As General Motors (NYSE: GM) follows Chrysler into bankruptcy protection, Oxford Analytica believes US Automakers could emerge stronger from the crisis.
“The economic crisis has accelerated ongoing restructuring in US (and global) auto production. However, restructuring has not sounded the death knell for unionised auto production, nor the decline of US manufacturing, ” OxAn says in Automakers may re-emerge strengthened.
Unionized domestic auto production in the United States will emerge from the crisis leaner and more competitive, and under new (labour-influenced) management.
“Paradoxically, efforts to cut costs and downsize in non-unionized auto production may provide scope for increased unionization efforts in foreign ‘transplant’ factories, such as those operated by Toyota (TM) and Honda (HMC).”
For regularly updated anaylst commentary on GM’s bankruptcy filing, see Alacra StreetPulse.
