The website 24/7 Wall Street has gradually become known for their annual predictions about which companies will succumb to the relentless grind of capitalism. Every year, they pick 10 companies they think will fail based on factors like declining market share, rising overhead costs and corporate disclosures. Naturally, their predictions have resulted in a mixed scorecard over the years but, right or wrong, their annual article is informative and fun to read. This year, 24/7 Wall Street has singled out two well known car manufacturers (Mitsubishi and Volvo) as well as one automotive “buff book” (Road & Track) for their predicted chopping block. Your thoughts? Did they get it right?

From 24/7 Wall Street:

This year, we included two magazines — Martha Stewart Living and Road & Track. With print advertising in a multiyear decline, some magazines have weathered the decline better than others. These two, however, have suffered sharp drops in advertising revenue over the past five years. Magazines also carry the heavy legacy costs of printing, paper and distribution — a problem not shared by online-only competition.

Yet another industry with two brands on our list is automobiles. Car sales are growing in the United States, but brands with market shares under half a percent cannot compete with companies that either produce high- luxury models like Mercedes-Benz or multiline giants like General Motors. Suzuki pulled out of the American market last year. Mitsubishi and Volvo will follow soon.

 

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