Thursday, December 18, 2008

Is this the end of Chrysler?

Chrysler has shut down it's manufacturing for at least a month. Will they ever open their doors again?

It looks to me that it will be at least a year before the auto industry sees any demand at all, and if Chrysler's doors are closed for the year, I can't imagine them opening their doors again.

What does that mean for US manufacturing? What does it mean for everyday people living in the US?

I personally see it as the beginning of the end for US mega-manufacturing companies for durable goods. I think the next five years will bring about a new wave of boutique manufacturing.
The money for investment of huge factories and even huger output just isn't going to be available this next decade.

We will find out that small and flexible, high quality manufacturing from people we know is value that we can depend on. We will buy less, and we will demand that what we buy will be useful and will last. Cheap junk fueled by the mindless marketing has seen it's hayday and has started it's decline. Unfortunately, the US automakers have put themselves in this category and unless they can dramatically change, their industry will disappear too.

New York Times article about the Chrysler shut down.

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