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It’s still hard to believe: two out of three major U.S. car companies—and American icons—going bankrupt a month apart, leaving thousands of dealers without franchise agreements, hundreds of thousands of people unemployed, and the federal government in for billions. But hopes are high for the remodeled companies, with Chrysler emerging from Chapter 11 in record time and GM aiming to follow the same route (see “Chairman’s Page.”) Meanwhile, NADA has been in high gear, helping GM, Chrysler, and other dealers. It’s successfully pushed the Small Business Administration and others to expand credit, and is now helping to move the “Cash for Clunkers” bill through Congress. Another recent accomplishment: getting GM to make its “wind-down” and “participation” agreements more dealer-friendly, including nullifying special rights for GM in contract disputes. (See “Crisis Timeline: NADA Fights for Dealer Rights.”) Looking at the economy, housing sales are beginning to show some life in different regions, and consumer confidence is rising. Vehicle sales have bottomed out and even improved month over month, with the number of Americans planning to buy a vehicle in the next two years rising to 55 percent, says an R.L. Polk study. (See “Upticks in the Economy.”) |
