The Automobile Industry Under Concern
2010 was a year that brought better business conditions and brighter opportunities for millions of small businesses across the country. Automakers are grappling with a new and different market after the recession of the past few years. Americans will buy a million more cars in 2011 than the 11.6 million they bought in 2010. The future is brighter auto sales recovery will depend on sustainable job creation, leasing, which fell from about 27.5 percent of all new vehicle sales in late 2007 to 21 percent after the September 2008 financial meltdown, has bounced back to 28 percent, those who have taken pay cuts or experienced extended periods of unemployment may now be part of the used car market. Auto loan approval rates for consumers with FICO scores between 620 and 749 have recovered to the 85 percent to 90 percent range from 75 percent in late 2009, according to CNW Marketing. The surge of new models coming from nearly every new automaker should also bolster sales. Consumers are more willing to risk buying a new car if they are drawn to it emotionally, artistically or, in the case of hybrids or electric vehicles, by the desire to make a cultural statement.
It is said that U.S. auto sales in September fell by 27 percent hitting a 17-year low. This time though it wasn’t just the Detroit Three. The decline hit all of the automakers hard. •Nissan - 36.8 percent •Toyota - 32.3 percent •Honda - 24 percent •Ford - 34.5 percent •Chrysler - 32.8 percent General Motors Corp- with a 15.6 percent decline did the best. [/i][/b][/i][/b]
Auto financing companies are losing because of the rapidly declining value of pickup trucks
Take a look at the following:
The Recovery Gap
U.S. firms, sales revenue at publicly traded companies did rise more than 2.6 percent in 2010. At the same time, however, sales at privately-held companies -- a group that includes virtually all of the nation's small businesses -- dropped by nearly five percent this year.
Credit Crunch Woes
The fact that many small business owners fund their operations using credit cards and home-equity loans. And after tightening access to other lending options in 2009, many banks -- especially smaller community banks -- have done nothing this year to help smaller companies raise capital.
According to a recent survey (PDF) by auto trends research company R.L. Polk & Co., drivers are keeping their vehicles longer. The average length of ownership of both new and used vehicles has grown from 37.2 months in 2002 to 46.3 months in 2008, an increase of 24 percent. [/i][/b]
[/i][/b]
64 percent of consumers said that due to the economy, they are "very or extremely likely" to keep their current vehicle longer than they would normally whereas 81 percent said they plan to take better care of those vehicles.
According to the 2010 Auto Aftermarket Industry Association Fact Book, the auto aftermarket industry is expected to grow by 4.5 percent this year, which would be the largest jump in sales since 2002. [/i][/b]
[/i][/b]
Though the seasonally adjusted unemployment rate dropped to 9.4 percent from 9.8 percent in December, half of the improvement occurred because 260,000 people stopped looking for a job. When that happens they are no longer counted in the statistics. In fact, the labor force participation rate, 64.3 percent, is at its lowest level since the recession began. [/i][/b][/i][/b]
The institute estimates that about 4.4 million workers make up this invisible army of unemployed dropouts. If just half of them were counted as "officially" unemployed, the real jobless rate would be 10.7 percent. [/i][/b][/i][/b]
More than 26.1 million workers are either unemployed or underemployed. Of those, 6.4 million workers have been unemployed for longer than six months. [/i][/b][/i][/b]
The Nano, which is being manufactured in India by the Tata conglomerate (an Indian company), is being billed as the world's cheapest car, with a target price of US$ 2,500.
The U.S.-made vehicle that is getting the most buzz these days is the Tesla Roadster, a hot new sports car that can take you from 0 to 60 in about 4 seconds, and, by the way, happens to be all-electric. The Tesla is the brain child of Martin Eberhard, a high-tech entrepreneur. It's built in a town you've never heard of (San Carlos, California), about as far from Detroit as you can get in the continental U.S.
To be fair,Tesla Motors has yet to become an unqualified success.. It shows that there's always room for success, even in a stricken industry.
2010 was a year that brought better business conditions and brighter opportunities for millions of small businesses across the country. Automakers are grappling with a new and different market after the recession of the past few years. Americans will buy a million more cars in 2011 than the 11.6 million they bought in 2010. The future is brighter auto sales recovery will depend on sustainable job creation, leasing, which fell from about 27.5 percent of all new vehicle sales in late 2007 to 21 percent after the September 2008 financial meltdown, has bounced back to 28 percent, those who have taken pay cuts or experienced extended periods of unemployment may now be part of the used car market. Auto loan approval rates for consumers with FICO scores between 620 and 749 have recovered to the 85 percent to 90 percent range from 75 percent in late 2009, according to CNW Marketing. The surge of new models coming from nearly every new automaker should also bolster sales. Consumers are more willing to risk buying a new car if they are drawn to it emotionally, artistically or, in the case of hybrids or electric vehicles, by the desire to make a cultural statement.
It is said that U.S. auto sales in September fell by 27 percent hitting a 17-year low. This time though it wasn’t just the Detroit Three. The decline hit all of the automakers hard. •Nissan - 36.8 percent •Toyota - 32.3 percent •Honda - 24 percent •Ford - 34.5 percent •Chrysler - 32.8 percent General Motors Corp- with a 15.6 percent decline did the best. [/i][/b][/i][/b]
Auto financing companies are losing because of the rapidly declining value of pickup trucks
Take a look at the following:
The Recovery Gap
U.S. firms, sales revenue at publicly traded companies did rise more than 2.6 percent in 2010. At the same time, however, sales at privately-held companies -- a group that includes virtually all of the nation's small businesses -- dropped by nearly five percent this year.
Credit Crunch Woes
The fact that many small business owners fund their operations using credit cards and home-equity loans. And after tightening access to other lending options in 2009, many banks -- especially smaller community banks -- have done nothing this year to help smaller companies raise capital.
According to a recent survey (PDF) by auto trends research company R.L. Polk & Co., drivers are keeping their vehicles longer. The average length of ownership of both new and used vehicles has grown from 37.2 months in 2002 to 46.3 months in 2008, an increase of 24 percent. [/i][/b]
[/i][/b]
64 percent of consumers said that due to the economy, they are "very or extremely likely" to keep their current vehicle longer than they would normally whereas 81 percent said they plan to take better care of those vehicles.
According to the 2010 Auto Aftermarket Industry Association Fact Book, the auto aftermarket industry is expected to grow by 4.5 percent this year, which would be the largest jump in sales since 2002. [/i][/b]
[/i][/b]
Though the seasonally adjusted unemployment rate dropped to 9.4 percent from 9.8 percent in December, half of the improvement occurred because 260,000 people stopped looking for a job. When that happens they are no longer counted in the statistics. In fact, the labor force participation rate, 64.3 percent, is at its lowest level since the recession began. [/i][/b][/i][/b]
The institute estimates that about 4.4 million workers make up this invisible army of unemployed dropouts. If just half of them were counted as "officially" unemployed, the real jobless rate would be 10.7 percent. [/i][/b][/i][/b]
More than 26.1 million workers are either unemployed or underemployed. Of those, 6.4 million workers have been unemployed for longer than six months. [/i][/b][/i][/b]
The Nano, which is being manufactured in India by the Tata conglomerate (an Indian company), is being billed as the world's cheapest car, with a target price of US$ 2,500.
The U.S.-made vehicle that is getting the most buzz these days is the Tesla Roadster, a hot new sports car that can take you from 0 to 60 in about 4 seconds, and, by the way, happens to be all-electric. The Tesla is the brain child of Martin Eberhard, a high-tech entrepreneur. It's built in a town you've never heard of (San Carlos, California), about as far from Detroit as you can get in the continental U.S.
To be fair,Tesla Motors has yet to become an unqualified success.. It shows that there's always room for success, even in a stricken industry.