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2008 Bankrupt Companies - PowerPoint

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2008 Bankrupt Companies - PowerPoint Powered By Docstoc
					1
    Headlines 2008




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    Headlines 2009




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    U.S. Automotive Industry
        Economic Impact
       $576 billion in retail sales in 2008

       More than 14% of total retail sales are
        generated at new-vehicle dealerships

       18,943 new-vehicle dealerships in U.S.

       Over 1 million jobs at new-vehicle
        dealerships

                                                  4
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                  Number of Franchised
                  New-Car Dealerships
                 (Reduction from 50,000 in 1950)
    35,000
                            Recession
                             1980-82    Recession
    30,000
                                         1990-92    Recession   Recession
    25,000                                            2001        2007

    20,000

    15,000

    10,000

     5,000

        0




              09
           19 0
           1971
           19 2
           1973
           19 4
           1975
           19 6
           1977
           19 8
           1979
           1980
           19 1
           1982
           19 3
           1984
           19 5
           1986
           19 7
           1988
           19 9
           1990
           19 1
           1992
           19 3
           1994
           19 5
           1996
           19 7
           1998
           2099
           20 0
           2001
           20 2
           2003
           20 4
           2005
           20 6
        YT 2007
          D 08
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                                                                     5
4      Source: NADA Industry Analysis
13.2 Million Light Vehicles sold in 2008
 (Truck/SUV accounted for 48% of Sales)
Forecast for 2009 is 10.1-10.4 million
                        20
                                                               16.9 17.4             17.1 16.8 16.6 16.8 16.9 16.5
                                                                                                                                                    16.1
                                15.1 15.1 15.5                                                                                                                 13.2
                        15
    Millions of Units




                                                                 8.20       8.50      8.70      8.74       9.00       9.30      9.23       8.70
                                 6.57       6.86      7.40                                                                                            8.50

                        10                                                                                                                                      6.36




                        5                                        8.70       8.85
                                 8.53       8.27      8.14                            8.42      8.06                            7.67       7.80
                                                                                                           7.61       7.50                            7.60      6.79



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                                                                                     Cars        Lt. Trucks

                                                                                                                                                                       6
5                                    Source: NADA Industry Analysis
    CUV’s and Small Cars Sell Down
       during Clunker Program
Crossover Utility Vehicles     YTD 2009

               Small Cars      2008

             Luxury Cars

          Minivans, Vans

             Midsize Cars

               Large Cars

                  Pickups

       Truck-based SUVs

                         -50% -45% -40% -35% -30% -25% -20% -15% -10%   -5%   0%


               Source: Ward’s Automotive                                           7
  6
                     Sales of Hybrids
                   were 315,688 in 2008
        400,000           GM
                          Nissan
        350,000           Ford
                          Honda
        300,000
                          Toyota
        250,000
Units




        200,000

        150,000

        100,000

         50,000

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                                                                                           8
7                 Source: R.L. Polk, Ward’s Automotive
  8
                                                       Billions of dollars




                                        $0
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Source: NADA Industry Analysis
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                                                                                                Total Dealership




                                 20 3
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                                                                                            Advertising Expenditures




                                   08
            Dealership Advertising
                Expenditures
          Per New Light Vehicle Sold
              $700

              $600

              $500
    Dollars




              $400

              $300

              $200

              $100

               $0
               1981
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                  08
               19




9                    Source: NADA Industry Analysis
          Advertising
     Expenditures at New Car
       Franchised Dealers
                                                 Other 15.1%
           Other 16.6%



                                                                   Newspaper 23.2%

     Television 16.6%                       Internet 17.2%
                           Newspaper 52%


                                           Direct mail 10.2%           Radio 15.3%
          Radio 15.2%


                                                    Television 18.8%




                        1998                                    2008
                                                                                     11
10   Source: NADA Industry Analysis
                          Internet Advertising as a
                             percentage of Total
             18
                          Advertising Expenditures
             17
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Percentage




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                      9       0      1       2        3      4      5      6      7      8
                   199     200    200     200      200    200    200    200    200    200
                                                                                             12
      11          Source: NADA Industry Analysis
        National “Buy Now”
          PSA campaign
    Most extensive public advertising
     campaign in NADA history
    Extraordinary support from media
    Ads are running:
     • In nearly 350 markets
     • On 343 TV stations or cable systems
     • On 189 radio stations or groups
     • In 172 newspapers or publishing groups
                                            13
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     U.S. Auto Industry 2009
 Industry has declined to 10.1-10.4
  million units, but outlook is better for
  2010: 12 million units

 Dealer network continues to
  downsize as GM, Chrysler restructure

 “Cash for clunkers:” 700,000 vehicles
  sold
                                             14
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        Advertising Outlook,
         2009 and Beyond
 Expect advertising spending to increase with new-
  vehicle sales in 2010.

 Expect even higher rates of ad spending by 2012,
  lifted by new-vehicle sales reaching 15 million
  units for total advertising spending of well over $7
  billion.

 Larger dealerships use more TV, and industry
  consolidation will drive relatively higher TV use.

 2009 advertising spending has dropped 19.5
  percent as of mid-year (June), but ad spending
  during Clunkers period will reduce this rate of
  decline slightly.
                                                       15
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         “Cash for Clunkers”
                                            Top Sold:
                                               1. Toyota Corolla
                                               2. Honda Civic
                                               3. Toyota Camry
                                               4. Ford Focus
                                               5. Hyundai Elantra

                                            Top Traded:
                                               1. Ford Explorer 4WD
                                               2. Ford F-150 Pickup
                                               3. Jeep Grand Cherokee
                                               4. Ford Explorer 2WD
                                               5. Dodge Caravan
                                                                    16
15   Source: Department of Transportation
      Clunkers Impact in August:
     August vs. Year-to-Date Share
                       Share of U.S. New Light Vehicle Market


General Motors

        Toyota

     Ford Motor

        Honda

        Nissan                                          Aug-09
       Chrysler                                         YTD 2009

       Hyundai

   Volkswagen

                  0%          5%         10%      15%       20%    25%


             Source: Ward’s Automotive                              17
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