Car dealerships the new endangered species? - Top Stocks Blog - MSN Money
 
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Car dealerships the new endangered species?

Posted Oct 01 2008, 02:52 PM by Kim Peterson
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One in five U.S. car dealerships could bite the dust in the next year, according to a study out Wednesday. Sales are down. Credit is harder to come by, and even the people who have good credit are leery of making big car purchases.

Potential investors are staying away, and no wonder. Car sales in this country have declined for 11 months straight -- the longest slide in 17 years, according to Bloomberg.

And September was a particularly ugly month. Carmakers are reporting results for the month, with negatives across the board. Ford's U.S. sales fell 34% from the month before, and Toyota was down 32%. GM's drop was 16% and even Hyundai saw a 25% drop.

The biggest Chevy dealer in the world shut down its dealerships last week, and others are sure to follow. Once upon a time, these dealerships could have received loans to carry them through the bad times. But nowadays, a loan to a car dealership is about as scarce as, well, a customer walking through that dealership.

Related reading:

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Comments

 

That's the way it works. You cannot have 1000% growth non-stop for 2000 years. Wake up America!

It seems to this midwestern retiree that Detroit's unions greed and old technology has finally done what 2 world wars could not, brought America industry to the brink.  I cannot understand how corporations with legions of accountants could have collectively been asleep to the desires of the customer for some many years. It make me sad to see a whole industry disappear due to the excesses of so few.

The America of the new century is a mere shadow of the old America and we had better change quickly or we will be the England of the Future!!!!!!!!!!!!!!

american loylity  may have helped the auto industy of this country. what happened to buy american.... and keep out jobs in this country.... how many of you drive american cars....

The Chevy dealership mentioned is headquartered in Florida.  It was revealed in the lcoal press that the dealership has about 5 Millions Dollars in lawsuit judgments against them.  GM pulled the dealership's floor financing  several weeks ago - and this  added to the lawsuits caused the dealer to go belly up.

Cool!  We sell used cars only, so we're going to make a killing on people not wanting new cars with sky-high prices.

The world has become flat in communcation and finances and the access to this flatness has cause great greed and it has literally flattened our economy.  The nest egg of the US has been eaten from the inside out and we will soon be only a shell of the superpower that last two generations have built.  Out of this collapse will emerge three or four superpowers and the US, if we educate and work hard enough could be one of those.  The first generation builds it, the second generation milks it and the third generation looses it.   So, okay fourth generation, lets start building it again.

Last time I checked Toyota and Honda both provide Americans with jobs, Kelly.

It doesn't help that auto-manufacturer's with their huge rebates and employee pricing have perpetuated the belief that consumer should live beyond their means.  These rebates allow consumers to roll negative equity so they can have the latest and greatest, yet they don't seem to understand (or want to) how it is done.  They don't understand if you buy a car with a MSRP 40k that has a 10k rebate it is now a 30k car.

Don't get me wrong about this, but I and every relative I have only buys American cars. I own a Ford and a Mercury, but the good old boy network at Ford and GM are inept as they come. They cannot make a good fuel-efficent even if you gave them the plans. They actually have a good car in this category, but they won't sell it in the US because it would cost too much. Toyota and Honda can do it but the US car makers can't. Go figure that one out. Maybe it's the overpaid Unions, corrupt Politicians and incompentent management to contend with while they hold out their hands for tax-payer money. The car companies are a complete sham full of corrupt crooks. Just like the govt. There all bubbling fools that have no foresite and  have loaded bank accounts filled with taxpayers money.

The greed of a few will destroy us all. It's time to put a stop to it! The government is so big on sticking its nose in everything, handing out regulations left and right. Let's see some regulations on corporate America!

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