RSS
Home
As February auto sales plummet, 'repair don't replace' becomes the new mantra
Print
Email
RSS
Subscribe
.jpg)
Yesterday, the major automakers delivered sales figures for the month of February. Not that anyone thought the numbers would be rosy, but following the trend of most economic news nowadays, they were far worse than expected.
Some analysts prognosticated that January could mark the “bottom” of the auto industry’s sales crash as hefty incentives and a flood of government-infused cash into the credit markets would finally help push hesitant buyers into showrooms. Analysts across industries have been unable to draw a bead on the end to the economic turmoil and as February’s numbers prove, the automotive industry is no exception.
According to an Associated Press report yesterday, though overall auto sales were up 5% from January, they were down 41% over the same period last year – hardly a cause for celebration. GM and Chrysler, whose fortunes and hopes for additional government support hinge on their ability to return to viability, led the way in sales decline, down 53 and 44 percent respectively.
The AP article cited that GM may follow beleaguered banking giant Citibank and offer special assistance to note holders who lose their jobs, including allowing them to keep their vehicles for a period without payment. Even Toyota, seen by some as the benchmark for quality and operations efficiency, saw sales drop by some 41 percent last month. Toyota, who recently wrestled the position of global sales leader from struggling GM, has been forced to seek aid from the Japanese government for its finance arm.
If there are glimmers of hope to be found in the auto industry’s woes, it’s the boost for related sectors like used vehicles, public transportation and even auto parts. Autozone, the nation’s largest auto parts retailer, saw a 2nd quarter net sales increase of 8.6% percent, buoyed by consumers who increasingly are opting to repair their vehicles rather than replace them. An article in CNN Money indicated that last year’s skyrocketing fuel prices caused many consumers to hold off on all but the most essential vehicle repairs. As gas price have retreated however, repair spending has increased, boosting companies like Autozone.
Related Articles:
Add a Comment
.jpg)
Found on Road Dead. Fix Or Repair Daily. Factory Ordered Road Disaster. Four Old Rusted Doors. These are among the myriad of negative interpretations …
.jpg)
Building on the positive momentum of robust 2009 sales, Audi is pounding the pavement to get more of its products in front of potential buyers. Today, …
