The auto industry did not fare well in the market crash between 2008 and 2009, evidenced by the numerous car manufacturers that took government bailouts merely to stay afloat. Once the general economy began to rise, questions of a potential auto industry rebirth arose. Critics are split on the matter, but the evidence overwhelmingly supports that the auto industry is going back to what it once was, albeit gradually.
Interestingly enough, the possibility of an auto industry rebirth might depend on the example of the only major car manufacturer that didn't take the easy way out during the 2008 market crash. You may remember that Ford Motors not only refused to take the government bailout that Chrysler and General Motors snapped up, but the auto manufacturer actually pulled in more money than ever. Because consumer trust increased in the company, it made more sales and came out of the recession stronger than ever. Auto experts agree that the future of any auto industry rebirth is largely in the hands of industrial companies that manage to pull themselves up by their own bootstraps and maintain consumer confidence.
Advertising is also a great way to test the temperature of a potential auto industry rebirth. Although advertisers faded away during the darkest periods of the recession, 2014 has marked a sharp upturn not only in auto industry sales but in new vehicle advertisements as well. You can take this as a sign that advertisers are more confident in the fact that consumers are ready and willing to buy their cars, justifying the incredibly pricey production values that go into making persuasive advertisements.
Another major factor in the potential auto industry rebirth is the presence of new, often radical fuel technologies. From hybrid cars to vehicles that use alternative fuel sources, there are a variety of options waiting to hit the market. Many of these options will help you save money when it comes to the most expensive aspect of owning a car. Tesla Motors is a media darling that has had some difficulty breaking into the American market, but its foreign prototypes have proven to be wildly successful. Mashable explains that Tesla cars run on lithium-ion batteries to create a fuel system that runs entirely on electricity. Not only is this system extremely energy efficient, but it is cost-effective and different enough from the rest of the market's products to completely revolutionize the auto industry. In fact, more than one auto manufacturer has come out to express concerns that such a radical technology could revolutionize the industry to the point where it puts traditional manufacturers out of business.
Industry transformations seem to come along only after severe downturns like the one the auto industry has seen. In those periods of lapsed sales and manufacturing crises, car manufacturers can either collapse with the imploding industry around them or raise the standard and push the industry into its next evolutionary stage. Thanks to manufacturers like Ford and Tesla, the idea of an auto industry rebirth seems not only possible but imminent.
(Photo courtesy of Vichaya Kiatying-Angsulee / freedigitalphotos.net)
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