Monday, January 26, 2009

Having problems dealing?

From Detroit News: GM, Chrysler press dealers to order cars.

General Motors Corp. and Chrysler LLC on Sunday urged dealers to keep ordering new cars and trucks in coming months despite an industrywide sales slump that has kept vehicles piling up on dealer lots.

During a meeting at the National Automobile Dealers Association convention, Chrysler told dealers it will launch a major push to get retailers across the country to order vehicles, and consumers to buy them, ahead of a March 31 deadline to convince the government the automaker can survive.

Dealers seemed willing to respond to the call for more orders, but consumers are likely to remain skittish about big-ticket purchases like cars with the economy in a recession. "Nothing has changed for consumers," said Paul Melville, an industry expert with consulting firm Grant Thornton LLP. "Credit is still tight, consumers don't have cash and the fear factor is still in existence."

Wesley Lutz, owner of Extreme Dodge/Hyundai in Jackson, went into Sunday's session prepared not to order any new vehicles this month but changed his mind after listening to Press.

Lutz now plans to place an order Tuesday even though he already has more than a 100-day supply of vehicles on his lot.

Press made a straightforward pitch to convince Lutz to order more vehicles.

"He said, 'Do you want the Kool-Aid or do you want reality?' " Lutz said after the meeting. "He promised us we'd still be open for business in April. That's pretty powerful."


He has a 100-day inventory.

And he's buying more.

Man, these dealers are st00pid.

Any dealers dumb enough to keep buying vehicles in the Greater Depression deserve exactly what's coming to them, and no, there will be no TARP to bail them out.

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