| In the last few years, the US automakers have | | | | A year ago with gas prices at the highest they |
| made a return to classic style muscle cars. These | | | | had ever been, industry analysts were criticizing |
| cars have been designed to look nostalgic and | | | | American automakers for not having better |
| very similar to their early 1970s counterparts. | | | | offerings of small cars to compete with the |
| Ford started this new trend with the new | | | | Japanese and European automakers. I would have |
| Mustang in 2005. With styling very reminiscent of | | | | to agree with that sentiment. As much as the gas |
| the 60s Mustangs, the car was an instant hit. Ford | | | | prices have changed over the last six or seven |
| had the market cornered since GM had | | | | years, it seems as if American companies have |
| discontinued the Camaro in 2002 and with | | | | tried to move away from small 4 cylinder cars |
| Chrysler lacking a V8 rear wheel drive muscle car | | | | and produce more V6 and V8 powered cars, |
| as well. In the last year, this has changed with the | | | | which in hindsight was not the right decision. By |
| introduction of the new Challenger and then just | | | | doing this, they have allowed Toyota, Honda and |
| recently, with the introduction of the new | | | | others to gain more market share in a super |
| Camaro. Car enthusiasts are happy to see these | | | | competitive market. Both GM and Chrysler do |
| cars back and the question becomes, how long | | | | need to present stronger offerings in these |
| will they last? | | | | markets. |
| In the past three months, GM and Chrysler have | | | | However, since gas prices dropped dramatically |
| both sought bankruptcy protection to help reduce | | | | late in 2008, the sales of trucks and SUVs have |
| debt and allow them to continue building cars. GM | | | | risen substantially. Toyota, which had a very long |
| has sold off many of its brands including Saturn, | | | | wait to buy a Prius a year ago, cannot give those |
| Hummer and Saab. The federal government is | | | | cars away even with huge incentives today. The |
| now the primary shareholder in both companies. | | | | point is clear: Americans want their big engine cars |
| The government plans to put new management | | | | and trucks as long as gas is affordable. When gas |
| into place to change the lineup of cars both | | | | rises, the market shifts towards smaller more fuel |
| companies are producing to focus on small cars | | | | efficient cars. |
| and less large engine cars and trucks. It will be | | | | At this point, it does not make sense for |
| interesting to see how consumers react to this | | | | American car makers to make a dramatic shift |
| change. | | | | away from the cars and trucks that have kept |
| The area where American automakers have been | | | | them alive in recent years into small cars that no |
| most successful in the last 20 years has been | | | | one has proven they can sell. We know they can |
| trucks, SUVs, and coupes and sedans with larger | | | | sell performance cars and trucks. Try going to a |
| engines. No muscle car enthusiast is going to want | | | | local dealer today to buy a Challenger or Camaro. |
| to replace his Mustang with a Honda Civic. Ford | | | | Most dealers do not even have any and if they |
| tried that in the late 70s with the Mustang II and | | | | do, they will not be there for more than a day or |
| it was a disaster. | | | | two. |
| To me, the heart and soul of the American auto | | | | In light of everything that has happened in the car |
| industry lies in performance cars and trucks. This | | | | industry in the last year, it will be interesting to |
| is where the American auto companies have been | | | | see what the future holds for the muscle car. Are |
| able to dominate the market. Honda, Nissan and | | | | we repeating the 1970s where high gas prices and |
| Toyota have all released new full size trucks in | | | | emissions will help kill off the muscle car again? Or |
| the last five years and the sales of these vehicles | | | | are we seeing a rebirth of the muscle car that will |
| still pale in comparison to the sales of the | | | | survive in light of the current economic condition? |
| Silverado, Sierra and F150. | | | | Only time will tell. |