Detroit automakers in crisis

The financial crisis has claimed many corporate victims, but I think (hope?) the big domestic players will survive in some form.

Of the three, Chrysler looks to be the most vulnerable because it’s the smallest and the most concentrated in the North American market. Still, the massive TARP cash infusion bought it some time, and the deal it announced with Italy’s Fiat conglomerate could prove to be a great move, if approved by the Feds, because it’ll let Chrysler market some sweet European cars here, hopefully including the tiny Fiat 500, and Alfa Romeo’s MiTo and Spider.

After spending 77 of its 100-year history as the number one automaker in worldwide sales, GM finally gave up its title to Toyota last year. It sold 8.4 million cars and trucks in 2008, to Toyota’s 9 million.

Even in second place, though, the General is still such a freaking behemoth I just can’t see it failing without the world imploding around it. Beyond the hundreds of thousands of people it employs directly or through suppliers, it also funds more than 400,000 active retirees. I expect a midwestern president and labor-friendly Congress won’t let GM fail.

Ford is also in a good position. It’s finances are comparatively healthy, it’s doing well on JD Powers & Associates’ long-term dependability surveys, and it’s unveiled some compelling new products over the past few months. I’m especially fond of the Ford Fusion Hybrid, which seats five comfortably yet gets more than 30 miles to the gallon in mixed driving, and the Flex crossover wagon, which is comfortable, well-built, and good looking in a Bizarro Mini sort of way.

While many individual vehicles and model lines may go the way of the dodo (bludgeoned to death and eaten by sailors!), the U.S. industry as a whole should persevere in some form.