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Big 3 Dealers See Trouble Ahead

Autoweek   05 Jul 2006 13:19 GMTPage rating:


The Autoweek reports that Ford, GM, and the Chrysler group dealers are facing trouble. Their lots are full of new cars and trucks, yet automakers continue to pressure them to order more vehicles. They are pleading for bigger rebates and low-interest loans to sell cars this summer. Floorplan costs are rising as interest rates climb. More customers are upside-down. That is, they owe more on their trade-in than it's worth.

Meanwhile, Toyota and Honda dealers want more vehicles and have no interest in a summer blowout.

Dealers also want more small cars and crossovers and fewer full-sized SUVs and pickups -- an ominous sign for the Big 3 automakers, which rely heavily on sales of big trucks.

Although the dealers crave factory incentives, most say they don't want a rerun of last summer's employee-pricing-for-all bonanza. That program severely limited their profits per unit.

Story: Autoweek


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