Auto Industry Year in Review

With the new year fast approaching it’s as good a time as any to go ahead and look back on the year 2007 for the auto industry. The auto industry grew overall with the number of cars sold worldwide totaling 53 million. While GM continued to hold the lead in sales over Toyota with 9.1 million in sales there is no doubt Toyota is definitely closing in. It sold 8.5 million cars in 2007 and it’s probably only a matter of time before they become the world leader in car sales. US automakers continued to stagnate, suffering from perceptions of poor quality, or in the case of most Chrysler vehicles, very real poor quality.

Japanese automakers continued to cement their position as the producer of “green” cars, with Toyota’s Prius continuing to dominate that segment of the market. Aside from sucking the fun out of driving, hybrids also allow for some increased gas mileage and less noise. DaimlerChrysler decided the relationship wasn’t working and called it quits, resulting in the sale of Chrysler to Cerberus, a private equity company. Chrysler is now mired in financial troubles and recently fears were sparked of an eminent bankruptcy due to statements from CEO Bob Nardelli.

Big debuts were also made with Honda unveiling its svelte new Accord, particularly nice in coupe trim and plain in sedan form. Nissan unveiled its new GT-R easily overtaking the corvette as best bang-for-the-buck supercar by providing Porsche 911 Turbo performance at nearly half the cost. BMW’s new wunderkind the 1 series should be a huge hit combining the incredible turbocharged inline six motor producing 300 horsepower and 295 lb-ft of torque with a smaller car, but at nearly $35,000 stock, will it cannibalize sales of the iconic 3 series?

Speaking of the 3 series, Mercedes-Benz replaced its lethargic C class with a new one that should prove much more capable of competing.

Audi’s first ever supercar the R8 premiered to much success, winning many design awards, as well as enthused buyers. However, there’s always been a Gentleman’s Agreement in Germany between the big three luxury automakers with BMW building sporty cars, Mercedes-Benz building luxurious people carriers, and Audi providing the pinnacle of technology such as their famed Quattro all wheel drive system. But in 2007 the agreement was shattered with Audi and Mercedes-Benz breaking into BMW’s territory. Audi also made a vow to become the #1 luxury automaker in the world. Volkswagen also made a similar declaration, boldly predicting they’d be in Toyota’s place by 2010. Meanwhile Porsche waits patiently for the holidays to pass so they can buy out Volkswagen. 2007 was an exciting year and everyone’s maneuverings should provide for an interesting year of news in 2008. Happy New Year to all of you reading this, all 3 (maybe) of you.

Written on December 31, 2007 in Automobiles by Quan Vo. TrackBack URI.