Automotive industry competition, more not less

Implications: More competition, not less is required within the automotive industry. Positive results will eventually be rewarded by a free market.

Analysis: For about a decade now, I have seen the consolidated automotive industry shed its assets. Generally the assets which have been shed were those that were not currently or soon to be not profitable, such as auto parts and financial arms.

The need to shed positive assets is now more important, whereby creating smaller more efficient companies (with separate boards and executive crews) and more importantly competition.

Seems to me that the free markets will reward the successful companies which can emerge from a continual shedding of assets by the automotive industry.

More new innovative automotive companies, using bleeding edge technologies and styles, which focus on direct management of a single line of automotive product, and perform by the competition of the industry should produce some very strong new automotive companies.

Since the beginning of the 1960's my family and friends have been involved in the automotive industry. Throughout those decades, there was good times and bad. Today, (granted, along with an overall valuation decline in the automotive industry), we observe a meltdown of the US automotive stock and bond valuation. I have personally watched our automotive stock & bond portfolio decline in valuation at an alarming rate.

A positive turnaround must come soon, and I can only imagine that somewhere out there the answer lies in the spirit of an up and coming execute ready to gather all of our positive assets and champion the US auto industry of the future.