2009: Auto Industry Year in Review
Robert Hayes
Issue date: 3/1/10 Section: Opinion
With the storm clouds of recession hovering over the nation, and the memory of the government's bailout of GM and Chrysler still on everyone's minds, no one was expecting the year to begin well for automakers, but reality was still far worse. January auto sales hit lows not seen in decades, with the overall market down by over a third. Chrysler saw its sales cut by more than half, and GM wasn't far behind.
The Chicago Auto Show arrived in February 2009 to take the world's minds off the industry's apocalyptic sales free fall, but new model introductions were few and far between. Dodge showed their new Ram Heavy Duty trucks, and Ford launched the Transit Connect, a new, compact twist on the delivery van. However, the real news at Chicago was the rebirth of a legend: the Ford Taurus SHO. Powered by a twin-turbocharged V6, Ford's Super High Output Taurus returned as a 2010 model, 11 years after the original went out of production.
The first of many management changes to come at General Motors began in March. Rick Wagoner Jr. stepped down at the end of the month at the request of the White House. The 32 year GM veteran was ousted to bring fresh, outside management to GM. His appointed successor? Fritz Henderson, a 25 year GM veteran, and the company's CFO. A dramatic show of the government's power over GM, to be sure, but not a significant management change. Henderson worked under Wagoner for years, and replacing one GM lifer with another did not raise confidence in GM's turnaround. Despite this, eager Camaro fans were greeted with the first examples of Chevy's reborn pony car trickling into dealerships at the end of the month.
April saw the first bankruptcy of the year. After its second federal bailout since 1979, and facing its worst sales year since 1962, Chrysler, LLC filed for bankruptcy on April 30th. Turin, Italy's Fiat announced that it would be taking the reins in Auburn Hills, but ownership of the new automaker is now firmly in the hands of the United Auto Workers, which holds 68% of the company. Chrysler's CEO, Robert Nardelli, a former Home Depot executive, was forced to step aside to allow Italian-Canadian Sergio Marchionne to take control of the struggling automaker.
The Chicago Auto Show arrived in February 2009 to take the world's minds off the industry's apocalyptic sales free fall, but new model introductions were few and far between. Dodge showed their new Ram Heavy Duty trucks, and Ford launched the Transit Connect, a new, compact twist on the delivery van. However, the real news at Chicago was the rebirth of a legend: the Ford Taurus SHO. Powered by a twin-turbocharged V6, Ford's Super High Output Taurus returned as a 2010 model, 11 years after the original went out of production.
The first of many management changes to come at General Motors began in March. Rick Wagoner Jr. stepped down at the end of the month at the request of the White House. The 32 year GM veteran was ousted to bring fresh, outside management to GM. His appointed successor? Fritz Henderson, a 25 year GM veteran, and the company's CFO. A dramatic show of the government's power over GM, to be sure, but not a significant management change. Henderson worked under Wagoner for years, and replacing one GM lifer with another did not raise confidence in GM's turnaround. Despite this, eager Camaro fans were greeted with the first examples of Chevy's reborn pony car trickling into dealerships at the end of the month.
April saw the first bankruptcy of the year. After its second federal bailout since 1979, and facing its worst sales year since 1962, Chrysler, LLC filed for bankruptcy on April 30th. Turin, Italy's Fiat announced that it would be taking the reins in Auburn Hills, but ownership of the new automaker is now firmly in the hands of the United Auto Workers, which holds 68% of the company. Chrysler's CEO, Robert Nardelli, a former Home Depot executive, was forced to step aside to allow Italian-Canadian Sergio Marchionne to take control of the struggling automaker.
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