While the auto industry here in America saw a bump in sales due to the Cash for Clunkers program, overall the year of 2009 will be remembered by many as a disaster. Massive amounts of dealers have been shut down, GM and Chrysler slind beneath the financial waves, and thousands of people lost their jobs. A story from The Economist says that we’re at the tip of the iceberg.

In the piece it is noted that despite the massive drop off in sales, not one major auto manfacturer has gone completely out of business. That is, of course, the result of massive infusions of government money into car companies the world over. If you have a head for business, or even a brain that is moderately functional, you can recognize that this is not a good thing.

Small cars will play a much larger role in the future of all car companies, but the Economist story rightly cites the fact that small cars are current barely profitable, at best. Major changes at all levels of the industry will need to be made in the coming years. Either that or governments all across the world will continue to prop up failing car companies.

You go ahead and read the piece. We’ll go ahead and put on our beer helmet.