Leaner and meaner General Motors and Chrysler- this is the objective now of President Obama. In a statement, the President said that the two big US auto companies must emerge from their re-structuring efforts as leaner and meaner companies, and he added that a substantial market awaits these two companies if they make the right decisions. Just last week, the President has pushed for laws that would pave the way for cleaner cars. He talked about plans for higher efficiency standards for cars and trucks and also tougher rules on emissions.
For those looking for discounts, then now is the right time to start getting one. There are hundreds of Chrysler dealerships that are expected to close by June 9th, and since they are closing in less than 3 weeks this means that cars on their displays and parking lots are for sale tagged at great discounts. This is good news for shoppers who love Chryslers, but sad news for the dealers who will have to say goodbye to their businesses. Around 789 dealerships around the country have lost their franchise agreement with Chrysler. How serious are these discounts? It is said that though prices of vehicles may not go down by 50 percent, some expect that a good percentage of vehicles’ prices can be slashed by 30 percent. But in a more realistic computation, the prices can be discounted by 10 to 15 percent. Now this is good news to those really looking for better discounts these tough times.
The June 9 is the deadline for these dealerships to unload their inventory to other dealers or to consumers. In ordinary times, Chrysler can buy back the unsold units but since the company is in bankruptcy then it can no longer do that.
After many months of fighting for its life and staying afloat thanks to federal aid, the country’s third largest auto maker, Chrysler, files for bankruptcy in New York.
Hours after the Senators ended the life of the bailout for the auto industry, the Bush administration has announced that it might use the taxpayers money supposedly to bail out the banks in order to keep the automakers out of trouble. This announcement basically reverses the previous stand on how to help the ailing industry, and comes only hours after the Senate killed the bailout proposal. It was the president’s own party which ended the life of the bailout proposal. The said proposal had the support of congressional Democrats in the White House but in their version of the bailout, they intend to use a different source of funds.
Certified cars, at least. That’s the plan that will be undertaken by Chrysler. This should be good news for fans of Chrysler vehicles who don’t have enough budget just yet for a new one. This development follows the pioneering tie-up between eBay and General Motors Corporation that the two group announced early this year. The partnership is expected to cover and to market over 15,0000 certified pre-owned vehicles of its Chrysler, Jeep and Dodge brands on the eBay motors site. This agreement between eBay and general Motors follows GM’s program announced in February to list all of the inventory of certified pre-owned cars at some 3,900 GM-affiliated dealers listed on eBay. The listing is now live on the site.
With the recent developments in the market, GM has set a moist eye on selling used vehicles. One reason why automakers like GM have been pushing for used vehicles in the market is the fact that US auto sales are expected to drop to near 15 million units in 2008. The number 3 US automaker has sold more than 122,000 certified used cars in 2007. Chrysler’s used car sales are up by eight percent, while the figures for new vehicles have dropped more than 20 percent. The Chrysler’s line-up cover models from 2003 to 2008 with less than 65,000 miles and these cars are all reconditioned to meet the automaker’s standard. Of course, these vehicles come with warranty. These vehicles carry an eight year warranty, or 80,000 mile powertrain warranty, roadside assistance and rental car allowances. Other than eBay, Chrysler is expected to seek tie-ups with search engines like Cars.com and AutoTrader.com in an effort to help dealers market used vehicles.
eBay is an online auction and a shopping website wherein visitors of the site and businesses can buy and sell goods. Other than the US site of eBay, the company also operates localized version of the site in thirty other countries. eBay also owns PayPal, Skype and Stubhub.
Looks like the high price of gas is here to stay. And Ford sees the writings on the wall. The demand for their vehicles have been going down, no thanks to escalating gas prices. It’s a market shift they say, and Ford says that it is scaling down its production. A big reversal after the company has announced a surprising first quarter profits. But it isn’t just Ford who feels the pinch of the times. General Motors and Chrysler also saw their market affected. This is because these two companies heavily relies on profits delivered by their trucks and SUVs. The changing face of the market saw a diminished popularity for SUVs and trucks as consumers find ways to address escalating gas prices. Ford said that they would drastically scale back production and step-up cost-cutting efforts in response to the sharp drops in sales and sport utility vehicles. Ford has now forecasted that the industry demand for cars and light trucks will stand at 14.7 million 10 15.1 million vehicles and this figure is considered as the lowest in more than a decade. Alan Mullaly, chief executive of Ford said that they saw a real change in the industry demand in pickups and SUVs in the first two months of May. He added that this seems to be a tipping point. One indicator of the market performance is the sales of pickups. Pickup sales are closely tied to housing and construction activity. Last year the sales of pickups accounted to 14 percent of the US market, but this year the figure is down to 9 percent.
As a response, Ford will cut down its North American production by 15 percent in the current quarter, as well as 15 to 20 percent in the third quarter and 2 to 8 percent in the fourth quarter. Though production of pickups and SUVs will be cut, it is expected that Ford will increase its output of more fuel-efficient models like the Focus and the Fusion.