American Automobile Industry

The automakers also continued their trend of purchasing or investing in foreign automakers. GM purchased a controlling interest in Saab in 1990 and Daewoo Motors in 2001, and invested in Subaru in 1999 and Fiat in 2000. They also purchased the Hummer name from AM General in 1998. Ford purchased Volvo in 1999 and Land Rover in 2000. GM and Ford also established joint ventures with Chinese auto companies during this period. GM's joint ventures are with Shanghai GM, SAIC-GM-Wuling Automobile, and FAW-GM Light Duty Commercial Vehicle Co Ltd. Ford's joint ventures are with Chang'an Ford and Jiangling Ford.
While the American automakers were investing in or buying foreign competitors, the foreign automakers continued to establish more production facilities in the United States. In the 1990s, BMW and Daimler-Benz opened SUV factories in Spartanburg County, South Carolina and Tuscaloosa County, Alabama, respectively. In the 2000s, Hyundai and Kia opened plants in Montgomery, Alabama and West Point, Georgia. Also, several of the Japanese auto manufacturers expanded or opened additional plants during this period.
In 1998, Chrysler and the German automaker Daimler-Benz entered into a "merger of equals" although in reality it turned out be an acquisition by Daimler-Benz. Thus the Big Three American-owned automakers turned into the Big Two automakers. However, a culture clash emerged between the two divisions, and there was an exodus of engineering and manufacturing management from the Chrysler division. The Chrysler division struggled financially, with only a brief recovery when the Chrysler 300 was introduced. In 2007 Daimler-Benz sold the company to a private equity firm, Cerberus Capital Management, thus again making it American-owned.
The 2000s began with a recession in early 2001 and the effects of the September 11, 2001 terrorist attacks, significantly affecting auto industry sales and profitability. The stock market decline affected the pension fund levels of the automakers, requiring significant contributions to the funds by the automakers (with GM financing these contributions by raising debt).