Report: Automaker R&D spending took huge hit during recession
Wards Automotive reports that in 2009 automakers from around the globe cut research and development dollars by 14.3 percent over 2008 spending. That's $12 billion dollars in spending that could potentially keep new products and innovations out of dealer showrooms for months or even years. Ford cut its development spending most according to the report, down 32.9 percent year-over-year. GM is next with cuts of 25 percent, followed by Toyota with a 19.8 percent cut and Honda with a 17.7 percent trimming. Of the automakers ranked among the top 20 R&D spenders world-wide only Volkswagen increased spending in 2009.
So will the R&D cuts of 2009 lead to delayed products and technology? In the short-term, no. Ford, which cut spending the most on a percentage basis, has seen its sales skyrocket while VW's U.S. sales have been weak. But over the long haul we're pretty sure that delays are inevitable, because $12 billion in R&D is no drop in the tech bucket.
[Source: Wards Automotive]
- Our favorite reveals from the LA Auto Show
- You can probably get a great deal on a new Fiat
- 2016 Holiday Gift Guide
- Is it time to buy a Pontiac Aztek?
- Fastest-depreciating cars in the United States
- Most and least efficient car companies