Of course, generic responses to the suffering of the dilemma of Auto stocks have something to do with a mixture of things, such as reducing the number of car sales, prices for gasoline and environmentally conscious consumers. However, after careful inspection, it is necessary to question why the automakers prefer not to change course to meet these new requirements, when you have a cheap car, high mileage and alternative fuel sources.

According to senior vice president and senior analyst at the car in Lehman Brothers, Nicholas Lobaccaro, the success of the automotive industry suffers due to external factors. “There is essentially complete lack of confidence in all stocks, not just the automotive industry. Wall Street will continue to peak for a long time,” Mr Lobaccaro reports of recent Las Vegas conference on automotive remarketing.

High interest rates on auto loans, high unemployment, thousands of mortgage going into foreclosure, and the continual growth of the population is a factor in the bottom line of the automotive industry. Consumers cut its full, in which a middle class family who first bought the car of their child in the dealer, are now looking to buy used cars. Fewer consumers trading up as they make the choice to continue the movement that they currently own. The credit crisis is almost closed financial market, which makes the sale of new cars next to impossible for a broad range of consumers.

Some of the reasons why the Auto stocks were also suffering can be placed directly on the shoulders of the automakers. Nearly forty years ago, new cars, used very little gas or no gas had been introduced at all, but now with new technologies, affordable car for the average consumer, it was almost abolished and forgotten. Instead of looking at long-term strategy, as well as the potential sales of these vehicles and other methods of marketing, the industry has chosen short-term benefits of the package. Advertisements for fast, powerful cars with Hemi engine and cruel Mileage gas were published throughout the various media. At present, however, it seems that the automotive industry is reaping the negative consequences of these actions, which some attribute to pure greed of the industry.

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