The News Review:
- Auto dealers brace for more low sales with results due Tuesday
- MARK PHELAN Nissan’s auto show pullout to reverberate
- Local Pillars Auto Dealerships Teeter as Big Three Decline
- US auto industry’s health affecting Silicon Valley chip makers
- Slovakia EU’s Detroit maneuvers around meltdown
- AUTO INDUSTRY SALES
- Congress Prepares to Reconsider Aid Package for Auto Makers
Auto dealers brace for more low sales with results due Tuesday
Detroit Free Press United States
This year however November sales were further disrupted by the sour economy and presidential elections early in the month. Congressional hearings with the leaders of Detroit’s three automakers and the UAW also might have played a role some dealers told the Free Press. The sight of the auto executives pleading for federal money might have encouraged some would-be consumers to hold off on their purchases for fear that the companies were headed for bankruptcy court. Dealers say consumers wouldn’t want to buy cars and trucks from bankrupt automakers because they would fear their warranties wouldn’t be honored. “I think the threat of bankruptcy could be having an effect” Kahan said noting that he has heard complaints from consumers about the attitude of the automakers. “I was pretty disappointed” Kahan said. “I thought they gave a very poor performance.
MARK PHELAN Nissan’s auto show pullout to reverberate
Detroit Free Press United States
If anybody in Washington is paying attention this may help convince them that it’s not solely local mismanagement that landed the Detroit Three in the soup. Everybody’s in hot water and Ghosn recently said he wouldn’t be surprised to see several automakers fail because of the global economic mess. • Nissan’s abrupt reversal of its decision to also skip February’s Chicago auto show is a slap in the face to its Detroit-area Nissan and Infiniti dealerships. Nissan would not have gotten much corporate PR mileage from the unveiling of its UPS-style NV2500 delivery van at the Detroit show but the dealers were counting on factory support to generate sales. The decision to stiff its loyal dealers by declining to bring crowd pleasers like the new Z-car and Cube will reduce traffic at displays the dealers have decided to mount on their own dime. The lack of a first-rate display stand and Nissan-trained product experts adds insult to injury. • Nissan’s departure could also weaken support for expanding Cobo Center and diminish the Detroit show’s importance to automakers.
Local Pillars Auto Dealerships Teeter as Big Three Decline
New York Times United States
survive many believe a comeuppance is inevitable among dealerships; indeed for years the nation has had more dealers for domestic brands than warranted by the sales volume of the Detroit automakers. The economic toll of a mass failure of dealerships around the country has already begun to harm the broader economy. In October alone 20000 employees of auto dealerships lost their jobs nationwide more than half of those who were newly unemployed in the retail trade according to the Labor Department. The auto dealers association estimates that new-car dealers produce a $54 billion annual payroll for 1. 1 million workers and nearly 20 percent of the retail sales and sales taxes in small and large communities alike. The auto dealers are not just businesses of course. Most of them are deeply rooted in their communities and each is a slice of Americana — their big flags flying their radio advertisements compelling attention and their Little League sponsorships and other charity helping to improve the lives of local people.
US auto industry’s health affecting Silicon Valley chip makers
San Jose Mercury News USA
And if Ford Motor Chrysler and General Motors go belly up as some experts fear the repercussions in the valley could intensify. “As soon as the automotive industry coughs a lot of other companies get a cold” said Thilo Koslowski who tracks that business for research firm Gartner. “That includes companies in the semiconductor industry and that includes a lot in the Bay Area.
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Slovakia EU’s Detroit maneuvers around meltdown
The Associated Press
1 2009 Slovakia joins the common euro currency. The average monthly wage is just euro650 ($840) with auto workers earning about euro800 ($1033) a month. That’s at least four times less than their counterparts in Germany earn and pension and health care costs are also a fraction of what the Big Three pay out. Although Slovak auto workers are unionized they’ve struck a deal with foreign carmakers to ensure their wages keep pace with inflation and raises don’t exceed a company’s productivity in percentage terms. “American unions are more drastic and demanding” says Kia’s Park. “We are listening to our employees trying not to have confrontations.
AUTO INDUSTRY SALES
Dallas Morning News TX
Commerce Department recently reported that October car and parts sales plunged just over 23 percent from last year. It’s just the latest chaos felt by the auto industry which is asking Congress for $25 billion in bailout money. So what’s it going to take to get people to buy cars again? Dealers economists and bankers say falling gas prices and lower heating prices should loosen discretionary spending a little. And Congress is considering a bill that would allow car buyers to deduct vehicle sales taxes. Paul Taylor chief economist for the National Automobile Dealers Association said two primary issues hamper car sales. "Evaporating home equity is the first-ranking impediment to purchasing a new car" Mr.
Congress Prepares to Reconsider Aid Package for Auto Makers
Wall Street Journal
–>Congress Prepares to Reconsider Aid Package for Auto MakersBy. The House Financial Services Committee scheduled a hearing for Dec. ET to review plans by the Big Three car makers to stabilize their beleaguered companies.