Changes

== Manufacturers ==

== Manufacturers ==

All the major car companies have three roles: they design cars for the future, they build cars, and they sell them through network of locally-owned dealers. Until recently the car-makers built practically the entire car.  In the 21st century, however, the makers build their own engines but purchase nearly all the other parts from independent parts companies, then assemble them.  Several thousand parts companies now operate in the U.S.; the largest are Delco, Visteon, American Axle (as well as the tire makers). They employ more factory workers than the car makers do, typically at much lower wages. Blue collar workers at the Big Three (GM, Ford and Chrysler) are unionized and are paid on average $55 an hour (including benefits). Blue collar workers at the "transplants" in the U.S. (Toyota, Honda, Mercedes, etc.) are not unionized and are paid on average $40 an hour (including benefits.  The automobile industry in Canada is integrated with the U.S. industry.

All the major car companies have three roles: they design cars for the future, they build cars, and they sell them through network of locally-owned dealers. Until recently the car-makers built practically the entire car.  In the 21st century, however, the makers build their own engines but purchase nearly all the other parts from independent parts companies, then assemble them.  Several thousand parts companies now operate in the U.S.; the largest are Delco, Visteon, American Axle (as well as the tire makers). They employ more factory workers than the car makers do, typically at much lower wages. Blue collar workers at the Big Three (GM, Ford and Chrysler) are unionized and are paid on average $55 an hour (including benefits). Blue collar workers at the "transplants" in the U.S. (Toyota, Honda, Mercedes, etc.) are not unionized and are paid on average $40 an hour (including benefits.  The automobile industry in Canada is integrated with the U.S. industry.

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%.

===Bankruptcy scenario===

===Bankruptcy scenario===

== See also ==

== See also ==

* [[Chrysler]]

* [[Chrysler]]

* [[Henry Ford]]

* [[Henry Ford]]

* [[General Motors]]

* [[General Motors]]

* [[Public transport]]

* [[General Motors]]

[[Category:Business]]

[[Category:Business]]

[[Category:Economic history]]

[[Category:Economic history]]