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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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The death of the minivan (and Chrysler?)

 

Comments

 

Consumers have been taking it in the out door for long enough!

Everyone unite for an about face!

People can say what they want about where american cars are built, but keep in mind that the bottom line dollars still stay in the USA. Where do the profits for Japanese cars end up, in JAPAN! Toyota, Honda and Nissan don't hire near as many employees  in america as the Big Three do.

With being in the car business I can tell you the two things that have sunk the big three....and no its not the product they are better than ever.. 1) The American public. Please remember folks that the profits go overseas. 2)Greed from all of the corp exec's that have taken so much for so long... now thats

American car companies, mostly GM and Ford, have been churning out unimaginative poor quality vehicles for years, relying on their fleet subsidies and government tax breaks.  I'm surprised they haven't already gone under.  

Their only chance is to eventually go into bankruptcy protection where they can break all their union contracts, gut 90% of their middle & upper management and get some fresh minds in there that want to build fuel efficient high QUALITY vehicles.  

So does this mean the we should invest in Prozac. I think their doing pretty good right about now, If not they will be. Everyone wants to blame someone else. Its their fault for doing it, its ours for letting them. Every Empire in the history of man has fallen, we have front row seats. The sad part is we did pay for them.

I own a Nissan dealership and this so called credit crunch is non existent. We are having virtually no problems loaning people money. If you could have bought a car two years ago and have not tanked your credit and still have a job, then you can still get financed. Do not listen to the gloom and doom created by our lovely media. It is nowhere near as bad as they claim.

Unions were good for this Country for awhile. The wealthy Car Mfgrs. needed to deal fairly with the People making them RICH. But when these Car Mfrs. are paying 3 generations of retirees pensions with no end in sight & the ASIANS bringing their Hi end & low end cars, it did the U.S. Market in. When 60% of manufacturing a car is nothing but labor & Benefits costs, we got problems Americans.

Yet we were/kept  letting the ASIAN People come over here in droves & take tours & Pictures of our Plants. We felt sorry for them after dropping the Big One on them. And now, they pretty much can design, build & sell a car better than us. We relied on the Arabs & their Cheap Oil & in the end they screwed us. Alnd this DEPRESSION we're in, it's all  over OIL. When you have CHEAP OIL, the money flows in all Industries. If not, look at all the Businesses effected by this. Yeah, we'll end up like the ROmans & Self Destruct. Thanks to GREED, Stupidity & POLITICIANS!

LOL I saw this coming a long time ago, this collapse is NO surprise  to me! Detroit, well they were caught with their pants down, and of course  they wanted to sell you the gas guzzling tanks that now no one wants. We had to have the biggest, Detroit couldnt build a big enough battle ships to suit the US consumer. And the govt did nothing to change this, neither dems or pubs in any administration, so there at fault too. And the US consumer couldnt spend enough, wopping credit card debt, something we diidnt have fifty years ago, and housing prices in the stratospher, since when is a little three bedroom starter house worth 300k?? Then of course people started using their houses as ATMs cause they all wanted to live like millionaires, so they squandered their equity, now their broke in debt and soon to be unemployed and many homeless!  Think this is going to get any better soon guess again,  start storing food water gas etc etc dont spend on credit buy only the basics and hold on till the storm is over and learn from this!

What's good for GM  is good for America? Just doesn't work that way GM. Thought you had learned this lessson back in the 80's. Remember? Multi dealers under one owner=corporate mentality and feeds bottom line thinkers only. How about the good old formula of 1 committed dealer for each dealership with personal hands on management and strong community involvement. Just doesn't happen with multi dealership owners.

exactly

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