WDET News
- Financial Crisis Hurting Auto Dealerships
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Oct 7, 2008Automotive & Business - Link to Audio
The head of the National Auto Dealers Association says hundreds of auto dealers will likely go out of business this year. Detroit Public Radio’s Jerome Vaughn has more.
SOQ
Auto Dealers Chair Annette Sykora says the nation’s financial crisis will push as many as 700 vehicle retailers to close their doors. That’s compared to about 430 dealerships shutting down last year.
During remarks in Detroit, Sykora said tightening credit markets are making it harder for consumers to get auto loans. That, in turn, is hurting auto dealers.
She says about 94 percent of vehicle buyers finance their purchases.
The financial crisis is also making it harder for retailers to get credit for their vehicle inventories.
Sykora says speedy implementation of the federal government’s financial rescue plan would boost consumer confidence and help the nation’s auto industry.
In recent months, Detroit’s automakers have pushed to eliminate weaker auto dealerships around the country as overall sales have dwindled.