For the "Big Three" now read the "Magnificent Seven"

1) According to the article, why are American car makers in a better situation today than two years ago?

The article explains the fact that two years ago there has been a financial crisis, which touched all sectors, including cars industry. Nevertheless, the dramatic situation has been resolve thanks to government bail-outs and economic strategies. Indeed, the bankruptcy of several firms has lightened the debt burdens and the government of the United States has helped the "Big Three" with the payment of bail-outs. Furthermore, today, some investment banks, like Morgan Stanley, improve the creditworthiness of buyers. In this way, consumers are no longer afraid to lose their money. These politic strategies permitted to boost consumption. Then, due to the crisis, the firms have closed a lot of factories and some brands have been ditched. They could fire a lot of employees that was not possible previously because of unions. Now, those firms can hire new workers, at lower rates. Moreover, the "Big Three", can count on their bestselling vehicles, especially the pickups, which are practically appreciate by American people.

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2) However, what threats do these American firms face?

However, the American firms have to face the competition. In fact, Ford, Chrysler and GM have been joined by world car makers like Toyota, Honda, Nissan and Hyundai/ Kia. The "Big Three" become the "Magnificent Seven". In addition, European car makers address American market. For example, Volkswagen sets up its new factory in Tennessee. The firm's boss strategy is to adapt his car to American taste. Moreover, the "mid-range" market is especially covets by Japanese, Korean and Chinese carmakers. And, the soaring petrol price leads the Americans to want less gas-guzzler. However, paradoxically, Toyota’s cars are criticized because of their low level of quality, but its discount offers increase its sales.