General Motors
Market Capitalization: $2.9 billion
Employees: 252,000
The company lost $38 billion in 2007
Market Share (light vehicles): 22.2% (in 2008); 28.7% (in 2000)
How it got here: A long-term management failure. GM could not adapt its cars and production systems to be consumer-focused and globally efficient.
How to fix it: A new labor agreement will help, as will making plants more flexible. But GM has to make cars people love so that its price per car – and profit – rises.
Best hope for future: Much is riding on the 40-m.p.g. Chevy Volt hybrid electric, but GM models like the Malibu have to produce too.
Ford
Market capitalization: $6.8 billion
Employees: 87,700
The company lost $2.7 billion in 2007
Market share (light vehicles): 15% (in 2008); 23.5% (in 2000)
How it got here: After recasting itself as a greener company, Ford got waylaid by the success of its SUVs in the cheap-gas years. When prices soared, it has no great cars to sell.
How to fix it: Ford's future is pegged to producing small and medium sized cars, including hybrids, that it can design and sell globally. Still strong in pickups.
Best hope for future: The bet is on the 2010 Fiesta, the first product of the One Ford Strategy. Available in Europe, the U.S. version will be strikingly similar.
Chrysler
Privately owned
Employees: 55,000
The company used up $3 billion in cash in its last quarter.
Market share (light vehicles): 11% (in 2008); 14.5% (in 2000)
How it got here: After a disastrous merger with Daimler, the company was sold to private-equity firm Cerebrus. Chrysler's big truck, big power posture got hammered by Big Oil.
How to fix it: Chrysler has contracted with Nissan and VW to make vehicles for them. Perhaps a bigger linkup is in order. It needs a partner to share costs.
Best hope for future: Chrysler's current new car program is focused on a small car that will be built by Nissan and on ENVI, its in-house electric platform.
Source: Saporito, B. "Is this detroit's last winter?" Time, December 15, 2008: 35-41