| Japanese Automakers with North American Head | | | | short-term debt and unemployment realities |
| Quarters are moving the ball forward and | | | | came up in mid 2003. It is still all up in |
| pressing on into the future with new | | | | the air now in 2005.Honda has had good |
| technologies for safety, fuel economy and | | | | success all during the 1999-2002 auto sales |
| net-centric systems. Before retiring from the | | | | boom as large city's streets and highways |
| auto aftermarket franchise industry, I took a | | | | fill up to nearly gridlock. People knowing of |
| tour around the nation to see what I had | | | | Honda reliability and some having been burned |
| built and visit all our franchisees. During | | | | in the late 80's with lousy quality would not |
| this trip I visited all the all Major | | | | buy an American car if you paid them. They |
| Japanese Auto Manufacturers North American | | | | are extremely loyal to Honda. In my early |
| Head Quarters as part of our 2002 Victory | | | | days in business I had met the Honda Brothers |
| Tour.We are seeing a major push by Japanese | | | | when they came to the US to buy a long range |
| Auto Makers to re-gain lost ground from post | | | | Cessna 150 Aircraft and even then they were |
| 9-11 lost market share by domestic | | | | very aggressive with the latest and greatest |
| manufacturers due to the Zero/Zero Financing | | | | technology. At the time I was selling |
| Strategies of 2001-2002. Toyota had gained | | | | aircraft, boy has Honda come a long way |
| incredible market share in late 2002 against | | | | indeed. Today they maintain new prototypes in |
| Ford, GM and DaimlerChrysler. Toyota started | | | | all five categories of hybrid cars, from |
| to offer a new SUV option on an old and most | | | | mixed units to pure hydrogen cell, from all |
| popular model. The 4-Runner now with an | | | | electric to thermo-hydrogen-electric, from |
| All-Wheel drive version for add safety and | | | | natural gas to biofuels such as bio-mass |
| performance. We had the opportunity of going | | | | methane and ethanol. It is amazing to the |
| to the Dealership party held by Toyota of | | | | secrets they keep in house with composites, |
| North American Corporate to introduce the | | | | finishes and propulsion. Having spent the |
| many Dealership Owners this new vehicle. Also | | | | most of any of the other foreign |
| on display were the Hybrid cars and trucks, | | | | manufacturers on R and D projects, Honda |
| which were soon be on the lots ready for | | | | looks to surpass the efforts of BMW, |
| sale. They are selling many of those models | | | | DaimlerChysler and Ford in all categories of |
| today in 2005 and 2006 models. Toyota's | | | | the newest Hydrogen Cell cars of the future. |
| profits were also way up due to the 2001 | | | | Meanwhile the race continues to sell as many |
| value of the Yen against the Dollar. The Yen | | | | cars possible and amass as much money as |
| was at an all time low meaning that they | | | | possible at all costs from nearly giving cars |
| could build the cars much cheaper and | | | | away on credit with free hamburgers to pay |
| re-invest much of these profits in R and D | | | | back in the future. All the domestics are |
| projects, some of hit the streets as early as | | | | hard set on displacing the foreign |
| May of 2003 as they released the 2004 models. | | | | manufacturers for good or buying them on the |
| This will be a war for all manufacturers as | | | | cheap in the case of a total collapse of the |
| the aggressive Japanese Toyota company goes | | | | Japanese economy if the bad loans are |
| for the gold.Mitsubishi Motors made quite a | | | | realized for what they are under the current |
| run in March, April and May of 2002 by | | | | political structure which would not only hurt |
| proposing a Zero/Zero/Zero plan. Zero | | | | auto manufacturers but also cause heads to |
| Interest, Zero Down Payment and Zero Payments | | | | roll in banking, securities and government. |
| until 2003 on all Monteros, Gallants, | | | | In 2005 the foreign automakers with their |
| Montegos and Eclipses. No one knew what the | | | | environmentally clean cars are out pacing |
| fall-out rate would be on these vehicles | | | | domestics in those categories presently due |
| selling starting in March of 2003 as 90 day | | | | to fuel prices. They will out run any bad |
| delinquent loans go unpaid from Mitsubishi | | | | debts on auto loan fallout rates as the |
| Acceptance Corporation. In hindsight the | | | | economy is back and people have jobs, the |
| short-term strategy worked but the fall-out | | | | unemployment rate is extremely low in the |
| rates were disastrous indeed. Ford Motor | | | | United States now.Likewise in the US if |
| Credit had also run into problems on failed | | | | domestics are forced to raise prices as |
| auto loans in its major Ford Motor Acceptance | | | | consumer fail to repay loans and re-marketers |
| Corporations unit. My company was in the | | | | sell 1-2 year old cars on the cheap next to |
| business of washing car dealership lots in | | | | the over inflated prices of new models, we |
| our Car Wash Guys Dealership Division which | | | | may see a glut three times as big as that of |
| washed for many Mitsubishi Dealerships across | | | | the used car dealerships, as we saw some of |
| the nation and counting them out now would | | | | this right after 9-11 and some at the time |
| not be a good bet as the 2003 models were | | | | were worried that with no possible option of |
| stacked and the prices were very good | | | | using financing incentives to bail them out |
| compared to the increased prices of Domestic | | | | things might get tough, that did not happen |
| Cars due to import steel tax and fallout | | | | and the industry ended up saving our economy |
| rates of bad loans. Even more of a situation | | | | in robust sales. If this did take place |
| exists as Domestic Automakers realize that | | | | during a period of slight inflation and |
| the new 2003 fallout rates could reach over | | | | fallouts in other financial areas such as |
| 8% and therefore have raised prices 10% to | | | | credit cards and new homes which were |
| counteract this offset.Nissan had done well | | | | purchased on 2-10% down we could have seen a |
| in 2000, 2001 and 2002 although had only | | | | grouped of upside down consumers with nothing |
| gained moderate ground against the other | | | | in the way of net worth to make them worthy |
| manufacturers and most of that came in the | | | | of a new car and auto prices through the roof |
| light truck market. Infinity did not do as | | | | to cover bad debts. It would have been a |
| well in 2001-2002 as expected however the | | | | disaster waiting to happen, luckily the Fed |
| major consolidation in the auto dealership | | | | Acted properly and the tax cuts kicked in |
| industry by AutoNation, United Auto, Auto1, | | | | fueling small business investment. One thing |
| Sonic Automotive and others shielded them | | | | is for sure there will be so many cars on the |
| from being hurt too bad as they are | | | | road you will spend 1-2 hours a day in |
| diversified with all brands from Hyundai to | | | | traffic and that means a lot of dirty cars |
| GM. This was a bad year for some | | | | out there for my company to wash? |
| manufacturers such as Daewoo, while other | | | | CarWashGuys.comHow did everything get so out |
| brands made good headway. 2001 delivered | | | | of control in 2001-2002 Auto Markets?It was |
| nearly 17 million cars to Americans and was | | | | not all 9-11, it was not great before that as |
| said to have saved our economy as those sales | | | | it appeared that 2001 would end with only |
| figures were thrown into the all retail sales | | | | 14.1-15 million cars sold instead, they did |
| categories showing consumer spending good as | | | | slightly better with 15.1 million cars sold, |
| most retailers had a lousy Christmas in 2001. | | | | which was still a disappointment from the |
| Nissan did well due to its ability to catch | | | | 17.1 million of the previous year. However by |
| the consumer with flashy light trucks with | | | | the end of the Zero-Zero of 2001 the game had |
| pizzazz. Excellent marketing if you ask us at | | | | changed and the future risks became greater. |
| the Car Wash Guys, knowing of course that it | | | | The real question was this, would there an |
| was pure brilliance.Mazda did well in early | | | | emerging middle class that was expanding or |
| 2001 pre-9-11 due to the gasoline price | | | | would it be contracting? If it was expanding |
| spike, with its many fuel economy models. But | | | | and that sector was increasing now from let's |
| did not do as well during post 9-11 as the | | | | say the Hispanic Population, would it be |
| domestics took off like a banshee from hell | | | | expanding enough to continue this rate of |
| with Zero/Zero and lots of retained earnings | | | | expansion in the auto industry. Can our roads |
| to carry them. GMAC took a big bite in | | | | handle more cars? Can our bodies handle more |
| Mazda's sales out of the gate in 2002 and | | | | pollution? Are there going to be any big |
| Mazda is looked for it's 2004 models to help | | | | consolidations in the Auto Industry. What are |
| it catch up in Mid 2003. Mazda also got hurt | | | | the plans of the European Auto Companies with |
| in the sales to rent-a-car companies and due | | | | names like Volvo, Fiat, Jaguar, BMW, Rolls |
| to its domestic partner and major shareholder | | | | Royce, Volkswagen, Peugeot, Saab, Porsche, |
| putting it in the back seat for now. Mazda | | | | will these mergers continue with American |
| Miata's sold excellent between 1999-2002 but | | | | Auto Makers? Will one of these be on the |
| not enough to carry the entire company. With | | | | leading edge of new technology and leap-frog |
| a recent brand re-identification under way | | | | other companies with Hydrogen Cells? How many |
| they missed the boat in early 2002 meanwhile | | | | cars can our country hold, who will buy them |
| Chrysler and Ford met GM's Zero/Zero and the | | | | and most of all who will pay for them? All |
| horse raced out in front during a Buy | | | | these questions were still out in the wind |
| American post 9-11 craze, the rest was | | | | and we saw a lot of cars coming off the |
| history. We are looked for an excellent | | | | Rent-A-Car lines and hitting re-sale lots. |
| return to market position by mid to late 2003 | | | | Would cars with two years old dates be worth |
| from Mazda and of course their domestic | | | | 1/3 of new due to inflated prices to |
| partner as GM's relentless pursuit of the | | | | counteract fallout loan rates on the Zero |
| Zero/Zero game slowed down. GM was out in | | | | Zeros? Would inflation take care of this? |
| those years to wipe the competition and with | | | | Would it not? Lots of dynamics out there and |
| the GMAC home division and new housing starts | | | | we saw many cards very well placed changing |
| issues if the real estate bubble caused walk | | | | the game in 2001-2003 as we visit the best |
| always, these other companies may see things | | | | players of the greatest game ever created; |
| rally take off. Good call as we see home | | | | The Free Market, and no industry contains |
| sales robust even now in Spring of 2005 and | | | | more out for blood players than the Auto |
| enough to carry the summer. Of course if | | | | Industry...God we love the game. God Bless |
| interest rates hike up and inflation occurs | | | | the players, our customers and the Game. And |
| GM made a perfect play and inflation is | | | | folks that is what the Auto Industry was all |
| moving forward and so is the FED with rate | | | | about in 2001-2003 and now you can see why |
| hikes, even if money flows out of the country | | | | things are the way they are now as the Auto |
| race past inflows. All will be based on Iraq | | | | Dealers and Manufacturers move into hybrid |
| war, so far in 2005 we are 187 Billion into | | | | fuel efficiency and net-centric electronics |
| the re-construction of Afghanistan and Iraq | | | | in the 2005-2006 models. The auto industry is |
| and we need those money flows back. North | | | | a huge important factor in the health of our |
| Korean games and Iranian nuclear material | | | | economy; Think about it.Lance Winslow - |
| standoff and the consumer's over all | | | | Online Think Tank forum board. |