Auto industry in international reshuffling

DETROIT, June 11 (UPI) -- The crisis in the U.S. auto industry has turned into an international game of musical chairs that is not likely to end soon, an industry analyst said.

"We're likely to see more (international) consolidation in coming years," said Jeff Shuster, the executive director of automotive forecasting at industry research firm J.D. Power in Detroit.

International reshuffling of car companies is not new. In the 1990s, as Japanese companies were struggling, Ford Motor Co., DaimlerChrysler AG and Renault SA swooped in to take advantage of their troubles.

Recent reshuffling includes Fiat of Italy taking over Chrysler to form the Chrysler Group. Canadian parts supplier Magna International has purchased 55 percent of General Motors Corp's European operation. Chinese manufacturer Sichuan Tengzhong Heavy Industrial Machinery Co., purchased the Hummer brand from GM.

German automaker Porsche, meanwhile, is considering a sale of 25 percent of its stake in Volkswagen to Qatar in the Middle East for $3 billion, The Detroit News reported Thursday.

The shifting, prompted by a plunge in U.S. auto sales, will put longtime world leader GM, at No. 5 in sales behind Toyota, Volkswagen, Ford, and Renault-Nissan said Michael Robinet at CSM Worldwide.

"It's a consolidation by necessity because of an imploding market," said Jim Hall at 2953 Analytics.