Called the “Consumer Assistance Recycle and Save Act of 2009″, or more commonly, “Cash for Clunkers,” the $1 billion program will provide a voucher of up to $4,500 (effectively just knocking that much off the price tag — dealers will get electronic payments from the feds) to help offset the cost of new car purchases or leases over the next five months. The cars that you’re limited to must cost no more than $45,000. So that means I can’t trade in my old 1998 Dodge Caravan (MPG rating of 18) for a 2009 Lotus Elise (MPG rating of 26) because the MSRP is too high ($47,500). However, that awesome new 208HP 2009 Mini Cooper S John Cooper Works (MSRP of $29,200) would not only get me the basic $3,500, but it’s combined cycle of 28 MPG (10 more than my current car) will get me an additional $1,000 for a total of $4,500 off the price of the car! Not a bad deal, in my humble opinion. This rebate also works with other rebates from the manufacturer or hybrid car rebates offered from the Federal Government.

So what is going to happen to all these old cars now that they are off the road? Most will have their engines taken out and destroyed (to ensure these “high polution” drivetrains stay off the road). However, miscellaneous parts like doors, bumpers and other non-drivetrain parts will still be around to make sure those cars that are running can be repairs and made roadworthy.

The House bill would go into effect within 30 days of enactment but it is not retroactive for new purchases made earlier this year. For a more complete description of all the applicable situations, see the chart below:

Passenger Car		Light-Duty Truck		Large Light-Duty Truck (6,000-8,500 lbs.)		Work Truck (8,500-15,000 lbs.)
Minimum fuel economy for new vehicle		22 mpg (EPA combined)		18 mpg (EPA combined)		15 mpg (EPA combined)		Not applicable
$3,500 voucher		Mileage improvement of at least 4 mpg.		Mileage improvement of at least 2 mpg.		Mileage improvement of at least 1 mpg or trade-in of a work truck.		Trade-in must be at least pre-2002.
$4,500 voucher		Mileage improvement of at least 10 mpg.		Mileage improvement of at least 5 mpg.		Mileage improvement of at least 2 mpg.		NA
Source: House Committee on Energy and Commerce

“We think we can redistribute any vehicles that any dealer wants us to,” spokeswoman Kathy Graham said. “Dealers are not going to be stuck with cars. We have dealerships that want the vehicles.”

Since Chrysler plants have recently stopped production due to the bankruptcy filing, dealers still want and need new cars. As of the end of last month, there were over 44,000 cars. We currently have no estimates left, but this does show a light at the end of the tunnel for dealers looking to unload their extra inventory as well as consumers who are looking for a great deal and want to buy a Chrysler car during this lull in their operations while they go through bankruptcy court.

Don't Let Your Dealer Go Up In Smoke! Protect Your Assets by Going Back to Basics!

Recent reports indicate that there could be as many as 2400 dealers closing due to the GM restructure. Chrysler themselves have said they plan to close around 789 themselves. With more than 100,000 people working for those dealerships, local communities around the country will be hurting due to the loss of employment. However, the demand for new and used cars are still there. The average person who has a car that’s getting old, got into an accident or plain just stopped working still needs to buy a car and with over 3000 dealerships around the country closing, that leaves smaller, independant dealers and big box dealers from other brands in the mix. So what are those dealers going to do to make sure they don’t fall prey to similar circumstances as GM and Chrysler dealers? Here’s a short list to make sure you’re maximizing what you do in this tough time:

1. Talent is plentiful right now. Make sure that you have the best sales staff you can get. Many of the dealers closing has a solid staff that knew what it takes to get someone into a car. Ask around and see if there are any mavericks looking to get out before the axe comes down. If you’re in a small town, perhaps hiring some of the soon-to-be laid-off staff will be a good gesture to those in your community. Ford, GM or Chrysler, we’re all in the same boat. Sometimes helping those less fortunate can be better for business than pushing out that next sale.

2. Make sure your own dealer finances are sustainable in these tough times. Cash is king, especially in a downturn like our current one. If you’re making your money selling used cars, play to that strength and make extra effort to move your used inventory. Look outside your immediate town and look to other parts of your state. A larger population is looking outside even their home states to get great deals on cars in the current economy. If parts and labor are your main source of income, make sure the local community knows that your dealer is the best place to have their cars worked on. Have an open house. Build relationships with your community. It’s hard to find someone to work on your car you can really trust. Sharing some conversation over a hot dog and soda can go a long way to consumer trust.

3. Technology is key! Why spend thousands of dollars on antiquated forms of automobile ads. Pay only for those sources that are bringing in money. EasyAutoSales knows exactly what you’re going through with some sources that charge you thousands of dollars just to be listed on their website. Being smart means only paying for what you need. Listings these days are all but free in most cases. Utilize pay-per-lead systems where available so you’re not throwing money out with no measurable results. Free and premium tools may not make you money (directly), but will save you time and allow you to spend more efforts elsewhere.

The picture at the top of this post is a rare McLaren F1 that recently caught fire and burnt up. It was later found that the car hadn’t been driven in almost 6 months. Cars, like businesses, need to be cared for every day. Even neglecting something for a few months can get your into a drastic posistion. Just like you drive your car every day, drive your business every day. There are a thousand things you can do to make your business more profitable and ensure you’re safe in these tough economic times. The above 3 are important though, albiet basic. Sometimes you need to get back to basics and streamline what you do to ensure you’ll be around.

With this said, until June 9th, EasyAutoSales is going to help out Pohanka by displaying a new car for sale that they still must get rid of every day. We’ll even Twitter about it, in hopes the right person may see the car and Ray will get some his inventory out the door! So, let’s start out with the inventory:

Pohanka Chrysler-Dodge Inventory

Remember, Pohanka needs to get rid of their new car inventory. They can still sell used cars after the 9th. So, let’s pick out a first car to feature:
Let’s be honest, the truck is a legend. With a 5.7L Hemi and some healthy design updates, this is one sharp truck and one that can haul anything you can throw at it. Not only does it look good, but sounds pretty sweet too:

So let’s visit Pohanka and see what kind of deal Ray and his team can make for you on this new Dodge Ram 1500.

Video games have become as culturally pervasive as movies. In 2007, video games generated US$9.5-billion in revenues, while movies took in US$9.6-billion at the box office. Today, players come from both genders, and all age groups and, with the introduction of Nintendo’s Wii, can involve the whole family.

But you’re asking, how is this going to sell me cars? Simply put, driving a car in virtual reality increased how much someone liked that brand of cars. Clearly test drives will excited individuals. However, you can exactly go 120MPH down the back strait of Road Atlanta in an M3 on a regular old test drive. Additionally, it’s hard to borrow a Subaru Impreza WRC to excite someone, especially when they just came to test drive a Outback or a Tribecca. This sort of brand building can only be done through simulators. However, that is apparently enough to get at least 50% of audiences (according to the study) more excited and in turn more likely to buy a car. Additionally, you’re building a relationship with someone that may be more likely to buy again down the road (perhaps even upgrading as their work positions get more important).

Beyond the lab, we see similar promotions from the likes of BMW with the release of their new M3. They had a video game specifically for driving the M3 to get you excited about the brand. Even I have been subjected to this via the Ford F-150 “Raptor” simulator at this years. NADA. I was already a huge fan of the truck, but getting behind the (virtual) wheel of a “Raptor” and running it across a desert in Baja conditions was just the icing on the “I’m Sold” cake.

Source: Financal Post

Wal-Mart, CostoCo, Sam’s and similar stores are known for their ultra efficient supply chain management. They are able to ship things more efficiently than smaller stores and thus, are able to sell them cheaper. Analysts and car makers who make ultra-cheap cars (the Chinese) will be able to utilize these amazing supply chains to market to a huge number of people (people visit Wal-Mart over 130 million times per week).

However, these big box stores will have the same problems with these cars as they do with many of their toys. Quality. In the same way Korean cars like Kia and Hyundai had very sketchy beginnings in the US, the likes of Chery and BYD will have a tough time selling to Americans who have a higher expectation of quality. Their price will no doubt fund future generations of Chinese cars that are sure to have better quality and more mainstream design.

What does this mean for dealers today? It means that a bad economy might be the least of your worries. A combination of a falling dollar (with all the “stimulus” money Washington will print out of this air) and resultant lower purchasing power of our next generation will push buyers to look for alternatives to Hondas and Toyotas. The Chinese car makers will make an absolute killing with the favorable exchange rates and domestic brands will suffer without cheaper, better built cars.

So, how will dealers “deal” with everything going against them? In this writer’s humble opinion, tax brakes are the only hope we have. Right now, the corporate tax rate in the US is the highest in the world. Makes it pretty tough to compete when you’re cars have a 35% (plus state and local taxes) premium over that of your competitors. It makes sense to most economists that killing this tax rate will allow for car companies to sell cars cheaper and hire more people to make these cars. The government will in turn make money through the income tax revenue of those employees, thus recovering the money “lost” through lowing tax income. Cheaper cars means its easier to export them to foreign nations which, again, leads to more cars sold and more revenue for the Government. So the question is this: are we going to keep killing our manufacturers and dealers by keeping the corporate tax rate high (and in turn, allowing unemployment to stay high), thus empowering China and their economy or will we lower our tax rates so our companies can compete with the rest of the world and we can take the fight overseas? The current administration and congress seem to think they can will the economy through distribution of funds into “creating” wealth. Unfortunately, the more you fight economics, the more you will suffer. And by you, I mean the American people.

Inspiration: GasGoo

There are no actual values of the amount lost by the dealers in question, but Robert Potamkin was quoted as saying, “I lost enough to be aggravated about it. Luckily, we believe in diversification.” Apparently, several listings for the Potamkin group is the family’s charitable trust fund are in the documents. In a Friday, February 6th phone call, Potamkin said that fund may have lost $1 million. But he said his personal accounts, which also lost about $1 million, could recoup most of the loss through insurance.

In this already shaky time for dealers, a poor investment can spell absolute destruction for a dealer. Keeping your online and offline presence intact is getting harder with people like Bernie Madoff running around. Hopefully, his trial (and conviction) will serve as a deterrent from others who wish to do the same in the future.

- Motown Showdown: 2009 Dodge Charger SRT8 vs. 2009 Pontiac G8 GXP
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- Clarkson: Top Gear USA ‘canned,’ viewers ‘just don’t get it.’
- Most of Saleen sold to Michigan group
- Lawrence Marshall Chevy, Dodge, Ford: Another Massive Texas Auto Dealership Closes (thanks Cody)
- Ford Leader in Technology Patents, Study Shows
- Killer car deals out there…somewhere
- Obama defends federal car plan
- How to sell diesel to Americans
- First Look: Cadillac Converj Concept
- (F1) Bourdais stays at Toro Rosso in 2009
- Black Stig Returns from the Dead
- New coalition formed to promote diesels in the U.S.
- Citroen DS Inside Concept to debut in Geneva
- General Motors to lay off 600 at Mexico plant
- Nissan GT-R With Updated Launch Control Still Fast
- New Study Confirms Car Exhaust Increases Lightning Strikes
- GAZ-51 Custom: Russians Make A Cadillac Escalade EXT Hot!
- Thai Police Erect Fake Crash Sites To Deter Drunk Driving
- Has the auto market finally bottomed out?
- Ford says new study shows SYNC leads to fewer distracted drivers
- Shelby unleashes 750-horsepower GT500 Super Snake Prudhomme Edition
- Geneva Preview: More details on Alpina B6 GT3 come to light
- Other Perspectives: Chris Bangle – The man who saved BMW?
- BMW considering five possible variants of next 1-series, turbocharging galore

Source: Sean Martin

As such, I’m starting out with a concept drawing of a Buick Lucern:

Buick has been known as a pretty stodgy brand in recent history. However, with recent effots via Tiger Woods spokesmanship (recently stopped due to cost) and designs that are more 21st century AD than 21st century BC. The above is a decent rendition of a modern “pimped out” Buick. It’s no 2010 Buick LaCross, but it’s forwards movement!

Tell me what you think about Buick in the forums: EasyRides – Buick Concept

What’s so compelling about the GMC name that keeps The General building Canyons, Sierras, Envoys, Yukons and the rest of the line? Would GM lose sales to Ford or Dodge if they killed the GMC line or is it something more? Is GMC the rugged workers brand? Is it something more? How does GMC fit into the rest of GM’s line?

I think the end question is: would GM kill a brand with their name right there in the title? I believe only if GM were at the end of their rope would they go so far as to kill a brand like GMC. Pontiac and Saturn have already been talked about being on the chopping block. Cadillac is growing and successful. Chevrolet is the largest domestic producer, so GM wouldn’t kill either of them anytime soon either. With all the brands in the GM portfolio, I would put GMC 3rd in line to be dropped. What do you think?

As long as the US Government keeps giving GM money, it’s something that they aren’t going to have to worry about. GM is going to keep doing what they have been doing because there’s no reason to change. All we can hope is that some people inside GM with foresight will begin to streamline their operations (keep the GMC models, just brand them as Chevys). Perhaps this will extend to other parts of their business, like branding and marketing. GM still has a stodgy image compared to Ford, and streamlining the manufacturing while expanding their media presence can only help their image and their business. Take some risks General! Show us what you’ve got!

Tell me what you think by discussing in the forums: GMC – Is It Brand Loyalty?