Q: With the Chrysler and General Motors bankruptcies, how would you describe the state of the auto industry?
A: There’s no question this is a trying time for the auto industry. We read and hear a lot about GM and Chrysler, but this has been a tough stretch for all brands — international or domestic.
However, for consumers this period provides a great opportunity to buy a new car — that’s the silver lining. Great deals are available, and so is financing for most buyers.
Q: How is CADA assisting Colorado dealers with the national issues?
A: We’re active on multiple tracks — working to stop or at least limit the impact of the dealership closures, helping the adversely affected dealerships react to these announcements and ensuring the public is aware of the benefits and contribution of new-car dealers toward a strong local economy.
CADA staff and our member dealers have been in D.C. on a weekly basis to communicate to Congress and to highlight the direct impacts of these policies on Coloradans and the state’s economy.
What’s clear is that the economic impact is very real in Colorado. This is not just about Michigan or other manufacturing states you might traditionally associate with the auto industry.
Q: How is the government involvement in the auto industry helping or hurting local dealers and consumers?
A: We had hopes that the governmental involvement in GM and Chrysler would be beneficial but it’s hard to make the case that the intervention has helped beyond the avoidance of liquidation. The goal of keeping these two manufacturers out of bankruptcy wasn’t achieved.
And despite its new influence over the two manufacturers, the administration hasn’t questioned the ill-advised dealership closings. In fact it has encouraged it. Every taxpayer should be concerned about that.
Dealers are assets, not liabilities, to the manufacturers they represent. Dealers are profit centers, not cost centers. Dealers are responsible for more than 90 percent of the manufacturers’ revenue. In Colorado, the closures included profitable, high-volume dealerships. The federal government isn’t being a good steward of tax dollars if it doesn’t challenge the logic here.
Edited for length and clarity by Elizabeth Aguilera
