GM and Chrysler are urging there dealers to buy more cars even though there lots are full right now and they are having trouble moving the inventory they have. They are pushing the dealers to take these cars because they can recognize them as revenue as soon as they leave the plant, it does not matter to the manufacturer's revenue if the car actually lands up being bought by an end consumer or not. The manufacturers are pushing there dealers so hard to buy right now because they only have to march 31 to prove to the government they can be viable companies. If they fail to do this they may be forced to pay back the billions of dollars in bail out money they received late in 2008. If this happens GM and Chrysler will almost certainly be forced into bankruptcy.
so what are the auto dealers around the country suppose to do, do you risk your dealerships financial well being by bringing in additional inventory that is moving very slowly to help out the manufacturer. Or do you continue to order cars as you need them and risk the manufacturer going out of business. These are questions i pose to you readers of my blog.
Friday, January 30, 2009
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