24/7 Wall Street often has some good financial and economic writing, but has now taken to predicting the imminent doom of ten companies, three of which are in the automotive sector. Apparently, Volvo, Mitsubishi, and Road & Track are all terminally ill. Let's take a quick look at the blog's points and whether or not we think these companies are going down.
Road & Track - Magazine subscriptions are down across the industry, and Hearst publishing owns both Car & Driver and Road & Track. Given that Road & Track also just had a lot of layoffs and moved to Ann Arbor, MI into the same office as Car & Driver, we can see why one might think that the two mags will merge this year. That said, Road & Track just invested quite a bit into a new format, look, branding, and even staff. It wouldn't make sense to not give those investments some time to pay off.
Verdict: We think R&T is safe for at least a few years.
Volvo - Sales have been dropping since the S60's new car smell wore off, and this does mean it's been a weak year for Volvo, we'd still be shocked to see the company go. Volvo is now owned by the Chinese conglomerate Geely, which has not hidden the fact that it's always looking for ways to get into the American market.
Verdict: We don't think Volvo of America is going anywhere as long as it's Geely's only foothold on the continent.
Mitsubishi - The Lancer is crap, the EVO is a niche car that can't prop up a brand, the i-MiEV is crap, the Outlander isn't a stand out, but it at least isn't crap, and the Galant is the worst new vehicle on the market, hands down. Mitsubishi even took to making up fake quotes from fake publications for its website because nobody has ever complimented the Galant which, as a mid-size sedan, should be the company's main bread winner.
Verdict: We still can't believe Mitsubishi of America didn't fold in 2009.
[via 24/7 Wall Street]