My Car Lady

New Car production cut, next hurdle in US recovery

Housing and auto sales are the two biggest industries to impact our economy and the recent announcement by Toyota, GM, Subaru, Chrysler, Nissan, Honda, Ford are the latest hurdle to putting out economy into full drive this summer selling season. Chrysler has reported they are cutting any overtime or excess production in an effort to even out parts availability for third quarter. This is on top of most of the factories in Japan being idled and their US counter-parts announcing similar steps. Ford cut two specific paint colors from the line because the titanium additive has become difficult to get from it’s supplier. Recently a US-based paint manufacturer commented to me about the trickle down effect of the Japanese disaster saying, “We (USA) gave up 90% of our manufacturing base to cheap labor abroad, and here we are stuck as a result. Dependent on another country for our survival..” Used car prices, which I had once predicted would fall as new car auto loans became easier to get, tax refunds fueled down payments and new car production increased to meet pent-up demand, are now expected to stay high through third quarter as car buyers move to pre-owned to satisfy immediate needs. However, those driver’s with late model and/or well-maintained older cars will hold on rather than pay close to MSRP prices to satisfy an emotional buying decision. Some of my clients have decided to pay down more personal debt while waiting for 2012 models to enter circulation. In any case, this will NOT upset parts for repairs. Those distribution systems are already in place in warehouses across the country. The supply-chain issues plaguing the manufacturing base are large scale orders for parts to build the cars for dealership lots, stymied by the disruption in the raw material flow. In conclusion, hang on to your keys, the automotive industry is living the phrase; “way you live in interesting times!” SLM– ——————————————————————–If you need ANY car buying, selling, trading or financing advice on any new or used vehicle, please do not hesitate to email me at sarahlee@mycarlady.com,mvides422@gmail.com,carlady@cox.net or give me a call; 702-521-7546. I’m here to help you understand the car business, address fleet management and the latest in automotive technology and advice is ALWAYS free. Sarah Lee is an automotive executive with 22+ years of experience. She writes about Cars, and is a staunch consumer advocate on car related subjects. ]]>

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