Recovering auto industry faces more competition in 2011

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Strong early activity from two of the original Big Three automakers has the industry cautiously cheery as 2011 rounds out its second week.

The Los Angeles Times reports car purchasers in Japan are more geared toward acquiring models from General Motors ( GM )-line Chevrolet and Ford ( F ) than they are a Toyota ( TM ). GM models are the top foreign seller in China, a rapidly surging market.

The Detroit Auto Show, the central event for the North American car industry, is set to kick off January 15.

But not everything is entirely on the upswing.

"We have concerns," Rebecca Lindland, an automotive analyst at IHS Global Insight, told the publication. "There is just so much competition in the marketplace, especially from fast-growing companies like Hyundai and Kia. And this fall the negotiations with the UAW could be very contentious. The workers are going to want some of those profits."

Chrysler, the third of the Big Three is gradually capturing market share after recovering last year.

"The auspices are a lot better than they were a year ago," Chrysler chief executive Sergio Marchionne told the publication.

The field has widened and the American automakers had to enhance their product after insolvencies and bailouts during the past two years.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Personal Finance , US Markets

Referenced Stocks: F , GM , TM

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