Auto Rescue Won't Jump Start Sales -- OK, we recognize this; but how is this situation any different from that faced by most other businesses in U.S.
From The Wall Street Journal:
The Bush administration's $17.4 billion rescue package delivered some holiday cheer for Detroit, but car dealers said it's only the first step to resuscitating vehicle sales that have slumped in the face of tight credit and sinking consumer confidence.
In order to get car sales moving at a better rate -- a key factor in making General Motors Corp. and Chrysler LLC financially viable -- consumers need easier access to auto loans and more confidence the economy will improve.
Auto sales have fallen to their slowest pace sine 1982, falling 37% in November from a year ago, according to Autodata Corp. Both foreign and domestic automakers have had to cut production in order to adjust for collapsing demand in the U.S. market. Honda Motor Co. this week slashed its profit outlook and Chrysler LLC idled all of its North American factories for four weeks starting today.
The Bush administration's $17.4 billion rescue package delivered some holiday cheer for Detroit, but car dealers said it's only the first step to resuscitating vehicle sales that have slumped in the face of tight credit and sinking consumer confidence.
In order to get car sales moving at a better rate -- a key factor in making General Motors Corp. and Chrysler LLC financially viable -- consumers need easier access to auto loans and more confidence the economy will improve.
Auto sales have fallen to their slowest pace sine 1982, falling 37% in November from a year ago, according to Autodata Corp. Both foreign and domestic automakers have had to cut production in order to adjust for collapsing demand in the U.S. market. Honda Motor Co. this week slashed its profit outlook and Chrysler LLC idled all of its North American factories for four weeks starting today.
posted by Sid Cottingham | 4:20 PM
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