Thursday, August 28, 2008

CREDIT CRUNCH: BIG 3 DEALER CONSOLIDATION

The Wall Street Journal has an interesting story on how the Credit Crunch is squeezing car dealerships.

Tight Credit Puts Squeeze
On Big Three Auto Dealers
By JOHN D. STOLL
August 28, 2008

The credit crunch squeezing Detroit's Big Three auto makers is now spreading to some of their dealers, adding financial pressure to a group already strained by this year's big drop in auto sales.

Takeaway:

  • The Big 3 are seeking to consolidate their dealer networks
  • It will be costly to buy dealerships out
  • The credit crunch will squeeze and consolidate car dealers
  • Strategy and tactics are critical dealer survival
  • No longer is size and scale a winning combination
This is a story to track closely for the next 6 months and out to 5 years from now. There will be tremendous change.

What are your thoughts?

No comments: