The results of the Presidential election this month has the automotive industry cautiously optimistic that new actions may help boost sales figures that sagged greatly the previous two months.
In fact, Barrack Obama’s new chief of staff mentioned the car industry specifically in an interview on the television program “Face the Nation,” calling it “an essential part of the economy.” Rahm Emanuel said the federal government should provide aid to the automobile industry to help the major automakers and their supplies survive the financial crisis, the New York Times reported.
The comments came after America’s largest automaker, General Motors, the week of the election stated it has been losing more than $2 billion a month and faces bankruptcy. The new President’s staff members are calling on the Bush administration to accelerate $25 billion in federal loans provided by a recent law to help automakers and suppliers retool to build more energy-efficient vehicles.
Obama’s team hopes to come up with ideas to help the industry while at the same time developing a new energy policy that will let America become less dependent on foreign oil.
Of course, gas prices are pretty much doing that anyway, as buyers are more inclined to purchase gas sippers. It remains to be seen how the federal government could boost sales of fuel-efficient cars.
Uncertainty Reduced, Helps to Sell a Used Car or Buy a New Car
All of this should be good news to those selling a used car or in the market to buy a new car or buy a used car. The end of the election has reduced “uncertainty” and should embolden consumers to open their wallets and increase spending overall, according to the Portland Oregonian.
“The uncertainty is gone,” said the chairman and chief executive for Lithia Motors in Oregon. “Especially as the fear of the economy collapsing and the inability of banks to lend goes out of people’s minds.”
It couldn’t have come soon enough for the embattled automotive industry. Cars.com already is looking ahead, planning to kick off its 2009 marketing campaign with a 60-second commercial to air during the Super Bowl on Feb. 1. It’s the second consecutive year the site for online car shoppers will advertise in the Big Game.
The campaign will feature auto shoppers confident in their new car purchase, because of preparation thanks to Cars.com.
Another area to watch if you are selling a used car, seek quick cash for used cars or buying a car is lending.Barack Obama -Search using:
The continued shoring up of the banking industry should help more Americans secure credit, the Lithia Motors executive said. That should help if you are in the market to buy a new car, and possibly even if you are selling a used car.
Then there’s federal government lending to major American automakers. Congressional Democrats want the Bush Administration to use part of the $700 billion financial industry bailout to help automakers. Under discussion is $25 billion in loans for fuel-efficient vehicles, planned to be distributed over several months.
But help to automakers will take a back seat to federal assistance for financial institutions. Again, that activity should help those selling used cars or buying new cars or even buying used cars.
Hopefully it will ultimately help General Motors, which saw its shares drop by 23 percent barely a week after the election. It’s hard to imagine General Motors declaring bankruptcy.
However there is some history involved – Chrysler was saved by a 1979 federal bailout. Only time will tell if the election results will help owners to sell a used car, buy a new car or buy a used car. At least lawmakers have acknowledged auto sales as a problem area, and something the new administration can focus on.