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Can the Auto Industry Retool Itself To Build Rails? 897

knapper_tech writes "The scope of the auto industry troubles continues to increase in magnitude. The call to retool and develop new vehicles has been made several times already, but with all of the challenges from labor prices and foreign competition, how exactly can the industry retool itself to be more competitive? In light of superior competition facing losses, there doesn't seem to be enough room in the industry moving forward. In the context of finding a new place in the auto industry, the future isn't bright. Calls for no disorderly collapse of the cash-strapped big three and a reluctant congress can only point to an underlying lack of direction. However, consider two other standing economic challenges. The airlines have continued to struggle due to fuel prices and heightened security. Consumers backed off of SUV's due to high fuel prices, and while those prices have eased in the face of global recession, the trend will pick up again with growth in China and India leading the fight for resources. In short, things are moving less, and the industries that support the movement are in need of developing new products while consumers are in need of a cheaper method of transportation." Read on for the rest of knapper_tech's thoughts.

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