Closing Car Dealers Slash Prices to Liquidate Inventory
Due to a sharp downturn in the global economy and record low auto sales, American automakers have suffered mind blowing financial losses over the past few years. Both General Motors and Chrysler were forced to undergo government-backed Chapter 11 bankruptcy proceedings in order to stay afloat. A number of cost-cutting measures were implemented with the goal of helping the automakers return to profitability, including plant closures and layoffs. As the final component of their respective corporate restructuring plans, both companies were forced to trim a number of their franchise dealers. This move makes sense when you consider the numbers. The average dealer of the 1,100 General Motors has slated for closure sold only 38 vehicles in 2008. Chrysler has reported that more than half of their dealers that will be closed have sold less than 100 units annually. When Chrysler announced the closure of 789 of its dealerships, salesmen were told they had until June 9th to liquidate their entire inventory. Although the automaker announced plans to redistribute any remaining vehicles, no specific details were provided to the dealers. This spurred a massive sales effort at many of these dealerships. Consumers nationwide flocked to the lots in hopes of landing a good deal. Many folks reported receiving deep discounts on brand new automobiles of all types. Some stores offered brand new vehicles at up to 30-40% off the manufacturer's suggested retail price. If you're in the market to buy a new automobile, you may want to consider purchasing from one of the General Motors dealerships scheduled to close by the end of the year. GM has decided not to release a complete list of stores that will close in order to allow each dealer the freedom to go public with the news. Although there haven't been too many reports of dealerships offering amazing deals just yet, it is expected that you'll see prices being lowered as they wind down operations. For consumers concerned about warranties and purchasing from one of the troubled automakers, there are a number of things you should keep in mind. During bankruptcy proceedings, the U.S. government decided to back any existing and new warranties. Now that both GM and Chrysler have emerged from Chapter 11, they are fully capable of resuming responsibility for these warranties. The automakers have assured potential buyers that every warranty will be honored. Both companies are working around the clock to restore consumer confidence in their products and increase future sales.
E. B. Chuong writes articles about recreational vehicles, and outdoor activities. Isn't it time you give Vemar helmets a closer look? Challenge yourself, and see why Vemar helmets are your best choice for top speed riding.