The global automotive industry shows a dramatic slowdown this year, influenced by successive crises that have hit the world economy since June 2007, leaving the crisis in mortgages to high-risk "subprime" the USA, which in turn, leads to the global financial crisis experienced by the big banks, rising by rising raw material prices, rising inflation rates in the world and soaring oil prices at a time when fears a recession in the U.S. economy is increasing.

The U.S. automotive market, the largest in the world, saw its sales drop dramatically during the month of July. 1.3 million cars were sold, representing a decrease of 20% compared to July 2007. Annual sales of cars reached about 12 million cars, representing the lowest level since April 1992.cars_1

The data published by the American Automobile Manufacturers show that sales of all-land vehicles (4x4) and pick-up, which consume lots of fuel, fell by 31.7% last July, while sales decreased by 13.5% for other types of cars due to higher fuel prices.

These data indicate that the giants of the automotive industry in the USA "General Motors and Ford and Chrysler" (the big three of Detroit) are experiencing very difficult situations. "General Motors", the first American automobile manufacturer of cars and number 2 worldwide, announced the decrease of sales from 26.7% last July, while sales of "Ford" have decreased by 22% and "Chrysler" 29%.

"General Motors" has also said it had suffered losses estimated a $ 15.5 billion (11 billion euros) during the second quarter of 2008, while losses" Ford "during the same period reached 8.7 billion (6 billion).

Analysts and economists believe that this year is the worst in the automotive industry in the United States over the past ten years, adding that the situation could worsen during the coming period.

During recent weeks, General Motors and Ford and Chrysler have decided to stop their offers "rent to own", which were very important for the marketing of auto sales in the USA, knowing that 20% of cars sales in the U.S. market goes through these offers.

The three enterprises have taken this decision after losses suffered by their financial branches because of the inability of tenants to continue paying the rent of the car. These difficulties have prompted the "Big three" to develop plans for restructuring, particularly in "4X4" and "pick-up" sectors.cars_2

For its part, "General Motors"has decided to close 4 plants that produce greedy cars of fuel. and said that it would sell some of its assets and reduce 20% of salaries.

For its part, "Ford" has decided to delete 15% of jobs, while "Chrysler" has decided to lay off 1,000 employees in addition to 2,400 other jobs decided last June.

Searching for a way out of the dilemma faced by American automobile manufacturers, the "big 3" are trying to form alliances with automakers outside the USA.

In this context, "Chrysler" is negotiating with the Indian "Tata Motors" the ability to sell these "jeep" in India. It also examines the possibility that the Italian "Fiat" rent some production lines owned by "Chrysler" in North America.

In Japan, vehicle manufacturers have been less affected by the crisis in the global automotive industry through economic fuel consumption small cars .

Toyota, the first automobile manufacturer in the world, is still relatively comfortable despite a drop of 12% of its sales in the U.S. market. "Honda" has been able to reduce the decline of its worldwide sales at 1.6%, while "Nissan", the third Japanese automaker and a partner of the french" Renault ", witnessed a decline in net profit of 42.8% during the first quarter of 2008 because of declining sales in the U.S. market.

On the other side of the Atlantic, European car manufacturers face a situation much less serious. They have been able to make profits despite high oil prices and declining purchasing power, thanks to increased demand on cars in emerging countries, notably Brazil, Russia, India and China.cars_3

In this framework, the french Group "PSV Peugeot Citroen" has announced that it produces an increase in net profits by 49% during the first quarter of this year to reach 733 million euros.

The German "Volkswagen" saw its net profit rise to 1.64 billion euros during the second quarter of this year, an increase of 35%, while the Italian "Fiat" had 646 million euros as net profit.

Despite these positive results, the European Automobile Manufacturers recognize that the coming months will be very difficult, prompting "Renault" to reduce its estimates for sales in 2009 when the group declared its intention to abolish 5000 jobs in its factories in Europe.

The question is now: The U.S. presidential Will help bring a new president at the White House who can find the perfect ways to revitalize the U.S. economy and therefore the world economy, which will have a positive effect on global automotive industry, especially after the democratic candidate for the presidential Barack Obama has called to sell 70 million barrels of oil from U.S. strategic reserves to counter the unprecedented rise in the price of crude?!