Crisis slamsautos
1
ST. LOUIS — Joe Biden will be on the stage, too, but in many ways, tonight’s vice presidential debate will be all about Sarah Palin. Many Americans know her only as a governor of Alaska who gave a pretty good speech at the Republican National Convention and has been surrounded by controversy since. She has been praised, ridiculed, ques- tioned and sequestered. And maybe most important, she has become iconic. Tina Fey has her down on “Saturday Night Live.” Palin-style glasses are hard to get in some parts of America. But can Palin — who can gut big game — parry with Biden, a longtime Democratic senator from Delaware, when the topic goes to Wall Street fi- nance or Venezuela’s nuclear ambi- tions? Experts said the pairing sets up a challenge for both contenders — one of content for Palin and style for Biden. For viewers, the potential for great political theater is all there. Biden, who can toggle between elo- quence and verbosity in the same speech, recently ridiculed one of his own campaign ads critical of GOP presiden- tial nominee John McCain, a longtime friend in the Senate. Biden also botched history and tech- nology when he incorrectly said Frank- lin Roosevelt was president when the stock market crashed in 1929 and had FDR going on television a decade before VICE PRESIDENTIAL SHOWDOWN AT 9 TONIGHT YOUR GUIDE TO HAUNTED HOUSES IN PLAY WWW.FREEP.COM THURSDAY OCT. 2, 2008 METRO EDITION ON GUARD FOR 177 YEARS CMYK Bridge .............. 2F Business .......... 1D Classified ......... 1F Comics . Play 40-43 Corrections....... 2A Deaths ............. 4B Editorials ....... 12A Horoscope . Play 43 Lottery ............ 2A Motor City ........ 1E Movie Guide... Play 16 Puzzle Page ...... 2F Television.. Play 39 Motor City ....... 1E CLOUDY, CHILLY There’s a chance of showers in the afternoon. Chuck Gaidica’s forecast, 6B 56 42 HIGH LOW CONTACT US Delivery questions: 800-395-3300 News tip hotline: 313-222-6600 Classified: 586-977-7500; 800-926-8237 INDEX Vol. 178, Number 151 © 2008 Detroit Free Press Inc. Printed in the U.S. Wayne, Oakland & Macomb counties 75¢ Elsewhere 50¢ See the debate live on major TV networks and freep.com WHAT’S AT STAKE For Republican Sarah Palin: It could be her last big chance to con- vince voters that she is capable of run- ning the country. For Democrat Joe Biden: This is his chance to show that he is knowledgeable without being dismissive of his opponent. By CHUCK RAASCH GANNETT NEWS SERVICE Why we’ll watch LIONS, BEARS: SAME DEFENSE, BUT NOT RESULT SPORTS, 1C WASHINGTON — The U.S. Senate moved toward approv- ing a historic $700-billion rescue of lenders on Wednesday, mak- ing a few changes to help the pact gather enough momentum to survive a second pass through the U.S. House on Friday. Although the changes target- ed some of the concerns the plan’s House opponents held, it wasn’t clear whether they would be enough to secure passage. And several lawmakers in both chambers remained opposed to the idea of giving Treasury Sec- retary Henry Paulson a $700- billion shopping spree. Lawmakers on both sides ex- pected the rescue to pass the Senate. One of Michigan’s two Democratic senators support- ed the bill and the other was un- decided before the vote. “The risks to the economy are just simply too great to let this continue to free-fall,” said Sen. Carl Levin, who backs the deal. “There’s too many peo- ple’s pensions and savings and businesses that could get wiped out. “There are no guarantees this will turn it around quickly, but without this kind of a stabi- lization package the confidence will be shot. It’s already shaky, and it will be shot if Congress doesn’t act.” AT FREEP.COM: BAILOUT VOTE RESULTS U.S. auto sales cratered to their lowest level in 15 years last month as the destructive, long- reaching tentacles of the na- tion’s economic crisis reached deep into the consumer psyche, dealership showrooms and au- to-lending offices. The effect: Anxious consum- ers virtually halted spending. Once-bustling dealerships looked increasingly like ghost towns. And auto lenders with little cash at their disposal rejected thousands of loan applications from consumers who had the stomach to attempt to buy a new car or truck. In the end, the total number of vehicles sold was the lowest since February 1993. There’s little doubt among industry insiders that the prob- lem escalated in the last 10 days of the month, after Treasury Secretary Henry Paulson an- nounced on Sept. 19 that a $700-billion bailout package was necessary to save the U.S. economy. “Once they officially an- nounced the sky was going to fall, that sort of froze every- body,” said Mike Jackson, the chief executive officer of Auto- Nation Inc., which owns 317 dealerships in 15 states and is the top seller of Detroit’s brands. “Things were not good to be- gin with,” he said Wednesday after the results were an- nounced. “But the credit crisis exploded exponentially in Sep- tember. … The banks are looking for any excuse to say, ‘No.’ ” CNW Marketing Research in Bandon, Ore., which studies traffic in showrooms, said the last 10 days of September was the worst showing since CNW began keeping track in 1986. “Blowout sales aren’t work- ing,” Art Spinella, president of CNW, said in a Wednesday note that revealed his findings. CRISIS SLAMS AUTOS No carmaker spared pain in worst month since ’93 Index is based on 1986 = 100 J 2008 F M M J J A A S Index adjusted to reflect adult population changes Source: CNW Marketing Research Detroit Free Press Showroom traffic stalls By 10-day time period Beginning of January 103.62 End of September 53.57 40 60 80 100 120 Sept. 19: $700-billion Wall Street bailout sought Fewer U.S. consumers have been visiting dealerships as the economy has worsened. By SARAH A. WEBSTER FREE PRESS BUSINESS WRITER See SALES, 2A GM -15.6% Source: Autodata Corp. Detroit Free Press SEPTEMBER SALES (Compared with a year ago) FORD -34.5% TOYOTA -32.3% HONDA -24.0% NISSAN -36.8% HYUNDAI -25.4% INDUSTRY -26.6% CHRYSLER -32.8% Bailout revisions soften opposition By JUSTIN HYDE FREE PRESS WASHINGTON STAFF See BAILOUT, 8A HOUSE TO VOTE AGAIN FRIDAY Stage set for high-stakes political theater See DEBATE, 7A It’s got more juice than the Volt. It’s bigger (in a sense) than the Silverado. The Chevrolet Cruze com- pact car, which was revealed Wednesday on the eve of the Paris motor show, is expected to sell in bigger numbers than the Silverado full-size pickup and make more money — much faster — than the elec- tric-drive Volt. Designed to accelerate Chevy’s global growth, it was engineered in Korea, goes on sale in Europe next year and begins production in Ohio in 2010. ❚ MORE ON THE CRUZE, 1D ❚ TRAVERSE CROSSOVER IS CHEVY’S BEST IN DECADES. 1E FRANCOIS MORI/Associated Press CHEVY PRESENTS THE CRUZE MARK PHELAN Inside: Bailout questions answered ❚ Experts’ advice from Web chat at freep.com. 9A ❚ You asked, and we tracked down the answers. 9A ❚ Step-by-step, how this mess happened. 8A Obamas hit state Sen. Barack Obama is to visit Grand Rapids and East Lansing today while his wife, Michelle Obama, is to speak in Sagi- naw and Clin- ton Township. Details, 7A
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Transcript of Crisis slamsautos
ST. LOUIS — Joe Biden will be on thestage, too, but in many ways, tonight’svice presidential debate will be all aboutSarah Palin.
Many Americans know her only as agovernor of Alaska who gave a prettygood speech at the Republican NationalConvention and has been surrounded bycontroversy since.
She has been praised, ridiculed, ques-tioned and sequestered. And maybemost important, she has become iconic.
Tina Fey has her down on “SaturdayNight Live.” Palin-style glasses are hardto get in some parts of America.
But can Palin — who can gut biggame — parry with Biden, a longtimeDemocratic senator from Delaware,
when the topic goes to Wall Street fi-nance or Venezuela’s nuclear ambi-tions?
Experts said the pairing sets up achallenge for both contenders — one ofcontent for Palin and style for Biden. Forviewers, the potential for great politicaltheater is all there.
Biden, who can toggle between elo-quence and verbosity in the samespeech, recently ridiculed one of his owncampaign ads critical of GOP presiden-tial nominee John McCain, a longtimefriend in the Senate.
Biden also botched history and tech-nology when he incorrectly said Frank-lin Roosevelt was president when thestock market crashed in 1929 and hadFDR going on television a decade before
VICE PRESIDENTIAL SHOWDOWN AT 9 TONIGHT
YOUR GUIDE TOHAUNTED HOUSESIN PLAY
WWW.FREEP.COM THURSDAY OCT. 2, 2008 METRO EDITION
ON GUARD FOR 177 YEARS
C M Y K
Bridge ..............2FBusiness ..........1DClassified .........1FComics .Play 40-43 Corrections.......2A
Deaths.............4BEditorials .......12AHoroscope .Play 43Lottery ............2AMotor City........1E
Movie Guide...Play16Puzzle Page ......2FTelevision..Play 39 Motor City .......1E
CLOUDY, CHILLYThere’s a chance of showers
in the afternoon.Chuck Gaidica’s forecast, 6B
56 42HIGH LOW
CONTACT USDelivery questions: 800-395-3300News tip hotline: 313-222-6600Classified: 586-977-7500; 800-926-8237
INDEXVol. 178, Number 151© 2008Detroit Free Press Inc.Printed in the U.S.Wayne,
Oakland &Macomb counties
75¢Elsewhere
50¢
See the debate live onmajor TV networks
and freep.comWHAT’S AT STAKE
For Republican Sarah Palin: It could be her last big chance to con-
vince voters that she is capable of run-ning the country.
For Democrat Joe Biden: This is his chance to show that he is
knowledgeable without being dismissiveof his opponent.
By CHUCK RAASCH
GANNETT NEWS SERVICE
Why we’llwatch
LIONS, BEARS:SAME DEFENSE,BUT NOT RESULT SPORTS, 1C
WASHINGTON — The U.S.Senate moved toward approv-ing a historic $700-billion rescueof lenders on Wednesday, mak-ing a few changes to help thepact gather enough momentumto survive a second pass throughthe U.S. House on Friday.
Although the changes target-ed some of the concerns theplan’s House opponents held, itwasn’t clear whether they wouldbe enough to secure passage.And several lawmakers in bothchambers remained opposed tothe idea of giving Treasury Sec-retary Henry Paulson a $700-billion shopping spree.
Lawmakers on both sides ex-
pected the rescue to pass theSenate. One of Michigan’s twoDemocratic senators support-ed the bill and the other was un-decided before the vote.
“The risks to the economyare just simply too great to letthis continue to free-fall,” saidSen. Carl Levin, who backs thedeal. “There’s too many peo-ple’s pensions and savings andbusinesses that could get wipedout.
“There are no guaranteesthis will turn it around quickly,but without this kind of a stabi-lization package the confidencewill be shot. It’s already shaky,and it will be shot if Congressdoesn’t act.”
AT FREEP.COM: BAILOUT VOTE RESULTS
U.S. auto sales cratered totheir lowest level in 15 years lastmonth as the destructive, long-reaching tentacles of the na-tion’s economic crisis reacheddeep into the consumer psyche,dealership showrooms and au-to-lending offices.
The effect: Anxious consum-ers virtually halted spending.Once-bustling dealershipslooked increasingly like ghosttowns.
And auto lenders with littlecash at their disposal rejectedthousands of loan applicationsfrom consumers who had thestomach to attempt to buy anew car or truck.
In the end, the total numberof vehicles sold was the lowestsince February 1993.
There’s little doubt amongindustry insiders that the prob-lem escalated in the last 10 daysof the month, after TreasurySecretary Henry Paulson an-nounced on Sept. 19 that a$700-billion bailout package
was necessary to save the U.S.economy.
“Once they officially an-nounced the sky was going tofall, that sort of froze every-body,” said Mike Jackson, thechief executive officer of Auto-Nation Inc., which owns 317dealerships in 15 states and isthe top seller of Detroit’sbrands.
“Things were not good to be-gin with,” he said Wednesdayafter the results were an-nounced. “But the credit crisisexploded exponentially in Sep-tember. … The banks arelooking for any excuse to say,‘No.’ ”
CNW Marketing Researchin Bandon, Ore., which studiestraffic in showrooms, said thelast 10 days of September wasthe worst showing since CNWbegan keeping track in 1986.
“Blowout sales aren’t work-ing,” Art Spinella, president ofCNW, said in a Wednesdaynote that revealed his findings.
CRISIS SLAMS AUTOSNo carmaker spared painin worst month since ’93
Index is based on 1986 = 100
J2008
F M M J JA A SIndex adjusted to reflectadult population changes
Source: CNW Marketing Research Detroit Free Press
Showroomtraffic stalls
By 10-day time period
Beginning of January103.62
End of September53.57
40
60
80
100
120Sept. 19: $700-billionWall Street bailoutsought
Fewer U.S. consumers have been visiting dealerships as the economy has worsened.
By SARAH A. WEBSTER
FREE PRESS BUSINESS WRITER
See SALES, 2A
GM
-15.6%
Source: Autodata Corp.
Detroit Free Press
SEPTEMBERSALES(Compared witha year ago)
FORD
-34.5%
TOYOTA
-32.3%HONDA
-24.0%
NISSAN
-36.8%
HYUNDAI
-25.4%
INDUSTRY
-26.6%
CHRYSLER
-32.8%
Bailout revisionssoften opposition
By JUSTIN HYDE
FREE PRESS WASHINGTON STAFF
See BAILOUT, 8A
HOUSE TO VOTE AGAIN FRIDAY
Stage set forhigh-stakes
politicaltheater
See DEBATE, 7A
It’s got more juice than theVolt. It’s bigger (in a sense)than the Silverado.
The Chevrolet Cruze com-pact car, which was revealedWednesday on the eve of theParis motor show, is expectedto sell in bigger numbers than
the Silverado full-sizepickup and makemore money —
much faster — than the elec-tric-drive Volt.
Designed to accelerateChevy’s global growth, it wasengineered in Korea, goes onsale in Europe next year andbegins production in Ohio in2010. � MORE ON THE CRUZE, 1D� TRAVERSE CROSSOVER ISCHEVY’S BEST IN DECADES. 1E FRANCOIS MORI/Associated Press
CHEVY PRESENTS THE CRUZE MARKPHELAN
Inside:Bailoutquestionsanswered� Experts’advice fromWeb chat atfreep.com. 9A
� You asked,and we trackeddown theanswers. 9A
� Step-by-step,how this messhappened. 8A
Obamashit state
Sen. BarackObama is tovisit GrandRapids andEast Lansingtoday while hiswife, MichelleObama, is tospeak in Sagi-naw and Clin-ton Township.Details, 7A
