Car Biz Buzz

Saturn has been in a precarious position for months. As General Motors is focusing on restricting and becoming profitable again, many brands under its wide umbrella have been at risk. Already Saab, Hummer, and Opel have found their way onto the chopping block. However, the fate Saturn, which has seen devastating sales despite a relatively fresh product lineup, has largely been unknown. It seems that now sources indicate the brand may be up for sale, and that there are parties that actually want to purchase the ailing brand.

Sources at Saturn have indicated that there is interest from investors in doing a spinoff to establish an independent Saturn brand. Additionally, there apparently are other parties that simply want to buy it. It is not currently known where these parties are other automakers, but perhaps one possible scenario is a Chinese or Indian automaker looking to get a foothold in the lucrative US market. Boston used car dealers say such as move would be a good investment as Such a purchase would give an Indian or Chinese automaker an instance dealer network.

In viability reports supplied to the U.S. Treasury in mid-February, GM said it would supply product to Saturn through the 2012 model year. Unfortunately for Connecticut Saturn and others, no further details were outlined as to a solution or potential buyer before that time. However, GM has formed a task force comprised of both GM executives and select Saturn dealers to determine the feasibility of a spin off or selling the brand completely.

Recently, General Motors had informed Saturn dealers that a team had been established to evaluate options for the Saturn brand. It’s expected that a clear plan may not be available until sometime in April. Meanwhile, Hartford Chevrolet knows all too well that sales continue to hurt Saturn and its parent. Sales in February fell 57.2 percent from last year, which accounts for a mere 6,338 vehicles. Continue reading ‘Saturn May Have Buyers’

Car dealers have faced plenty of hardships in recent months, and will continue to run into hardships. While the recent federal stimulus offers tax incentives for car buyers, it’s not all good news for car dealers. While money in the pockets of consumers is always a good thing amid falling car sales and weakened consumer confidence, new bailout plans from Chrysler and General Motors both have outlined ideas that may be even more costly to dealers.

While the automakers attempt to secure $38 billion in federal funding, the government first has to approve their restructuring plans. These plans include many hard decisions. For example, Middle Tennessee Chrysler dealers say Chrysler plans to cut dealer margins, production, and 3,000 workers. As dealers are facing problems, Chrysler dealers aren’t looking forward to reduced dealers and service contract margins. Chrysler executives say that Chrysler dealers must make sacrifices just as other Chrysler employees have. When it comes down to it, these steps must be executed should Chrysler hope to receive vital cash.

Some dealers have been outraged by further concessions being forced upon them, but other contend that it’s a small and minor step toward getting the industry back on track, which Philadelphia Cadillac dealers believe is an import goal for everyone. While there’s been no mention of changes to Chrysler’s brands, GM’s restructuring plan provides consolidation of its brands and dealerships. Additionally, the fate of some of GM’s brands, such as Saab, Hummer, and Saturn, remains somewhat unknown as GM’s restructuring has concentrated on its core brands, including Chevrolet, Buick, Pontiac, Cadillac, and GMC. While some are concerned about the fate of these brands, Louisville Chevy says that GM’s core brand will be most important in keeping the company in the black in the long run.

The effects have been felt less at pre-owned stores like Used Cars NC where the economy has helped to drive costs and prices down to a manageable level for customers.

Regardless of changes at Chrysler and General Motors, both automakers and their dealers are hoping that tax credit will help spur new car sales. The economy has kept many consumers from venturing into showroom, and with additional cash in hand Detroit Chevrolet dealers believe consumers will start spending again. The chief economist for the Nation Automobile Dealers Association also sees this happening, anticipated sales to rise several percentage points this year. While this may be a positive outlook, the 2009 has already had a bad start and many dealers are likely going to find themselves out of business. Continue reading ‘Dealers Affected By GM and Chrysler Cutbacks’