GM is killing its Oldsmobile division, cutting its worldwide salaried workforce by 10 percent and closing an aging assembly plant in Britain as part of a plan to reduce European production capacity by 400,000 cars. President Rick Wagoner likely will order more such moves in the coming months because GM brands aren't selling well enough to pay the automaker's bills and deliver a profit. Even Ford Motor Co., the relative darling among Detroit's automakers, is staring at billion-dollar losses in Europe, appalling declines in market share there and continuing pressure to deliver on its promise of being focused on shareholders and customers at the same time. We are witnessing the early glimmers of yet another Reckoning for Detroit. It's powerful trucks and solid cars from Toyota, Honda and Nissan.
Consumers are less loyal, even in Metro Detroit itself.
And many of the cars and trucks competing for GM, Ford and Chrysler customers show a better understanding for shoppers' needs and self-image. It shouldn't be this way for Detroit's automakers, but it is. Get ready for the ride.