Grinch Strikes Auto Industry
Detroit has its "big 3" auto investors and all of them are predicting a sales slump next year. Looks like the Grinch has struck the auto industry!
One of the predictors is Jerry York, an advisor to billionaire investor Kirk Kerkorian. Another is financier Wilbur Ross. Then there's Thomas Stallkamp, a former president of Chrysler. All are negative on next year's auto industry outlook, with predictions of a 10% sales reduction.
Detroit went through a similar sales slump back in 1991 when sales fell 11% and the economy was slumping in general. Same thing back around 1982-3. Maybe this is just a ten year thing and the middle Eastern war delayed it a few extra years?
Then again maybe the housing market mess and the current sluggish economy is dampening consumer spirits, causing more caution when it comes to spending.
Whatever it is, the predictions are that Detroit will deal with it by cutting production instead of juicing up the rebate machine. So don't count on seeing zero rate loans and generous rebates or big price discounts next year.
If your car or truck is running right, get it serviced often and keep driving on down the road (right past those shiny, expensive hunks of iron on the front row of the dealer's lot down the street). If you've got a lemon car or a lemon truck or a lemon motorhome though, now is the time to do something about it. As the economy tightens up in the coming year, so will the factory's willingness to help out consumers who bought bad products and are now stuck.
If you've got a lemon, call us. Getting rid of them is what we do. Everyday.