Fiat's Chrysler and Asian Players Are Leading The Car Market Comeback

With a middle class that could to balloon to 1.4 billion people by 2030, China has become a lifeline for automakers looking to keep their profits afloat in a weak global economy. Through October 2011, more than 15 million new vehicles have been purchased in China, according to ChinaAutoWeb*. That’s about 3 percent higher than a year ago.

A recent article in the New York Times noted the first fruits of the Chrysler and Fiat merger (see A Merger Once Scoffed At Bears Fruit in Detroit and Will the Dodge Dart be a high-caliber replacement?).

Since its beginning in 1980s the US car industry went through many booms and busts, as its first major decline was during the Great Depression in 1927, followed by WWII and the most recent one in 2008 - the severe debt crisis, which led to a deep recession in the industry.   

Earlier this week, it was announced that Toyota officially surpassed General Motors as the world’s leading auto manufacturer, reclaiming a title it lost to the American company in 2011 following a series of huge recalls that tarnished the public’s perception of the manufacturer.

It's the electric car Chrysler and Fiat don't really want to make, but that isn't to say the 2013 Fiat 500e is a half-hearted attempt.

By ValueMax:The long-term value of U.S. auto stocks, such as Ford (F) and General Motors (GM), is now threatened by a declining market share.