate of only 10 million vehicles made in the U.S. and Canada. All the automakers and their vast supplier network account for 2.3% of the U.S. economic output, down from 3.1% in 2006 and as much as 5% in the 1990s. Some 20% of the entire national manufacturing sector is still tied to the automobile industry.  The transplants can make a profit when sales are at least 12 million; the Big Three when sales are at least 15 million.<ref> Louis Uchitelle, "If Detroit Falls, Foreign Makers Could Be Buffer," [http://www.nytimes.com/2008/11/17/business/economy/17impact.html?_r=1&hp&oref=slogin ''New York Times,'' Nov. 16. 2008] </ref>

The annual capacity of the industry is 17 million cars; sales in 2008 dropped to an annual rate of only 10 million vehicles made in the U.S. and Canada. All the automakers and their vast supplier network account for 2.3% of the U.S. economic output, down from 3.1% in 2006 and as much as 5% in the 1990s. Some 20% of the entire national manufacturing sector is still tied to the automobile industry.  The transplants can make a profit when sales are at least 12 million; the Big Three when sales are at least 15 million.<ref>Louis Uchitelle, "If Detroit Falls, Foreign Makers Could Be Buffer," [http://www.nytimes.com/2008/11/17/business/economy/17impact.html?_r=1&hp&oref=slogin ''New York Times,'' Nov. 16. 2008]</ref>

The "Big Three" (General Motors, Ford and Chrysler) have done poorly in recent years.  They have lost most of the market to imports and "transplants" (cars made in U.S. factories owned by foreign makes).  The first signs came when Volkswagen and Honda started importing cheap, well-made cars in the 1960s. Detroit convinced Congress to impose quotas, and the foreign companies responded by opening their own plants in the U.S.   

The "Big Three" (General Motors, Ford and Chrysler) have done poorly in recent years.  They have lost most of the market to imports and "transplants" (cars made in U.S. factories owned by foreign makes).  The first signs came when Volkswagen and Honda started importing cheap, well-made cars in the 1960s. Detroit convinced Congress to impose quotas, and the foreign companies responded by opening their own plants in the U.S.   

The "transplants" are built in the South and are non-union. Facing steady financial losses, The Big Three have closed many factories and drastically cut employment, especially in Michigan. They are handicapped by union contracts which require them to "buy out" union workers when plants close, at a typical cost of $100,000 to $150,000 each. Health care and pension costs add $1500 to the cost of each vehicle made by the Big Three, and their wage levels are much higher than the transplants.  Average annual wages for production workers at the Big Three were $67,480 in 2007, and $81,940 for skilled workers.  GM spun off some of its divisions into independent companies, such as American Axle  in 1995 and Delphi in 1999.  Ford spun off Visteon in 2000. The spin-offs have shared Detroit's downturns, as have the U.S. owned plants in Canada.   

The "transplants" are built in the South and are non-union. Facing steady financial losses, The Big Three have closed many factories and drastically cut employment, especially in Michigan. They are handicapped by union contracts which require them to "buy out" union workers when plants close, at a typical cost of $100,000 to $150,000 each. Health care and pension costs add $1500 to the cost of each vehicle made by the Big Three, and their wage levels are much higher than the transplants.  Average annual wages for production workers at the Big Three were $67,480 in 2007, and $81,940 for skilled workers.  GM spun off some of its divisions into independent companies, such as American Axle  in 1995 and Delphi in 1999.  Ford spun off Visteon in 2000. The spin-offs have shared Detroit's downturns, as have the U.S. owned plants in Canada.   

Meanwhile the transplants have been growing. Led by Toyota, Nissan and Honda, by 2003 the transplants were producing more vehicles than the Big Three. The transplants built new factories and adding to the employment rolls in non-union plants in the South, especially Kentucky and Tennessee. The United Automobile Workers (UAW) has shrunk steadily since 1980, falling from 1.5 million members to 600,000.<ref> CRS Report for Congress, ''U.S Automotive Industry: Policy Overview and Recent History'' (April 25, 2005) [http://ncseonline.org/NLE/CRSreports/05apr/RL32883.pdf online]</ref>

Meanwhile the transplants have been growing. Led by Toyota, Nissan and Honda, by 2003 the transplants were producing more vehicles than the Big Three. The transplants built new factories and adding to the employment rolls in non-union plants in the South, especially Kentucky and Tennessee. The United Automobile Workers (UAW) has shrunk steadily since 1980, falling from 1.5 million members to 600,000.<ref>CRS Report for Congress, ''U.S Automotive Industry: Policy Overview and Recent History'' (April 25, 2005) [http://ncseonline.org/NLE/CRSreports/05apr/RL32883.pdf online]</ref>

==Financial crisis==

==Financial crisis==

The Big Three had in recent years stressed expensive, fuel-guzzling SUVs and large pickups. They were much more profitable than smaller, fuel-efficient cars. When [[gasoline prices]] shot past US$4 per gallon in 2008, Americans stopped buying the big cars, and the Big Three saw their sales plummet.  The [[Financial Crisis of 2008]] played a role as no one was willing to loan GM the money to buy Chrysler. Consumer credit has tightened and it became much harder for people with average or poor credit to obtain a bank loan to buy a car, so sales fell further.  Stock prices fell as shareholders worried about bankruptcy; GM's shares fell to 1942 levels.  

The Big Three had in recent years stressed expensive, fuel-guzzling SUVs and large pickups. They were much more profitable than smaller, fuel-efficient cars. When [[gasoline prices]] shot past US$4 per gallon in 2008, Americans stopped buying the big cars, and the Big Three saw their sales plummet.  The [[Financial Crisis of 2008]] played a role as no one was willing to loan GM the money to buy Chrysler. Consumer credit has tightened and it became much harder for people with average or poor credit to obtain a bank loan to buy a car, so sales fell further.  Stock prices fell as shareholders worried about bankruptcy; GM's shares fell to 1942 levels.  

Intense debate in December 2008 focused on allowing bankruptcy or injecting billions more of federal aid in loans and buyouts; it would be in addition to a $25 billion loan Congress passed in September 2008 to assist in increasing fuel efficiency.  The Democrats in Congress supported president Bush's proposal to sue the fuel-efficiency loans to help with the immediate problem. It passed the House but Senate Republicans broke with Bush and it failed.  The opponents called for a bankruptcy that would allow GM to get out of its contracts to pay union members high wages, as well as generous pension sand medical benefits to retired workers.  Bush then acted unilaterally and decided to lend GM and Chrysler in [Financial Crisis of 2008|TARP money]] on December 19. GM and Chrysler will got $13.4 billions in loans they can use to pay their suppliers.<ref> GM and Chrysler will receive $4 billion each when they sign the loan agreements with the Treasury. GM will have access to an addition $5.4 billion on Jan. 16 and another $4 billion on Feb. 17 provided that Congress has released the remaining $350 billion for the Treasury’s TARP rescue program. </ref> GM can receive another $4 billion in February, but by then the Obama administration will be in charge, and it is emphasizing the need for a long-range solution.<ref>David E. Sanger, David M. Herszenhorn and Bill Vlasic, “Bush Aids Detroit, but Hard Choices Wait for Obama,” [http://www.nytimes.com/2008/12/20/business/20auto.html?hp ''NewYork Times'' Dec. 19, 2008]</ref>  

Intense debate in December 2008 focused on allowing bankruptcy or injecting billions more of federal aid in loans and buyouts; it would be in addition to a $25 billion loan Congress passed in September 2008 to assist in increasing fuel efficiency.  The Democrats in Congress supported president Bush's proposal to sue the fuel-efficiency loans to help with the immediate problem. It passed the House but Senate Republicans broke with Bush and it failed.  The opponents called for a bankruptcy that would allow GM to get out of its contracts to pay union members high wages, as well as generous pension sand medical benefits to retired workers.  Bush then acted unilaterally and decided to lend GM and Chrysler in [[Financial Crisis of 2008|TARP money]] on December 19. GM and Chrysler will got $13.4 billions in loans they can use to pay their suppliers.<ref>GM and Chrysler will receive $4 billion each when they sign the loan agreements with the Treasury. GM will have access to an addition $5.4 billion on Jan. 16 and another $4 billion on Feb. 17 provided that Congress has released the remaining $350 billion for the Treasury’s TARP rescue program.</ref> GM can receive another $4 billion in February, but by then the Obama administration will be in charge, and it is emphasizing the need for a long-range solution.<ref>David E. Sanger, David M. Herszenhorn and Bill Vlasic, “Bush Aids Detroit, but Hard Choices Wait for Obama,” [http://www.nytimes.com/2008/12/20/business/20auto.html?hp ''NewYork Times'' Dec. 19, 2008]</ref>  

In addition to the Big Three hundreds of large suppliers of parts are in financial crisis as well; most would go under if the Big Three go bankrupt.

In addition to the Big Three hundreds of large suppliers of parts are in financial crisis as well; most would go under if the Big Three go bankrupt.

In March 2009 GM reported that its auditors have raised substantial doubts about its ability to continue as a going concern, citing recurring losses from operations, stockholders' deficit and an inability to generate enough cash to meet its obligations.  GM has received $13.4 billion in federal loans, and the company is seeking a total of $30 billion from the government. During the past three years it has run up $82 billion in losses, including $30.9 billion in 2008. Bankruptcy appears likely.<ref>Nick Bunkley, "Auditors Raise Doubts About G.M.’s Viability," [http://www.nytimes.com/2009/03/06/business/06auto.html?hp ''New York Times'' Mar. 5, 2009]</ref> The Obama Administration has apparently decided that bankruptcy would be a mistake, and will try to keep the Big Three in operation.  

In March 2009 GM reported that its auditors have raised substantial doubts about its ability to continue as a going concern, citing recurring losses from operations, stockholders' deficit and an inability to generate enough cash to meet its obligations.  GM has received $13.4 billion in federal loans, and the company is seeking a total of $30 billion from the government. During the past three years it has run up $82 billion in losses, including $30.9 billion in 2008. Bankruptcy appears likely.<ref>Nick Bunkley, "Auditors Raise Doubts About G.M.’s Viability," [http://www.nytimes.com/2009/03/06/business/06auto.html?hp ''New York Times'' Mar. 5, 2009]</ref> The Obama Administration has apparently decided that bankruptcy would be a mistake, and will try to keep the Big Three in operation.  

Equally serious is the plight of the parts makers--who actually do most of the factory work that goes into cars. "The failure of a few key suppliers could have brought the entire industry to its knees," said the president of the Original Equipment Suppliers Association, where a third of the membership reported that it would face severe financial distress in the first quarter. The government is giving $5 billion in aid to this sector.<ref> Kendra Marr and Peter Whoriskey, "Auto Parts Makers Get $5 Billion Lifeline: U.S. Aid Boosts Hopes for the Entire Industry," [http://www.washingtonpost.com/wp-dyn/content/article/2009/03/19/AR2009031901597.html?hpid=topnews ''Washington Post'' Mar. 20, 2009]</ref>

Equally serious is the plight of the parts makers—who actually do most of the factory work that goes into cars. "The failure of a few key suppliers could have brought the entire industry to its knees," said the president of the Original Equipment Suppliers Association, where a third of the membership reported that it would face severe financial distress in the first quarter. The government is giving $5 billion in aid to this sector.<ref>Kendra Marr and Peter Whoriskey, "Auto Parts Makers Get $5 Billion Lifeline: U.S. Aid Boosts Hopes for the Entire Industry," [http://www.washingtonpost.com/wp-dyn/content/article/2009/03/19/AR2009031901597.html?hpid=topnews ''Washington Post'' Mar. 20, 2009]</ref>

On March 29 President Obama forced the head of GM to resign, and on March 30 issued a do-or-die ultimatum for the struggling industry, demanding strict financial standards that the carmakers must meet to get more government aid and declaring that their industry must survive because it is "like no other, an emblem of the American spirit." He demanded that Chrysler form a partnership with the Italian automaker Fiat within 30 days. He did not threaten Ford, which has not asked for federal aid.  He did not offer relief from the high mileage standards on which Detroit has consistently fallen behind Asian competitors. Obama asked Congress to offer cash subsidies for new car buyers, especially those who turn in old gas guzzlers (which will be scrapped). The stock market promptly plunged 3.6%.

On March 29 President Obama forced the head of GM to resign, and on March 30 issued a do-or-die ultimatum for the struggling industry, demanding strict financial standards that the carmakers must meet to get more government aid and declaring that their industry must survive because it is "like no other, an emblem of the American spirit." He demanded that Chrysler form a partnership with the Italian automaker Fiat within 30 days. He did not threaten Ford, which has not asked for federal aid.  He did not offer relief from the high mileage standards on which Detroit has consistently fallen behind Asian competitors. Obama asked Congress to offer cash subsidies for new car buyers, especially those who turn in old gas guzzlers (which will be scrapped). The stock market promptly plunged 3.6%.

In late April 2009 GM announced further downsizing that will reduce its American workforce to 38,000 union employees, compared with 395,000 at its peak in 1970.<ref> [http://www.nytimes.com/2009/04/28/business/28auto.html?hp Bill Vlasic And Nick Bunkley, "G.M.’S Latest Plan Envisions a Much Smaller Automaker," '' New York Times'' April 27, 2009]</ref>

In late April 2009 GM announced further downsizing that will reduce its American workforce to 38,000 union employees, compared with 395,000 at its peak in 1970.<ref>[http://www.nytimes.com/2009/04/28/business/28auto.html?hp Bill Vlasic And Nick Bunkley, "G.M.’S Latest Plan Envisions a Much Smaller Automaker," '' New York Times'' April 27, 2009]</ref>

===Bankruptcy for GM and Chrysler===

===Bankruptcy for GM and Chrysler===

Ford appears to be solvent.

Ford appears to be solvent.

Bankruptcy in practice in 2009 means continued operation for Chrysler and GM. If it involves totally shutting down, then bankruptcy of the Big Three would be very expensive to the economy as a whole and the federal government. It would mean loss of 240,000 very high paying jobs at the Big Three, a loss of 980,000 high-paying jobs at the suppliers and local dealers, and 1.7 million jobs throughout the economy.  It would cause a decline in personal income of $151 billion the first year, and $398 billion over three years.  The federal, state and local governments would lose tax revenue and spend on welfare programs a total of $156 billion over three years.<ref> CAR Research Memorandum. "The Impact of the U.S. Economy of a Major Contraction of the Detroit Three Automakers" (Nov 2008) [http://www.cargroup.org/documents/FINALDetroitThreeContractionImpact_3__000.pdf online edition]</ref>

Bankruptcy in practice in 2009 means continued operation for Chrysler and GM. If it involves totally shutting down, then bankruptcy of the Big Three would be very expensive to the economy as a whole and the federal government. It would mean loss of 240,000 very high paying jobs at the Big Three, a loss of 980,000 high-paying jobs at the suppliers and local dealers, and 1.7 million jobs throughout the economy.  It would cause a decline in personal income of $151 billion the first year, and $398 billion over three years.  The federal, state and local governments would lose tax revenue and spend on welfare programs a total of $156 billion over three years.<ref>CAR Research Memorandum. "The Impact of the U.S. Economy of a Major Contraction of the Detroit Three Automakers" (Nov 2008) [http://www.cargroup.org/documents/FINALDetroitThreeContractionImpact_3__000.pdf online edition]</ref>

A bankruptcy of the Big Three would not quickly benefit foreign makers.  The transplants would be severely hurt by the closing of parts companies like American Axle, Delco and Visteon they share with the Big Three, and their output would fall. There would be far fewer new cars for sale for years, and prices would soar. Eventually imports would come from abroad, but they would be much more expensive than current autos.  It takes years to build new plants, and in the current financial crisis there is no funding available for risky multi-billion dollar manufacturing ventures.<ref> Louis Uchitelle, "If Detroit Falls, Foreign Makers Could Be Buffer," [http://www.nytimes.com/2008/11/17/business/economy/17impact.html?_r=1&hp&oref=slogin ''New York Times,'' Nov. 16. 2008] </ref>

A bankruptcy of the Big Three would not quickly benefit foreign makers.  The transplants would be severely hurt by the closing of parts companies like American Axle, Delco and Visteon they share with the Big Three, and their output would fall. There would be far fewer new cars for sale for years, and prices would soar. Eventually imports would come from abroad, but they would be much more expensive than current autos.  It takes years to build new plants, and in the current financial crisis there is no funding available for risky multi-billion dollar manufacturing ventures.<ref>Louis Uchitelle, "If Detroit Falls, Foreign Makers Could Be Buffer," [http://www.nytimes.com/2008/11/17/business/economy/17impact.html?_r=1&hp&oref=slogin ''New York Times,'' Nov. 16. 2008]</ref>

===Chrysler===

===Chrysler===

The new Chrysler emerged from bankruptcy in June 2009. The old debts are nearly all gone (except some money it owes the governments of the US and Canada). In terms of ownership of the stock, the UAW union's health care trust has 55%, which it will try to sell as soon as possible on the open market. the American and Canadian governments have 8% and 2% respectively; and Fiat of Italy has 20%. Fiat's stake will grow to 35% after Chryster pays off its government loans.  The board of directors is more powerful and has nine members: three from Fiat, four named by the US Treasury, one by the Canadian government and one by the UAW. Actual control is held by Fiat.<ref> See [http://www.nytimes.com/2009/06/11/business/11primer.html?ref=business Michelle Maynard, "Questions About New Chrysler? Here Are Some Answers", ''New York Times'' June 10, 2009]</ref>   

The new Chrysler emerged from bankruptcy in June 2009. The old debts are nearly all gone (except some money it owes the governments of the US and Canada). In terms of ownership of the stock, the UAW union's health care trust has 55%, which it will try to sell as soon as possible on the open market. the American and Canadian governments have 8% and 2% respectively; and Fiat of Italy has 20%. Fiat's stake will grow to 35% after Chryster pays off its government loans.  The board of directors is more powerful and has nine members: three from Fiat, four named by the US Treasury, one by the Canadian government and one by the UAW. Actual control is held by Fiat.<ref>See [http://www.nytimes.com/2009/06/11/business/11primer.html?ref=business Michelle Maynard, "Questions About New Chrysler? Here Are Some Answers", ''New York Times'' June 10, 2009]</ref>   

All Chrysler factories are now shut down and will reopen after it sells the huge inventory it holds in lots around the country(especially from the closed dealerships). In a year or so Chrysler will be making and selling Fiats.

All Chrysler factories are now shut down and will reopen after it sells the huge inventory it holds in lots around the country(especially from the closed dealerships). In a year or so Chrysler will be making and selling Fiats.

[[File:Gas1945-2008.jpg|thumb|550px]]

[[File:Gas1945-2008.jpg|thumb|550px]]

Total gasoline consumption in the U.S. rose from 6.5 million barrels a day in 1980, and reached 9.1 million in 2004 and 9.0 million in 2008.<ref> See [http://tonto.eia.doe.gov/dnav/pet/hist/mgfupus2a.htm online data]</ref> There will be little change in the next decade as increased driving is matched by more fuel efficiency.  For that reason the major oil companies see no need to build new refineries in the U.S.  With the rapid growth of driving in China and India, however, new refineries will be needed there.

Total gasoline consumption in the U.S. rose from 6.5 million barrels a day in 1980, and reached 9.1 million in 2004 and 9.0 million in 2008.<ref>See [http://tonto.eia.doe.gov/dnav/pet/hist/mgfupus2a.htm online data]</ref> There will be little change in the next decade as increased driving is matched by more fuel efficiency.  For that reason the major oil companies see no need to build new refineries in the U.S.  With the rapid growth of driving in China and India, however, new refineries will be needed there.

==World history==

==World history==

In the popular market, [[Opel]] and [[Volkswagen]] are most famous.  Opel was a bicycle company that started making cars in 1898; General Motors bought it out in 1929, but the Nazi government took control and GM wrote off its entire investment.  In 1948 GM returned and restored the Opel brand.

In the popular market, [[Opel]] and [[Volkswagen]] are most famous.  Opel was a bicycle company that started making cars in 1898; General Motors bought it out in 1929, but the Nazi government took control and GM wrote off its entire investment.  In 1948 GM returned and restored the Opel brand.

Volkswagen is dominant in the popular market; it purchased Audi in 1964. VW's most famous car was the small, beetle-shaped economical "people's car" with a rear-mounted, air-cooled engine. It was designed in the 1930s by [[Ferdinand Porsche]] upon order from [[Adolf Hitler]], who was himself a car enthusiast.  However production models appeared only after the war; until then only rich Germans had automobiles. By 1950 Volkswagen was the largest German automobile producer.<ref> Terry Shuler, ''Volkswagen: Then, Now and Forever'' (1997) </ref>  

Volkswagen is dominant in the popular market; it purchased Audi in 1964. VW's most famous car was the small, beetle-shaped economical "people's car" with a rear-mounted, air-cooled engine. It was designed in the 1930s by [[Ferdinand Porsche]] upon order from [[Adolf Hitler]], who was himself a car enthusiast.  However production models appeared only after the war; until then only rich Germans had automobiles. By 1950 Volkswagen was the largest German automobile producer.<ref>Terry Shuler, ''Volkswagen: Then, Now and Forever'' (1997)</ref>  

Germany is famous for its upscale sedans. They are designed for high-speed cruising over the [[autobahn]]s. They feature well-designed suspension systems that provide both a soft ride and good handling characteristics on winding country roads. Engines are designed for sustained high-speed operation, though in general they are weak on acceleration.  

Germany is famous for its upscale sedans. They are designed for high-speed cruising over the [[autobahn]]s. They feature well-designed suspension systems that provide both a soft ride and good handling characteristics on winding country roads. Engines are designed for sustained high-speed operation, though in general they are weak on acceleration.  

[[Daimler-Benz]] produces the upscale [[Mercedes-Benz]], long a famous name in racing.  [[BMW]] (founded 1916) and [[Porsche]] are major factors in the luxury market.<ref> David Kiley, ''Driven: Inside BMW, the Most Admired Car Company in the World'' (2004);  Ferry Porsche, ''We at Porsche: The Autobiography of Dr. Ing. h.c. Ferry Porsche'' (1977) </ref>  Porsche formed his own company, which today produces expensive, high-quality sports cars.<ref> Giancarlo Reggiani, ''Porsche: The Legend: 1948 to Today'' (2007) </ref>. In 2008 the Porsche company sought control of the much larger Volkswagen company; Porsche cornered the market for Volkswagen stock and made profits of tens of billions of Euros, while apparently gaining control of the bigger company.

[[Daimler-Benz]] produces the upscale [[Mercedes-Benz]], long a famous name in racing.  [[BMW]] (founded 1916) and [[Porsche]] are major factors in the luxury market.<ref>David Kiley, ''Driven: Inside BMW, the Most Admired Car Company in the World'' (2004);  Ferry Porsche, ''We at Porsche: The Autobiography of Dr. Ing. h.c. Ferry Porsche'' (1977)</ref>  Porsche formed his own company, which today produces expensive, high-quality sports cars.<ref>Giancarlo Reggiani, ''Porsche: The Legend: 1948 to Today'' (2007)</ref> In 2008 the Porsche company sought control of the much larger Volkswagen company; Porsche cornered the market for Volkswagen stock and made profits of tens of billions of Euros, while apparently gaining control of the bigger company.

===Japan===

===Japan===

The auto industry developed late in Britain and for the first half of the 20th century the small output of British-owned companies focused on luxury and upscale models notably  Rolls-Royce and  later Bentley as well as Jaguar and Rover.  The stress was on high quality hand-made craftsmanship, regardless of high cost.   

The auto industry developed late in Britain and for the first half of the 20th century the small output of British-owned companies focused on luxury and upscale models notably  Rolls-Royce and  later Bentley as well as Jaguar and Rover.  The stress was on high quality hand-made craftsmanship, regardless of high cost.   

Beginning 1925 William Morris, later Viscount Nuffield, began to mass produce small cars of modest power under the "M.G." nameplate. Morris modeled his methods after [[Henry Ford]], and sought high volume production of inexpensive cars geared to the urban middle class. In 1953 M.G. merged with Austin to form the British Motor Corporation, the largest  producer, which also produced the Austin, Austin-Healey, Morris,  Riley, Wolseley. It added Jaguar in 1966. BMC specialized in small, economy sedans and sports  cars, with 4 cylinder engines. It merged in 1968 with rival Leyland.  Another rival was the Rootes group, with the brands Sunbeam, Talbot, Hillman, Singer, and Humber. <ref> Timothy R. Whisler, ''The British Motor Industry, 1945-1994: A Case Study in Industrial Decline'' (1999) </ref>

Beginning 1925 William Morris, later Viscount Nuffield, began to mass produce small cars of modest power under the "M.G." nameplate. Morris modeled his methods after [[Henry Ford]], and sought high volume production of inexpensive cars geared to the urban middle class. In 1953 M.G. merged with Austin to form the British Motor Corporation, the largest  producer, which also produced the Austin, Austin-Healey, Morris,  Riley, Wolseley. It added Jaguar in 1966. BMC specialized in small, economy sedans and sports  cars, with 4 cylinder engines. It merged in 1968 with rival Leyland.  Another rival was the Rootes group, with the brands Sunbeam, Talbot, Hillman, Singer, and Humber.<ref>Timothy R. Whisler, ''The British Motor Industry, 1945-1994: A Case Study in Industrial Decline'' (1999)</ref>

Ford opened a plant as early as 1911 and soon had 40% of the British market. In 1931 Ford opened the largest auto plant in Europe near London. Ford eventually acquired [[Aston Martin]], Jaguar and Land Rover. By 2008 it was selling off those divisions.<ref> Huber Bonin, et al. ''Ford, 1902-2003: The European History'' 2 vol Paris 2003. ISBN 2-914369-06-9</ref>  Rootes was taken over by Chrysler in the late 1960s and its brands phased out by the 1970s.  The Chrysler operations were taken over by Peugeot in 1978.  Nissan opened a plant in 1986.

Ford opened a plant as early as 1911 and soon had 40% of the British market. In 1931 Ford opened the largest auto plant in Europe near London. Ford eventually acquired [[Aston Martin]], Jaguar and Land Rover. By 2008 it was selling off those divisions.<ref>Huber Bonin, et al. ''Ford, 1902-2003: The European History'' 2 vol Paris 2003. ISBN 2-914369-06-9</ref>  Rootes was taken over by Chrysler in the late 1960s and its brands phased out by the 1970s.  The Chrysler operations were taken over by Peugeot in 1978.  Nissan opened a plant in 1986.

After 1945 and the end of the Second World War, American and British firms dominated the European market. In 1950, of 523,000 cars produced in Britain, 398,000 were exported.  By the late 1950s, however, the Germans were back, followed soon by the French and Italian producers, and Britain lost most of its continental market. By 1970 Japanese firms identified the British market as the first major European market to attack because of the relative weakness of the domestic car industry.<ref>Peter Johnson, ed. ''The Structure of British Industry'' (1988) ch. 8</ref>  

After 1945 and the end of the Second World War, American and British firms dominated the European market. In 1950, of 523,000 cars produced in Britain, 398,000 were exported.  By the late 1950s, however, the Germans were back, followed soon by the French and Italian producers, and Britain lost most of its continental market. By 1970 Japanese firms identified the British market as the first major European market to attack because of the relative weakness of the domestic car industry.<ref>Peter Johnson, ed. ''The Structure of British Industry'' (1988) ch. 8</ref>  

== Fuel ==

== Fuel ==

President [[George W. Bush|Bush]] has urged car manufacturers to produce cars that can run on renewable fuels such as [[ethanol]] and [[biodiesel]], to cut down on America's dependence on foreign [[oil]].  Several manufacturers are also developing [[electric car|electric cars]], hybrid cars and plug in hybrids.

President [[George W. Bush|Bush]] has urged car manufacturers to produce cars that can run on renewable fuels such as [[ethanol]] and [[biodiesel]], to cut down on America's dependence on foreign [[oil]].  Several manufacturers are also developing [[electric car]]s, hybrid cars and plug in hybrids.

== Racing ==

== Racing ==

==Bibliography==

==Bibliography==

* Berger; Michael L. ''The Automobile in American History and Culture: A Reference Guide'' (2001) [http://www.questia.com/read/107064614?title=The%20Automobile%20in%20American%20History%20and%20Culture%3a%20%20A%20Reference%20Guide online edition]

* Berger; Michael L. ''The Automobile in American History and Culture: A Reference Guide'' (2001) [http://www.questia.com/read/107064614?title=The%20Automobile%20in%20American%20History%20and%20Culture%3a%20%20A%20Reference%20Guide online edition]

* Bonin, Huber et al. ''Ford, 1902-2003: The European History'' 2 vol Paris 2003. ISBN 2-914369-06-9 scholarly essays in English; reviewed in Len Holden,  "Fording the Atlantic: Ford and Fordism in Europe" in ''Business History '' Volume 47, #1 Jan 2005  pp 122-127  

* Bonin, Huber et al. ''Ford, 1902-2003: The European History'' 2 vol Paris 2003. ISBN 2-914369-06-9 scholarly essays in English; reviewed in Len Holden,  "Fording the Atlantic: Ford and Fordism in Europe" in ''Business History '' Volume 47, #1 Jan 2005  pp 122–127  

* Brinkley, Douglas G. ''Wheels for the World: Henry Ford, His Company, and a Century of Progress'' (2003) [http://www.amazon.com/Wheels-World-Company-Century-Progress/dp/B000BZ99PQ/ref=sr_1_1?ie=UTF8&s=books&qid=1198975451&sr=8-1 excerpt and text search]

* Brinkley, Douglas G. ''Wheels for the World: Henry Ford, His Company, and a Century of Progress'' (2003) [http://www.amazon.com/Wheels-World-Company-Century-Progress/dp/B000BZ99PQ/ref=sr_1_1?ie=UTF8&s=books&qid=1198975451&sr=8-1 excerpt and text search]

* CAR Research Memorandum. "The Impact of the U.S. Economy of a Major Contraction of the Detroit Three Automakers" (Nov 2008) [http://www.cargroup.org/documents/FINALDetroitThreeContractionImpact_3__000.pdf online edition]

* CAR Research Memorandum. "The Impact of the U.S. Economy of a Major Contraction of the Detroit Three Automakers" (Nov 2008) [http://www.cargroup.org/documents/FINALDetroitThreeContractionImpact_3__000.pdf online edition]