State of the US Car Industry

Already happening here, Holden dealership closed in Melb. Holden wont take them back so they are going to auction.
Cheers
Krakka

Check out the Pickles website for details of the new Holdens to be auctioned,although Ithink you may be too late.

The differences bewteen the US economy and ours are immense.

Without delivering a boring economics lecture the answer is NO.

We will in no doubt see some tough times, and yes some people will go broke, but not anything like what will happen in the US.

Two bob media comomentators running around telling us the sky is about to fall in are not helping.

Jim.

most of the major credit co's who provided the dealers with finance have pulled out of Oz...so its just a matter of time i'd say...
but holden is still saying that they are ok...what ever that means

It's more than the car dealers in the US, the whole industry looks like going under. Very interesting article on the ABC last week on the plea for a bail out of the industry. The unions have destroyed their own industry by demanding and securing some of the most incredible conditions imaginable. Great in good times but they are not prepared to relinquish anything to assist in maintaining their own industry. Worth a look if you want to understand the true nature of the industry and why the US vehicle market is about to go under.

Mick

Following news story out this afternoon…….

News Story

16:21 04Dec08 AAP-Vehicle sales plunge as global crisis hits the local market
By Tim Dornin

ADELAIDE, Dec 4 AAP - Vehicle sales in Australia have slumped with the global economic downturn taking a heavy toll on the auto sector.

The Federal Chamber of Automotive Industries (FCAI) said on Thursday 71,617 new cars and trucks were retailed in November, a plunge of 20,464 or 22.2 percent on the 92,081 sold in the same month last year.

The FCAI said the November result left the year-to-date market down by 2.9 percent compared to the same period in 2007.

But it said sales for the full year were still expected to top one million and give the industry its second best year on record.

It tipped total sales to reach about 1,019,000, below the record 1,049,982retailed last year.

FCAI chief executive Andrew McKellar said the November market reflected a further softening of economic conditions after demand fell by more than 11 percent in October.

"It is clear that people are being more cautious with their money as the magnitude of the global financial crisis deepens," Mr McKellar said.

"Certainly the most recent interest rate cut was well justified and it is hoped this will help restore some confidence and stability to the marketplace.

"On the upside, there are going to be some very competitive opportunities for anyone considering buying a car in the near future."
Toyota was the top selling company last month with 17,473 vehicles, ahead ofHolden on 9,719 and Ford on 7,233.

Toyota also led the market overall to the end of November with 219,984 vehicles, compared to 119,490 for Holden and 97,216 for Ford.

The company's senior executive director of sales and marketing, David Buttner, said Toyota was optimistic that recent developments, including the interest rate cut, would help lift confidence among private and business consumers.

"Interest rates are coming down fast and experts such as the OECD are predicting Australia's economy will continue to grow, avoiding a recession," Mr Buttner said.
"There is plenty of new-vehicle stock, which is fuelling extremely attractive deals across the country.
"While that means great buying right now, we also know that recommended retail prices on many imported vehicles are set to increase in the new year."

Holden had the top selling car in November, the company retailing 4,365Commodores to head off the Toyota Corolla on 3,486 and the Ford Falcon on2,555.

Other top selling models were the Mazda 3 (2,343), Toyota Yaris (2,153), Toyota HiLux 4x4 (2,075), Mitsubishi Lancer (1,922), Toyota Camry (1,820), Hyundai Getz(1,501) and the Toyota Aurion (1,481).

Have heard that Toyota in Melbourne are going to reduce they're build rate by about 120 vehicles a day next year and have already pulled 7 production days out of the first 1/4 next year. So you can bury your head in the sand if you think we are not going down the same path as the auto industry in the USA if you like.
But these are facts.
Cheers
Krakka

The US has a very over serviced dealership network which has always been difficult to support, even in good times.

Some US manufactures (Dodge, Ford etc) have 7000 plus dealers as opposed to 1500 Toyota Dealers in the US alone.
Its pretty clear that Toyota are showing why they are the biggest seller in the world and can continue to make money as opposed to the cut backs being seen in other companies.

I had a conversation with a senior banker who said that the banks were taking the view that manufactures will be offering interest free terms in 2009 just to support some sort of turnover.
Will be interesting to see if this happens and how they will get and support the finance for this sort of offer.

Interesting times me thinks!!