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2008 crisis
== Manufacture ==
== Manufacture ==
Many of the world's major auto companies have plants in the U.S., and the U.S. companied have plants and subsidaries across the world, a pettern begun by Ford in the 1920s.
It is often difficult to tell if a car is a domestically or foreign produced vehicle simply by the name of the manufacturer. For example, in 2006 [[Japan]]ese manufacturer Toyota had 14 manufacturing plants in North America producing parts and cars such as the Camry, while American manufacture [[General Motors]] has operations in [[Mexico]] producing trucks such as the Silverado and Suburban for export to the United States.
It is often difficult to tell if a car is a domestically or foreign produced vehicle simply by the name of the manufacturer. For example, in 2006 Japan-based manufacturer Toyota had 14 manufacturing plants in North America producing parts and cars such as the Camry, while American manufacture [[General Motors]] has operations in [[Mexico]] producing trucks such as the Silverado and Suburban for export to the United States.
Major car companies include Ford, General Motors(or GM), [[Chrysler]], [[Toyota]], [[Nissan]], [[Honda]], [[Mazda]], [[BMW]], [[Mercedes-Benz]]. Major American based manufacturers include [[Ford Motor Company|Ford]] and [[General Motors]], produce several brands such as [[Ford Mercury|Mercury]], [[Lincoln (car)|Lincoln]], [[Chevrolet]], and [[Hummer]], however these often have many of the same "platforms" or basic car components.
Major car companies include Ford, General Motors(or GM), [[Chrysler]], [[Toyota]], [[Nissan]], [[Honda]], [[Mazda]], [[BMW]], [[Mercedes-Benz]]. Major American based manufacturers include [[Ford Motor Company|Ford]] and [[General Motors]], produce several brands such as [[Ford Mercury|Mercury]], [[Lincoln (car)|Lincoln]], [[Chevrolet]], and [[Hummer]], however these often have many of the same "platforms" or basic car components.
==Financial crisis==
In 2008 a series of damaging blows drove the "Big Three" (GM, Ford and Chryser to the verge of bankruptcy. Part of the cause was very high labor costs (much higher than the foreign plants in the U.S.), which prevents lower prices. 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 $4 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 mnoney 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 worrued about bankruptcy; GM's shares fell to 1942 levels. Intense debate is underway about a massive bailout, that would be in addition to a $25 billion loan Congress passed in September 2008 to assist in increasing fuel efficiency.
Intense discussions
== 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|electric cars]], hybrid cars and plug in hybrids.