Support Federal Loans to US Automakers

Please support federal loans to the Big 3 US Automakers. At first I thought that Chapter 11 Bankruptcy was the way to go for the Big 3, but after seeing the possible consequences I have changed my mind. Unless it a perfectly prepackage Bankruptcy there is too much risk if even one of the Big 3 file Ch 11. The job losses would be tremendous, the suppliers would have to file Ch 11 soon after, the Federal Pension Guaranty Corporation would have to cover hundreds of billions of dollars of pensions, billions of dollars of health care benefits would be lost for hundreds of thousands of employees and retirees, and the US could fall into double digit unemployment spirally the economy into a serious depression.

The claims that the Big 3 do not make vehicles that the people want are unfounded. GM is still the most popular manufacturer in the United States. Yes, they sold more cars than Toyota in 2007. Ford has produced the first Hybrid SUV (Ford Escape Hybrid) and Chevy will be the first major manufacture to offer an electric vehicle (Chevy Volt). The problem is that the Big 3 have been handcuffed with major liabilities imposed on them by the United Auto Workers (UAW) for higher wages, pensions, health care, and other benefits. While the Big 3 have been paying out $29/hour for unionized autoworkers plus hefty benefits Toyota, Honda, Nissan, and others have been allowed to bring there production from oversees into southern states with no import taxes and instead hand outs to entice them. These companies do not have unionized workers either. This gives foreign manufactures an unfair advantage to produce vehicles in the USA. The Big 3 are not in trouble because they do not make the right products, but because the US has allowed foreign manufactures to come in and produce vehicles in the US at a much lower cost because they do not have to offer the same pensions, health benefits, or wages that domestic manufactures do.

So please tell Congress to support loans to the Big 3 or we could endure an economic depression not seen since the 1930's. Why should we give hand outs to foreign manufactures and not support the backbone of American industry the Big 3?

State of the Automobile Industry

Currently the automobile industry is experiencing some of the most dire times in decades and maybe ever. It has been a perfect storm of decreased demand, credit crunches, ballooning inventories, and decrease vehicle margins. However despite what the media might lead you to believe financing or leasing a vehicle is still possible. In fact VW has some of the strongest incentives in years and right now customers can experience some of the best deals ever as dealers struggle to liquidate heavy inventories. Although financing has tightened, financing a vehicle is virtually unchanged for people with credit scores above 600. The auto financing industry did not experience the same problems that mortgage companies did because they have always known that cars are hard to find to repossess, and that they always depreciate. Therefore their loan structure never allowed for incredible losses like the mortgages did when houses were viewed as investments that always appreciated.

Over the next months you will probably see many dealers closing their doors. I would predict that most of these dealers will have domestic franchises. The optimist in me sees these days a great chance to expand our dealerships as stuggling dealership go up for sale. Hopefully people will ingnore the gloom and doom media and purchase a vehicle during these times when the best deals can be found.

Parts #32 in the USA!

Congratulations to the parts department for a much improved YTD ranking of 32nd in the country in terms of VW parts purchases. Hopefully we can end the year in the top 25 and be in the top 10 next year.

#1 in Area 49!

Congratulations to the sales team for selling the most new VW's in the CO, UT, and NM region. It was also great to see that we sold 45% more new vehicles than October of 2007 in a market that was down over 30% year over year. Keep up the good work!