Auto Marketplace Corrected

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Auto Marketplace A couple of years ago, who would have thought that General Motors, and Chrysler would be on the brink of bankruptcy? GM’s stock was trading in the low 30’s and still at a multi- year low. Today you can buy a share of GM for less than the cost of a Big Mac. Chrysler is in even worse shape and very well could be the first of the big 3 to fail. A complete meltdown of the automotive industry has never happened before- only a partial occurrence happened decades ago when the government bailed on Chrysler. Look what’s happening in Japan and Korea and German automotive industry. Sales reported at a 40% drop in volume. With GM and Chrysler going back to the well for more and more loans from the U.S. government, their fate is completely unknown. With sales down 40 to 50 percent across the board with the big 3 and even with Toyota down 30%, the impact of American consumer not buying automobiles has significant implications for the entire US economy. The assembly line is the mechanism that modernized American and Japan’s automobile manufacturing. Today, there is an assembly line of assorted businesses and people who rely solely on the sales of cars for their entire existence. Without the US, German, United Kingdom, Japan & Korea car manufacturers driving new cars off the line, there will be a cascading effect across the world. Watch out for China, they are planning a upset in the auto-industry. First, some US, Japanese, German, French and English parts manufacturers will be out of business and so will their employees be out of jobs.. Steel, tire, and glass, electronics are examples of other manufacturer based companies that will be hit by the shuttering of the OEM’s. Services oriented business like insurance, repair, construction companies and even local media outlets will also be affected. One of the biggest businesses affecting local communities (besides the communities losing the auto making jobs) will be those which have car dealerships that

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Transcript of Auto Marketplace Corrected

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Auto Marketplace

A couple of years ago, who would have thought that General Motors, and Chrysler would be on the brink of bankruptcy? GM’s stock was trading in the low 30’s and still at a multi-year low. Today you can buy a share of GM for less than the cost of a Big Mac. Chrysler is in even worse shape and very well could be the first of the big 3 to fail. A complete meltdown of the automotive industry has never happened before- only a partial occurrence happened decades ago when the government bailed on Chrysler. Look what’s happening in Japan and Korea and German automotive industry. Sales reported at a 40% drop in volume.With GM and Chrysler going back to the well for more and more loans from the U.S. government, their fate is completely unknown. With sales down 40 to 50 percent across the board with the big 3 and even with Toyota down 30%, the impact of American consumer not buying automobiles has significant implications for the entire US economy.

The assembly line is the mechanism that modernized American and Japan’s automobile manufacturing. Today, there is an assembly line of assorted businesses and people who rely solely on the sales of cars for their entire existence. Without the US, German, United Kingdom, Japan & Korea car manufacturers driving new cars off the line, there will be a cascading effect across the world. Watch out for China, they are planning a upset in the auto-industry.

First, some US, Japanese, German, French and English parts manufacturers will be out of business and so will their employees be out of jobs.. Steel, tire, and glass, electronics are examples of other manufacturer based companies that will be hit by the shuttering of the OEM’s. Services oriented business like insurance, repair, construction companies and even local media outlets will also be affected. One of the biggest businesses affecting local communities (besides the communities losing the auto making jobs) will be those which have car dealerships that go out of business. Dealerships in the G20 countries own big parcels of land, employ a good number of people, represent the largest local (US) advertising dollars and have historically had a large community presence.

News from the EUROPEAN AUTOMOBILE MANUFACTURES ASSOCIATION Provides the following facts: Germany also has a special relationship with the motor car. Considered by many as the birthplace of the automobile – in 1901 it was already producing 900 vehicles a year - German engineers such as Karl Benz, Gottlieb Daimler and Wilhelm Maybach were pathfinders in the technical development of the internal combustion engine. Germany’s famous premium brands of today are coveted around the world. The names of companies such as Porsche, Audi, Mercedes and BMW, as well as the mass market producer, Volkswagen, are synonymous with style and quality. International marques, including Opel (GM) and Ford, are also an important feature on the automotive landscape.

In recent years, the German auto industry has managed to keep its head above water at a time when other industrial sectors were struggling and the domestic economy was flat.

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Over the past decade, the industry has doubled its revenues and raised its share of manufacturing output from 12 per cent to 19 per cent.

The industry consists of a small number of global lead manufacturers supported by a large number of family-owned small and medium-sized suppliers (2,500 enterprises in all). It generates a turnover of €226bn and an export surplus of €80bn. Since reunification, auto manufacturing has become a crucial pillar of the East German economy with seven production centres and over 700 local suppliers

Automobile manufacturing not only makes enormous contributions to employment and the national gross domestic product, it also performs an invaluable role in technological innovation and human resources development. The industry’s R&D expenditure, €15.6bn in 2004, accounts for more than a third of all Germany’s research spending. Over 85,000 people work in automotive R&D, which amounts to one job in nine in this sector. As reported in WSJ, BERLIN,” ADAM OPEL AG COULD BE TAKEN UNER GOVERNMENT SUPPORTED TRUSTEESHIP”, if GM enters bankruptcy before opel can be sold. The man to watch is Karl-Theodar zu Guttenberg. If the money for a credit loan does not come up, he could take it over...

Its value is best assessed in Baden-Württemberg, home to the most important clusters of automotive manufacturers and suppliers, whose competitiveness is driven by a very strong local R&D infrastructure. Automotive and engine manufacturers in this area account for sales of €38bn in 67 factories. The region’s automotive companies have a long tradition of technological innovation whose achievements include airbag technology, cruise control, fuel injection systems and anti-blockage braking systems.

The region has some of the most renowned universities in Germany including Heidelberg, Tübingen and Freiburg, and the more economically and technically-oriented Stuttgart, Karlsruhe and Mannheim universities. Not surprisingly, this higher education system is geared to meeting the needs of the auto industry. Design, development and process engineering are specialities in Esslingen and Konstanz; automotive engineering in Karlsruhe and Esslingen; business administration in the automotive industry in Nürtingen; and automotive design at the technical college of Pforzheim.

Research spending in Baden-Württemberg is above the average of both Germany and the EU. Public and private R&D investment in the EU is 2 per cent of GDP and 2.5 per cent in Germany as a whole. But in Baden-Württemberg, total R&D outlays amount to 3.7 per cent, thanks to a very strong performance by the private sector, led by the auto industry. The fruits of this effort are measured in domestic patent applications – which are nearly double the German average at 112 per 100,000 inhabitants compared to the national average of 58. This comfortably establishes the region as amongst the top 10 leading innovative regions in the EU, according to the European Commission’s European Innovation Scoreboard.

Another German region notable for its automotive backbone is the Capital Region Berlin-Brandenburg. Considered "the automotive powerhouse at the centre of Europe", the

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region accommodates more than 150 companies in the sector with around 9,000 employees and numerous research and development institutions. Benefiting from comparatively lower labour costs, the industry has invested over €10bn in this area since reunification, and almost 50 per cent of the top 100 worldwide suppliers are located there.

Vibrant supplier sector

Germany’s supplier industry is as dynamic as it is diverse. Among its biggest suppliers are ThyssenKrupp Technologies, with operations in 240 locations worldwide, 3M Deutschland, which produces over 1,000 different products for the automotive industry, and Michelin Reifenwerke, which has been present in Germany for over a century. There is a high concentration of component suppliers in supporting sectors such as electronics and electrical engineering, information technology, plastics and glass production, metal manufacture and processing, optics and precision mechanics. Given the priority German car designers attach to incorporating high-performance features in their cars, much emphasis is directed towards advanced electronics, innovative measuring tools, just-in-time logistics, turbo-charging systems, light-weight / high-strength engineering materials, catalytic converters, "smart" engineering and intensive robotic assembly, as well as dedicated software development.

Financial services

The strength of manufacturing is matched by a robust financial services business. Today, three out of four new cars are either leased or financed via lending. Manufacturer-owned banks and leasing companies are the main players, holding a 60 per cent share of the market.

United Kingdom

Diverse, competitive and world class

The size and importance to the national economy of the UK’s automotive industry is an impressive example of survival and growth despite the demise over the last 40 years of large-scale national manufacturers. Automotive firms are leaders in many areas of manufacturing in the UK, while the country is home to the world's most successful motor sport industry and a number of leading independent automotive design firms.

Despite the upheavals in recent years, the automotive sector in the UK remains diverse, competitive and world-class. Its crucial importance to the economy is reflected in a manufacturing turnover of over £47 billion (euro 67.4 billion), total direct and indirect employment of 850,000 and a 10% share of national exports. Britain’s world-leading design-engineering companies are highly skilled and technologically sophisticated businesses whose products have a truly international penetration. It is estimated that

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British firms have a 20 per cent share of the independent global market in vehicle design-engineering.

The range of principal actors in the UK industry is wide and varied. In addition to some of the leaders of world motor sport, they include global volume manufacturers, specialist vehicle makers, component suppliers and design-engineering businesses. Many are examples of excellence in their fields: the Nissan factory in Sunderland and Toyota’s Burnaston facility lead European productivity leagues for car manufacturing; Leyland’s factory in Lancashire supplies 25% of the domestic truck market; component suppliers are in the front rank for technological development.

In recent years, the UK has enjoyed good growth in output of automotive and non-automotive engines. Additional investment by Ford will push up production to over 3.5 million light vehicle engines and up to 400,000 truck and non-automotive engines by the end of the decade.

The core manufacturing, distribution and servicing business in the UK directly generates a turnover value of £200 billion (euro 287.16). In 2006, UK-based manufacturers produced 1.44 million cars, 53% of them carrying Nissan, Honda and Toyota badges. Output is sustained by a significant domestic market for new cars with annual registrations averaging 2.38 million over the last ten years. The equivalent average for vans, trucks, buses and coaches was 331,700. Underpinning these markets is a highly sophisticated, fiercely competitive retail and service/maintenance sector, employing more than 550,000 people and generating added value of some £22 billion (euro 31.5) annually.

SWEDEN

Sweden is among the countries in the world that are most highly dependent on the motor vehicle industry. Despite a population of only 9 million, Sweden hosts two important carmakers in Volvo Cars and Saab Automobile and two of the world’s leading heavy truck and bus manufacturers – Volvo Group and Scania. In 2006, these two firms accounted for one fifth of the heavy trucks over 16 tons produced in the world.

Consequently, the motor vehicle industry is vital to employment, exports, investments, research and development, and the dissemination of knowledge in the country. It employs approx. 140 000 persons and accounts for exports valued at SEK157bn (EUR 17bn) in 2006, which represents 14,5 percent of Sweden’s total exports of goods and makes it the largest Swedish export industry. Moreover, one fifth of the machinery and inventories investments and a quarter of the R&D investments of the whole of Swedish manufacturing industry come from the automotive sector.

Spin-offs from the technology-intensive motor vehicle industry also benefit other industries in terms of employment, advanced technical development and transfer of knowledge. This is of major importance to the IT sector, for instance. Moreover, the motor vehicle industry produces indirect employment in other industries, such as the

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commerce and services sectors. It is estimated that one tenth of all people employed in Sweden are working in road transport related areas. If anything, dependence on the automotive industry as a source of jobs has increased in recent decades as other industries have cut back their operation, closed or relocated. The Volvo Group remains the largest private employer of the country.

The industry is highly export-oriented. Of the total car production by Volvo Cars and Saab Automobile, 85% is sold outside Sweden and more than 95% of the heavy vehicles produced by the Volvo Group and Scania are sold on export markets. But the domestic market remains the second most important market for Volvo and the third for Saab.

Important for Spain and also important for Europe

Spain’s vibrant automobile industry is very much a post-war phenomenon. The first car plant was built in 1950 and by the early 1970s a wave of investment by the major US and European companies had established the industry as the country's second most important in the manufacturing sector. It now accounts for 7% of all industrial employment, 5% of gross domestic product and 26% of the nation’s exports. Key markets are France, Germany, Italy and Great Britain.

Its size and importance is underlined by its significance at the European level. Passenger car production in Spain ranks number 3 in the Union but the country occupies the top position as a producer of industrial vehicles. In 2006 passenger vehicle production reached 2.77 million vehicles while output of industrial vehicles was 570,000 units. More than 80% of its production in this category is exported to other EU Member States.

The industry is located in several parts of the country: SEAT began its operations in Barcelona, while General Motors Espana is located in the Zaragoza and Cadiz areas, Ford Espana is near Valencia, and a number of companies are placed around Madrid. Productivity performance at many of these plants is very competitive and two of Spain’s best are in the European top ten.

R&D activity is not high in the Spanish automotive industry, largely because most manufacturing activity is owned by multinational groups that carry out R&D activities elsewhere. The parts and components industry presents a different picture. Major operators include several Spanish owned companies with growing R&D activities. Turnover in the sector was €31 billion in 2006.

Another important, forward-looking producer

Portugal is a significant automobile producer, a little known fact but one which is supported by an annual production of all types of motor vehicles of 227,325 units in 2006. Output at this level explains why the automotive industry is Portugal’s biggest exporter and accounts for 7% of the country’s gross domestic product.

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It also helps to explain the industry’s very respectable turnover of more than €4 billion per year and employment of more than 40,000 workers in about 180 companies. Production of passenger cars in 2006 was 143,478, of light trucks 78,472 and of heavy trucks 5,248. These products emerged from five assembly plants (VW, Mitsubishi Trucks, Opel, Toyota Motor Europe and PSA Peugeot Citroen).

Leading global component suppliers are well represented in Portugal including Visteon, Delphi Automotive systems, Robert Bosch, Faurecia, Lear and Johnson Controls. Most of them are clustered around Oporto and between Braga and Setubal.

The sector is forward looking and benefits from several important ongoing R&D initiatives and support programmes. The Centre for Excellence and Innovation in the auto industry (CEIIA) was created to support the development of technical know-how and strategic competencies of companies active in the sector, identifying potential business, technological and financial synergies amongst industry players. The INAUTO initiative, a specific program within CEIA, was created to promote cohesive practices and measures between public policy and the industry. Under the INAUTO program, over €7 million is being invested in developing the technological, research and organization capabilities for a state-of-the-art automotive cluster in Portugal.

There are few countries in Europe – or, indeed, the world – where the motor car is such a strong expression of national and individual identity as in Italy. The nation’s obsession with the racing fortunes of Ferrari in Formula One reflects its collective love of speed, excitement and beauty. The look of a car matters much to most Italians which is why the country has long been the source of the world’s leading car designers. But during the past century, Italy has also excelled in engineering skills able to develop highly successful low-cost small cars such as the Fiat 500 alongside premium models like Ferrari and Maserati. In the last 30 years these celebrated marques, together with Lancia and Alfa Romeo have been acquired by FIAT, the nation’s oldest mass producer of automobiles which now accounts for around 90% of Italian car production.

The automotive sector in Italy contributes a significant 8.5% to Italian GDP – nearly one quarter of the contribution from all manufacturing industries. The sector’s total turnover is more than €54bn with a directly-employed labour force of around 200,000 people.

After a steep decline between 2001 and 2005, domestic car production is beginning to recover. Helped by the launch of new models, growth was 16.7% in 2006 over 2005 and total car production reached 1,211 million units. Light Commercial Vehicle (less than 3.5 tons GVW), production was slightly up at 272,205 units (+0.9%) while heavy truck manufacturing was 44,020 units (+11.1%).

Demand for new cars in 2006 was relatively strong at 2,325 million units (+3.9%) The LCV market was up 8.3% on 2005 while sales of heavy trucks were 35,751 units, more or less in line with the previous year.

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Out of total production worth €24bn in 2004 (+7% on 2003), exports accounted for €13bn, 54% of the total. Italian companies’ primary markets are in Europe (which absorbs 75% of exports), but they are building increasingly strong positions in the Americas (12% of exports), and Asia (8%).

Distinction in design

Since Turin is the centre of car manufacturing in Italy, it is not surprising that the top 10 design firms are located in and around the city. The largest and possibly best known, Pininfarina, employs more than 2,000 people since it also produces cars (around 80,000 per year) as well as designs them. Other celebrated names upon which the Italian reputation for designing sexy cars is based include Giugiari, Michelotti and Frua.

Regionally concentrated supplier networks

Italy’s leading international position owes much to the supplier networks specialising in the production of spare parts and accessories. The Turin area and the Piedmont region as a whole accommodate the nation’s most important industrial clusters. More than 470 component makers, 40% of Italy's suppliers are located there (with 33% of the workforce), with a peak of 75% for suppliers of modules and systems. As a whole, the regional supplier system employs over 43,000 people, about 70% of which is located in the province of Turin.

Ireland, Despite the absence of any automobile manufacturing and assembly industry, the automotive sector is already quite significant in the Irish economy. In recent years, the Emerald Isle has developed a technically strong automotive components industry that currently exports more than EUR 282 million a year to European car manufacturers such as General Motors, Daimler-Chrysler, Ford, Audi, BMW, and Renault. The majority of the industry’s customers are based in Germany and the UK.

Ireland's components industry is comprised of 30 enterprises, most of them operating some of the largest manufacturing plants in the country employing altogether around 7,000 people. Only four of the companies are Irish-owned and the remainder are mainly German and US multinationals. The components sector has expanded considerably during the past ten years manufacturing a range of products from low technology, labour intensive parts such as wire harnesses to high technology electronic items requiring highly skilled labour. Rising costs and growing competitive pressures have led to plant closures at the low-tech end of the industry while also encouraging other companies to move up the added value scale. Software is a significant and rapidly growing part of this strategy and, with the move towards standardisation across the sector, Ireland has the potential to claim a significant share of a global market which is estimated to be worth €133 billion by 2015.

Ireland possesses considerable assets for competing in the global economy including a highly-educated workforce, advanced manufacturing systems, a national research and development strategy and a variety of business-friendly, tax-based initiatives.

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Experts see much future growth in the auto sector as likely to come from new operations that don't actually make auto components but provide back office services. A prime example of this new genre is Ingersoll-Rand, which has set up its global sales and service office in Swords.

Finland, Small but productive

Although small, the Finnish automotive industry is remarkably productive and varied. In addition to cars and trucks, it produces trailers and military vehicles and supplies components such as tyres and glass to the OEMs and after-sales markets.

Two automotive manufacturing plants are currently operating in the country: Valmet Automotive, a contract manufacturer of passenger cars (Porsche) and Sisu-Auto, a truck manufacturer. Valmet in particular has built a reputation on its ability to bring new products to market rapidly and build several different car models at once on the same production line.

Finland went through a period of deep recession at the beginning of the 1990s, resulting in a drastic decline in automotive sales. However, by the middle of the decade, the country’s economy had made an impressive recovery and the automotive sector has gone from strength to strength.

For most Finns, a car’s most important features are durability, safety (for large cars) and price (for middle range cars). Approximately 80 per cent of new cars purchased are lower and upper middle range automobiles.

The Finnish automotive industry currently provides around 18,000 jobs in a country where total employment stands at 2.45 million. In 2004 its annual turnover was €1,076 million and attracted investments amounting to €36 million. In the same year, Finland produced 21,233 cars and 411 commercial vehicles, representing 21,644 vehicles in total.

The average Finn travels 14,600 km a year, of which 11,900 km (82 per cent) is travelled by car and 870 km (6 per cent) by bus. The share of road transport is more than double that seen in the rest of the EU. This can be partly explained by the Finnish economy’s strong reliance on transport-intensive industries, which is amplified by long distances and a sparse population. According to a logistics survey carried out in 2006, logistics costs represented on average 13 per cent of turnover (equivalent to €26.4 billion).

POLAND – Largest domestic market

A flourishing industry

Poland has a long and proud tradition of manufacturing cars, stretching back to the days when Fiat opened its first factory there in the 1930s. Low labour costs, a large domestic market and the ready availability of qualified personnel, combined with the country’s leading role in components manufacturing, make Poland one of the

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most attractive countries in Europe in the eyes of the global automotive sector.

The Polish car industry, one of the country’s first sectors to be privatised in the early 1990s, is playing an increasingly important role in the national economy: its share in GDP creation was around 4% in 2007, and it represented 11.2% of total industrial production. The country produced nearly 700,000 cars in 2007, with production rose by 33% within 9 months of 2008.

With a population of approximately 38.1 million inhabitants, total GDP surpassing € 307 billion, and a growth rate of just below 6.6% (2006 figures), Poland is both one of the largest and one of the most economically dynamic new members of the European Union. In 2007 it produced nearly 785,000 cars, trucks, and buses giving it a 1.1% share in the worldwide production of passenger cars and a 4% share in the European auto industry.

The Polish automotive industry consists of approximately 270 registered companies, the majority of which (80%) produce spare parts and accessories. Together, these companies employ about 125,000 people (2007 figures).

Dynamic exports and a growing domestic market

About 97% of the Polish car industry’s output is exported. Automotive exports are dominated by passenger cars, spare parts, components and diesel engines. The total value of automotive exports in 2007 reached an estimated € 16.6 billion, representing 16.4% of total national exports. Germany is the biggest purchaser of Polish automotive components (over 40%), followed by Italy, France, Belgium and the Czech Republic.

There are almost 13.5 million passenger cars registered in Poland. Domestic car sales amounted to around 293,000 units in 2007. This figure represented approximately 1.8% of total EU new car sales and over 24% of the new EU members’ market. Good economic growth, growing investments and construction also had a considerable impact on the truck market (over 3.5t), which rose from 15,870 units sold in 2006 to 22,600 units in 2007. 

In recent years, Poles have bought increasing numbers of better quality cars. According to analysts, there was significant annual growth in car sales, due in part to increasing prosperity and the availability of credit. In 2007 Poles run up PLN 6.4 billion for car credits (+33% than in 2006). Very good results were noted by lease companies. Value of

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leased road transport vehicles (including passenger cars) rose by 59% up to PLN 19.45 billion in 2007.

Poland’s automotive industry was one of the first sectors to be privatised in the early 1990s and has attracted more than € 4 billion of foreign investment to date. Foreign investors including cars and automotive parts producers such as Fiat, GM, Volkswagen, Toyota, Fiat-GM Powertrain, Delphi, Faurecia, Isuzu, Eaton, Lear and Volvo have flocked to Poland. Foreign investors are attracted by Poland’s strong performance in the components sector. Indeed, the country is a leading manufacturer of items such as tyres, car seats and upholstery, car electronics, electric cables, car brake’s systems. Components manufactured in Poland are installed in a wide variety of brands such as Mercedes, Nissan, Opel, Porsche, Toyota, Volkswagen, Isuzu, Fiat, Citroen, Honda, Peugeot, Volvo, BMW, Rolls-Royce, Lamborghini and Ferrari. Engines in particular are slowly becoming a “Polish specialty”.

Regional clusters

Polish manufacturing clusters, both in traditional and more high-tech branches, have a strong regional element, with spontaneous bottom-up networking. The automotive sector plays a fundamental role in regional clusters, with the biggest automotive production centers located on the outskirts of four major cities, namely Katowice, Wrocław, Poznań and Warsaw.

General Motors has invested heavily in an Opel plant in the Special Economic Zone in Katowice, while Japanese manufacturer Isuzu Motors is part of a cluster producing new generation high-pressure engines. Fiat-GM Powertrain Polska has begun production of modern turbo diesel engines, and Japanese NGK Ceramics manufactures automotive ceramic.  Significant inputs hold also VW-Poznan, Toyota Motor Manufacturing Poland and MAN Nutzfahrzeuge which run new truck factory nearby Krakow in October 2007. Cluster mapping and various studies show that there is strong potential for the development of competitive cluster structures in the country.

Also this affects the shipping business thru out the world. Expect to see some major players come under fire. Expect to see some mining interest’s to go under due to the past M & A over spending. Plan on additional 30+ million people (worldwide) to lose their jobs due to auto sales and industry slow down. The ultimate irony is that this crisis in the automobile industry makes it a great time to buy at a car and get a great deal- the irony though is fewer people have the funds & can actually get auto loans. In fact, with fewer car dealers, there will be fewer dealerships and the retail prices for cars may actually go up.

So what will happen to the iconic American Car Dealership? Will the colored flags that are draped across the lots be gone? How about the big inflatable gorilla in front of the

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dealership to gain attention? Yes, they will slowly disappear from our landscape along with jobs and important revenue streams.

It has been widely reported, in the US, that over 3000 thousand local car dealerships will go out of business in 2009-2011. What about UK? Worldwide will be in the many thousands. Normally in the US about 75 to 100 major dealers close each year. So, in 2009 there will be a 10 fold increase of the number of local car dealers who will close their doors. Car dealerships represent one-fifth of the nation’s retail purchases. 2008 sales through November are down an astonishing 36.7%. That’s a lot of money disappearing from our local & state economies. Terra Asset Management.com sells these types of properties, we turn trash into treasure.

Not only will our neighbors loose their jobs- it’s pegged that 1.1 million American work at car dealerships, but it will further strap our local and state government who rely on the sales of automobiles as a large source of tax revenue. Many analysts say they don’t see a turn-around until at least 2010.

In California, Norm Stutzke shut down his Keystone Ford dealership after 39 years in business. This is a dealership which used to sell over 3,000 cars a year. After 3 years of losses, he closed his doors and let 100 employees go. OEM’s like Ford used to have a strategy of having a dealership on every corner. Today that business model can’t survive. Bill Heard with a chain of 13 car dealerships across the country closed quietly but quickly after a 90 year history. The owners of the dealerships, who are usually sole proprietors, just can’t absorb the losses. The biggest of the big may survive and we will most likely see a good deal of consolidation going on in the local market.

So, auto dealers have to know their options. If a car dealer is struggling they can reach out to a great industry source to help them get out of the downward spiral before it gets the best of them. A local Southern California company, Terra Asset Management.com is an expert in liquidation risk and works to sell your dealership and or the land to interested parties. Operating in Palm Springs, Terra Asset Managerment.com and have unique marketing expertise and are the leading liquidation-foreclosure specialists in Southern California. Terra Asset Management.com is one of the largest brand and internet company marketer’s in the world. Terra Asset Management.com HAS ONE OF THE LARGEST BRAND INVENTORY(S) IN THE WORLD. Terra Asset Management.com can cut your time of sale down. Equally important, Terra can limit your liquidation risk and most importantly Terra has the resources and the relationships to get your property sold quickly. In a tough economy, we have to make hard choices. Fortunately, when it comes to leadership in sales, the choice is easy, Terra AssetManagement.com Action, in contrast to thought, has a way of clarifying the present and defining the future, paring your choices to a crucial few and prompting quick, clean decisions, which provides the opportunity to turn someone else’s failures to your success.

The 4 step process of Terra Asset Management.com takes the worry off your shoulders and handles all aspects of selling the property or your brands/car companies.

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Step 1: Terra takes over the property so you don’t have to be involved Plan and research all of the uses the property could be changed into.Step 2: They take the property and put in on the right path. They will handle all

repairs or other things that may keep you from selling it quickly. Contact all major players and see what help is useful.Step 3: Terra handles all of the day to day operations of the property including

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money back into your pocket.

Terra Asset Management.com is a full services real estate firm and has contractors, CPA’s, legal and other help that may be necessary for you to sell your property

If you have a dealership or manufacturing property and you need it sold, call Terra Asset Management.com Charles Stewart can be reached at (760) 866-0021 or (760) 408-8998 or [email protected].