The retail auto industry is in trouble. You don’t need me to tell you that. Most everyone in and serving the retail auto industry is also aware that credit, not demand, is the biggest problem dealers are facing. The main focuses of credit are: a) the sudden and significant tightening of retail credit making it much harder for customers to secure financing; and, b) dealers suddenly being faced with the loss of their wholesale flooring or credit lines, with no substitute, making it nearly… Continue

With the Federal Reserve’s announcement today that Term Asset-Backed Securities Loan Facility (you wonder why they call it TALF?) would begin making loans on March 25th, my phone and e-mail went crazy. Auto dealers that had heard assumed (or at least hoped) that this would be a signal for money loosening up – capital starved auto finance companies (especially subprime) would suddenly have the spigots opened and business might finally return to “normal.” Field personnel for auto finance… Continue

I recently read an industry analysis written by Mark Scheiner on the demise of Saturn, now a brand in a huge state of flux within GM. In short he stated that it was a GM opportunity gone wrong. He stated, “The lesson here is that brands whether, they’re products or branding, need time to seed themselves. These are long-term investments in both capital and marketing with branding efforts surrounding them. Most importantly, the messaging needs to remain consistent across all channels, and… Continue

Thank goodness it is finally done! After nearly 30 days of pleadings, discussions, and conditions, the deal is done. GM and Chrysler can begin drawing up to $13.4 billion by the end of December and early January. I just hope the healing, especially with the retailers begins as quickly. My domestic clients from around the country have been continually reporting challenges selling new vehicles to consumers worried that they would have no warranty from a company in bankruptcy. The daily drone… Continue