It’s been six years since America’s auto industry received its Federal bailout that saved it from collapsing. At present, the sector is looking all rosy, with increased sales, state of the art upgrades and an optimistic forecast for the automotive industry for the coming year. Nonetheless, 2014 was a mix bag of a bit of both good and bad for the industry.
Auto industry witnesses shining performance in 2014
According to information available, the sale of new cars touched the 6% mark this year, with US automakers expected to sell over sixteen million vehicles. In terms of manufacturing, about seventeen million vehicles (both cars and trucks) were manufactured across the country this year. The year also saw the introduction of high-tech cars as well as the modernization of vintage best-sellers.
The auto industry also saw some downs this year!
The one disappointment for the auto industry this year was the large scale recalls of cars across the board by car brands including GM and Toyota. Auto industry experts have called 2014 the worst year in the history of America’s auto industry as far as recalls go. On the whole, automakers recalled over 50 million vehicles (both cars and trucks). In other words, about 1 out of every 5 cars on the road suffered critical manufacturing defects.
Devastating auto recalls from GM and Toyota!
Because of defective ignition switches as well as air bags, GM had to recall about 30 million vehicles worldwide. In addition to the global auto recall, it also had to pay a $35 mn fine and set up a compensation fund for victims. Similarly, Toyota was slapped with a $1.2 bn fine and recalled a total of 10 mn vehicles. The fine on Toyota was the biggest criminal fine ever slapped on an automaker in the United States.