Over the past few years, the global economic crisis left a huge impact on the automotive industry, even leading to the bankruptcy of General Motors and the Chrysler Group, yet somehow, the top 10 automakers managed to stow away more than $221 billion in hard cash by the end of 2013, says a study from Global consultancy EY.
To get an idea of what kind of money we’re talking about here, according to data sourced from the United Nations for 2012, that’s almost as much as the annual GDP (Gross Domestic Product) of entire countries like Israel (~$241 billion) and Greece (~$249 billion), and more than Pakistan (~$215 billion), New Zealand (~$171 billion) and Ukraine (~$176 billion).
The survey found that car companies are increasing their stockpile of cash mainly because banks “have been reluctant to offer loans” with EY saying that they managed to do so “despite the crisis and partly in reaction to it”
What will they do with all this money? According to the study, most of it will eventually end up being used for new product development, special alliances that will allow carmakers to enter promising markets such as North Africa, the Middle East and Southeast Asia, and “other growth strategies”.
The report, which comes to us from the Detroit News, did not mention which automotive groups / brands comprise the top 10 list, but Toyota, VW and GM must surely be in it.
By John Halas
Story References: EY via Detroit News