1st Qtr production up 69%

[crowe]

http://www.freep.com/article/2010011...-69-in-quarter

“The average age of vehicles in American driveways has risen from 6.7 years in 2001 to 8.1 years in 2008”

“Consumers may be scared, but they don’t like that rusting hulk in the driveway,”

“The industry expects last year’s hibernation to end, the bear will stick his nose out of the tent.”

[XDCX]

It's interesting that Toyota is among the most optimistic with their production volumes - increasing 113% over last year.

I agree that fear is the biggest reason why most car buyers are sitting on the sidelines. While economists and gov't officials keep telling us there's a recovery, I don't think the average American believes it.

[Slo]

Originally Posted by XDCX

I agree that fear is the biggest reason why most car buyers are sitting on the sidelines. While economists and gov't officials keep telling us there's a recovery, I don't think the average American believes it.

While fear is definitely a large part, many people are currently in positions where they are unable to upgrade their rides if they want to. How many people do you know that either don't have employment, are working reduced hours, have taken pay and/or benefit cuts to keep their jobs, or now have different jobs that pay less than the one they lost last year? How many people are already buried in their current loan? Lending criteria and ltv rates have changed drastically, people are no longer used to saving for a down payment before purchasing, but instead rolling taxes and back end products into the loan as well. Those days, at least for a time, seem to be over.

The average American doesn't believe that a recovery is ongoing, because they aren't seeing it in their own lives.

[XDCX]

Originally Posted by Slo

The average American doesn't believe that a recovery is ongoing, because they aren't seeing it in their own lives.

Excellent post - you nailed it.

An OEM can have a great car with fantastic advertising sold by the world's best dealers but it all means nothing if you can't get the customer bought.

It will be interesting to see what happens to the credit market for 2010.

[Ralph]

In the last few weeks, I can honestly say I've had more "ups" asking that we buy them out of a vehicle because of financial troubles than ones asking to look at a new vehicle. Until that kind of climate ends, there's trouble.