The LA Times, quoting an Edmonds analyst, says, “not much.”
Automakers and dealers admit that the program is of marketing value even if cars don’t qualify. (If I were employed right now, I’d see if I could swap my 8-year-old Corolla out on a Prius, to be honest.) But, they also admit that the program brought in people who had money to buy, or almost buy, anyway. The car-buying pool may have been considerably shallowed after this rush.
On cash for clunker sales, it was clearly NOT formerly Big Three vehicles on the sales side of the equation. As for as vehicles bought, four of the top five are Japanese makes. So, any surge in former Big Three sales is due to other reasons, or the “cash for clunkers” as a marketing come-on.
Showing posts with label automobile dealers. Show all posts
Showing posts with label automobile dealers. Show all posts
August 04, 2009
December 04, 2008
Bankruptcy likely part of Big Three bailout?
It’s the only way Washington can get a guaranteed deal to force bondholders to take less than 100 cents on the dollar, for one thing.
Other benefits, especially of a prepackaged bankruptcy?
1. It would likely cost less money to We the People.
2. It would be easier to structure things such as dumping two brands by GM.
3. Related to No. 2, it’s the easiest way of working around protectionist state laws that make it hard for automakers to close dealers.
Folks like GM’s Rick Waggoner have to say “bankruptcy is not in our plans” for public, i.e. stockholder, consumption, until details of a pre-packaged bankruptcy are ironed out. But, it’s the way to go.
And, using confidential sources, Reuters reports GM and Chrysler will accept some sort of bankruptcy filing as part of the price of doing business with Congress.
Other benefits, especially of a prepackaged bankruptcy?
1. It would likely cost less money to We the People.
2. It would be easier to structure things such as dumping two brands by GM.
3. Related to No. 2, it’s the easiest way of working around protectionist state laws that make it hard for automakers to close dealers.
Folks like GM’s Rick Waggoner have to say “bankruptcy is not in our plans” for public, i.e. stockholder, consumption, until details of a pre-packaged bankruptcy are ironed out. But, it’s the way to go.
And, using confidential sources, Reuters reports GM and Chrysler will accept some sort of bankruptcy filing as part of the price of doing business with Congress.
December 01, 2008
Too many car dealers for Detroit’s cars
As a newspaper editor, where we’ve been seeing the ad dropoff for a year, I know this is true, but the “degree of its reality is still hard to fathom.
And, as the story notes, the decline of American dealers affects not just local papers, both small dailies and non-dailies. Little League teams, community projects and more all take a hit.
But, whether we, the Big Three, or the National Association of Automotive Dealers — which lobbied for state laws that prevent Detroit from eliminating dealers — like, more and more Big Three dealers are going to go on the closure, or foreclosure, block.
The Japanese pioneered the big dealer concept long before AutoNation et al came along. And, that strategy, too, is paying dividends.
And, as the story notes, the decline of American dealers affects not just local papers, both small dailies and non-dailies. Little League teams, community projects and more all take a hit.
But, whether we, the Big Three, or the National Association of Automotive Dealers — which lobbied for state laws that prevent Detroit from eliminating dealers — like, more and more Big Three dealers are going to go on the closure, or foreclosure, block.
The Japanese pioneered the big dealer concept long before AutoNation et al came along. And, that strategy, too, is paying dividends.
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