NEW ORLEANS — The weather in New Orleans was chilly and overcast, with a thick haze hanging in the air all day. In other words, it mirrored the sentiment in the auto industry.
Judging by the attendance at this year’s National Automobile Dealers Association conference, the forecast for 2009 is pretty dreary. Estimates from expo participants ranged from a 40% to a 70% decline in attendance Conference-goers referred to volume as “light” or “quiet,” but one exhibitor heading out early summed it up this way: “I just left my booth. It was dead.”
Dealers are in the throes right-sizing their businesses, reducing headcounts and struggling to get inventories in line with demand.
Even lender participation at the show is muted, as some companies have pulled their booths or canceled their annual dealer soirees.
In a press conference today, NADA Chief Economist Paul Taylor predicted the 12.7 million new-vehicle sales this year. But lenders I talked to are bracing for a SAAR in the 10-million-unit range. For the most part, financiers are focused on making it to the end of this difficult time, whenever that might be.
