Mike Maroone Discusses The Current State of the U.S. Auto Industry - Quality and Stability

      Appearing on local NBC in South Florida, Mike Maroone  -  President and Chief Operating Officer of AutoNation,  - the largest auto dealer in the United States, addressed questions about the current state of U.S. vehicle production, design, and engineering quality. He also speaks about  the most recent structural changes occurring in the U.S. auto industry, and how they will affect strategic planning for companies in the future. 

     Mr. Maroone is convinced that the manufacturing quality of the American auto industry is "back on track" and he explains that the newest Ford and GM models are of the  highest quality, which is on par with any other cars or trucks built in the world.  Mike Maroone went on to state that, in his opinion,  the choice of Frederick A. (Fritz) Henderson as the new CEO of General Motors was an excellent choice. ...and that [Fritz] he has done a good job in steering the company through its most recent crisis.   'GM is now a very healthy company and is poised to compete on the world stage.' ....The car manufacturer additionally has fantastic products in the pipeline such as the new Camero and Equinox.' 

     Looking at Ford, 'they have fantastic pipeline of products as well,'  Mike Maroone continued, ‘and their product cycle is  very fast  and efficient from… " the artist's conception" …"to the road"….  with a high level of engineering and manufacturing quality'   .... 'Ford has done a wonderful job with the Ford Fusion, the Edge, and the Escape models…These products are fantastic.'   

     Ford also has an advantage over GM and Chrysler because of not having to accept government money to maintain operations. Though they did have a significant debt burden to address, they have done a good job in restructuring  this debt and Alan Mulally, who did not come from the auto industry, has made all the right moves to improve the future of the company both financially and strategically.‘

     Mike Maroone believes... "A lot of credit needs to be given to the Governemental Auto Task Force and the Obama administration for the progress that has been made recently within the domestic auto industry. "Without the efforts of the administration, and all involved,  GM and Chrysler would be gone".

    'Also  the "Cash for Clunkers" program has been a resounding success, and this will continue to provide a stimulus for domestic auto sales and  production. .....'There was a catastrophic lull in sales because of financial devastation experienced last year and the bankruptcies of General Motors and Chrysler earlier this year....Mr. Maroone continued; ..... 'as a result of the programs recently put in place, the "purchase consideration" by our potential customers seems to be returning slowly to our dealerships.'   The "Cash for Clunkers" program has catalyzed the market environment markedly and 'the selling environment for the dealers has stabilized"  hopefully conditions will continue to improve.'

     ..... Because of the significant  improvements from the financial turmoil that befell the U.S. financial markets last year, and AutoNation's ability to weather this most recent downturn, the company has begun to ramp up its orders for new cars and trucks .....AutoNation is also "on the acquisition hunt". 

     The conditions for opportunity are beginning to outweigh the  recent "risk environment" for the company, Mike Maroone concludes, ....consequently, AutoNation will be moving forward.

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NBC South Florida