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What the US auto industry is back with a vengeance.
So much so is becoming export dynamo the future looks bright.
Exporting over three times the amount from ten years ago.
June sales are up big for Detroit's Big Three automakers after another strong month is -- another sign the auto industry is back on track let's bring in Carl Brower.
The senior analyst -- Kelley blue book.
-- -- things for coming in why is this happening.
There's a lot of factors I think the auto industry was the bright spot for a long time in this economy but now the rest the economy is helping out with things like housing starts and even some drop in unemployment.
So everything's kind of working together and it's just continuing to push these sales higher.
Our American auto plants more efficient these days.
They are you know there were a lot of unfortunate things that went through the auto industry in the last five years in terms of some of the restructuring.
But at the end of the day it actually you know did make it stronger it made a more efficient.
The -- -- more efficient the pay structure and the cost structure building the cars and more efficient and this makes them more globally competitive and that's why.
They're gonna have a better chance on the global scene which is good -- it's a global market now there really isn't much delineation between these these companies.
I remember when people said the American auto industry is dead and it's never ever coming back mainly because of high labor costs.
And the fact that there weren't that innovative when he came right down to and that was a problem for a very long time what happened to change the culture.
I think near death experiences can change anybody including the automotive industry.
And they realize that they could no longer iron kind of assume that if they build it people will just buy -- there were -- many other competitors out there and the economies didn't work in terms of their cost structure and they had to fix.
All of that you know we've had we've seen -- pops here month to month June in particular looked very good is -- -- specific reason.
That month did well -- car sales and exports.
There were a lot of incentives on things like trucks the truck market is growing and the manufacturers make.
A lot of money and they want to establish a real strong foothold in that segment.
So all the domestics were putting a certain amount of incentives on the trucks plus there's two new trucks out there the Chevy Silverado.
And the ram 15100 to both new and we're substantially updated and they're really good they're really good so a lot of these contractors they're ready for a nice new truck.
Yeah I definitely I mean.
People been waiting to buy for so long now -- Chinese manufactures do you think have the most an appeal to the overseas market which hit the makes in the models.
When you get right down to.
Well you know General Motors has had a foothold in.
China for some time.
-- it's been favored brand and that their country for decades and they're just growing that right now.
Ford is is coming a little later but they're building very rapidly as well in that in that part of the world.
Volkswagen of course is is very strong in China as well so that's really where the action there's a lot of them are jumping and very quickly.
Q how -- we ameliorated the labor cost problem is that that the labor costs and other countries have gone up.
I think it's mostly they've done a two tier pricing structure pay structure for a lot of these plants now so that the people -- been there awhile didn't really lose their pay but the new people coming in were at a lower pay -- And they can work toward the higher pay -- And I think -- system more efficient about things like time often vacation.
And benefits everything just got more efficient which it needed to do.
Because you'd rather have a smaller well employed force -- -- -- that can't be sustained at the cost and it was costing them.
Well yea that's all I have to say I am glad to see the industry -- do better Karl thanks for coming on tonight -- talking to us about it.
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