Sunbelt States Experience Auto Sales Decline

| Posted: 04-04-2007 | Comments: 0 | Views: 13 | Rating: (50)

(?)

Experts in the auto industry say the housing bubble that is bursting in warm, enticing states such as California, Florida, Arizona and Nevada has been drowning sales for Detroit's automakers in some of their most important markets.

By far, sales of vehicles nationwide are down by 8.5 for General Motors Corp., the Ford Motor Co. and DaimlerChrysler AG. The struggling automakers in the process of coping up from the heavy losses they have experienced in the past few years.

California and Florida, once tagged as the largest auto markets in the United States, are experiencing sales doldrums. Art Spinella, the president of CNW Marketing Research in Bandon, Ore., said the two states are experiencing such weak housing markets that they are largely responsible for that decline, as well as the nation's overall 2.4 percent decline in auto sales. He added, "The housing market and especially home values are behind much of the auto industry's stumbling."

Retail vehicle sales in dealerships during the first ten weeks of the year are off 17 percent in California and 11 percent in Florida. The figures can be ascertained from the CNW data. CNW conducts consumer and automotive research for automaker, analysts and purchasers to pore over.

Aside from the aforementioned states, Michigan is also suffering from real estate woes. In the said state, there is growing inventory of unsold homes, growing worry over home prices and an increasing number of defaults in the subprime mortgage market where homes are sold at higher interest rates to consumers with riskier credit profiles. The real estate business is under predominantly intense pressure in California and other markets, where appreciation and prices have once been remarkably strong and encouraged more thrill-seeking ventures.

Officials at both GM and Ford blame the sluggish real estate market as an explanation for weak vehicle sales. Detroit automakers already were underperforming in California, where Japanese automakers like Toyota and Honda excels. But the housing slump is destroying GM, Ford and Chrysler. Additionally, the results severely damage the already critical auto market. This year in California, sales are now off 6.6 percent for GM, 18.6 percent for Ford and 19.4 percent for Chrysler. The reason behind, as experts analyze it, is the decline of real estate sales.

Consumers who are anxious about their declining home values also are shifting more toward fuel-efficient cars, when they decide to purchase them at all. Toyota and Honda, with their Earth-friendly images, are benefiting from that trend. Volvo relay might not work but Saab’s flex cars could also appear magical to auto consumers.

Mike Jackson, CEO of the Ft. Lauderdale-based AutoNation Inc., which possesses 280 new-car franchises nationwide, including 80 GM, 48 Ford and 58 Chrysler stores, said he's never seen the housing market take such a direct bite out of auto sales. "They're reluctant to make a big purchase if they don't know what their house is worth, even if they don't want to sell it," Jackson said. "They don't know how it's going to come out."

Edward E. Leamer, a professor of management, economics and statistics and the director of the Anderson Forecast at the University of California at Los Angeles, said there are many parallels between the housing and automotive markets and their current suffering. He added, “Low interest rates, set by the Federal Reserve in recent years, encouraged aggressive lending practices in both industries to entice consumers to make purchases sooner than they should have. I think it's going to be a tough year for housing and it's a tough story for autos."

Rate this Article:

Current: 0 / 5 stars - 0 vote(s).

Article Tags: Auto Parts, Volvo Relay

Article Source: http://www.articlesbase.com/automotive-articles/sunbelt-states-experience-auto-sales-decline-126336.html

Print article

Send to friend

Publish this Article

Author feedback

About the Author:

Glady Reign is a 32 year old is a consultant for an automotive firm based in Detroit, Mi. She is a native of the motor city and grew up around cars hence her expertise in the automotive field.

Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free!

Article Comments

Add new Comment

Plug-in Hybrid Technology From Odyne Corporation Presented to Fleet Managers
By: Glady Reign | 14/02/2007 | Automotive
Odyne Corporation, a leader in the development of hybrid technology for trucks and buses recently showed their technology’s advantages to fleet managers in the Southern California and New York areas. They also showcased their current lineup of hybrid vehicles.

Volvo to Compete in Indian Upscale Auto Market
By: Glady Reign | 25/05/2007 | Cars
Volvo and Ford will be expanding their presence in India. Volvo will be focusing on the higher end of the market while Ford will be targeting the midsize car market segment.

Audi Unveils Tts at Naias
By: Anthony Fontanelle | 15/01/2008 | Automotive
The performance version of Audi TT called the TTS will be unveiled by the automaker at the NAIAS. The TTS is equipped with a 2.0-liter, four-cylinder engine that produces 272 hp and a top-speed of 155 mph.

Trepidation Behind the Rise of Super-cheap Cars
By: Anthony Fontanelle | 28/01/2008 | Automotive
With the arrival of Tata Nano, the world’s cheapest car, watchers in the auto industry are worried about its repercussions. Some say the car will exacerbate India’s mass transit condition.

Audi Confirms Participation at Lms
By: Anthony Fontanelle | 02/02/2008 | Cars
Audi has confirmed that it will participate in the Le Mans Series. Said announcement is met with much gusto by Audi champion driver Allan McNish.

Ford Edge Goes Sporty at Chicago Auto Show
By: Anthony Fontanelle | 08/02/2008 | Automotive
Ford, to stress personalization, goes sporty at the Chicago Auto Show. There, the automaker will be introducing the Edge Sport, a factory-customized model.

Oresnik's Chevy Truck Passes Million-mile Mark
By: Anthony Fontanelle | 19/02/2008 | Cars
Frank Oresnik's ‘old girl’ passed the million-mile mark thanks to the Flint engine. The Chevy truck boasts of the real marvel engine.

Online Shopping Mall: Great Gift Selection, Bargain Prices!
By: Chris Robertson | 05/03/2008 | Gifts
With the holidays just around the corner, everyone is doing the seasonal scramble to find the perfect gifts. And, with the state of the economy and the housing market, consumers are on the lookout for bargains. That's why people are increasingly turning to the discount online shopping mall to stretch their gift buying dollars.

Got a Question? Ask.

Ask the community a question about this article:

Frequently Asked Questions

How many cars are manufactured in the United ...
By: Saul Garcia | 15-07-2008
how many cars are manufactured in the United States

1963 chev pickup grille
By: shefautobd | 13-07-2008
I want a replacement grille for my 1963 chev pickup, either original aluminum or chrome. The only aftermarket ones i find start at 1964b which is different. Can anyone help Elmer Shefautobd@aol.Com

Auto coral wire
By: kathy | 11-07-2008
h how do you know when coral wire is going out on your car? Dont know if i spelled it right.

Where can I sell a brand new set of A4 tires with ...
By: iyakuppur | 08-07-2008
where can I sell a brand new set of A4 tires with rims.

Exhaust pipe
By: ahcurzon | 07-07-2008
is it possible to retrofit a particle filter to a car?

Mercedes diesel designation
By: Joel | 04-07-2008
How does mercedes designate that a car is diesel vs gasoline?Will there always be a "D" following the model number, such as 240 D?

Q&A Powered by:

Latest Automotive Articles

Hydrogen for Cars - Build Your Own Hydrogen Generator Car
By: Richard Legg | 26/07/2008
If you are one of the many people who are looking to make some savings on gasoline, or are trying to find ways to increase gas mileage, then you have probably heard talk of hydrogen for cars and ways to build your own hydrogen generator car. And if you are anything like me, you probably thought that it all sounded ridiculous and a bit Sci Fi.

Picking the Best Auto School
By: Tom Tessin | 25/07/2008
If you have an ambition of making it big in the automotive industry, you have to plan yourself for success and hard work. However, if you have ambitions more than just been a lube mechanic or a tire mechanic, get education from a good automotive repair or automobile training school. A...

Water As Fuel For Your Car
By: James Gold | 25/07/2008
Recently the internet has been raving with topics about converting car to run on water as fuel supplementing the gasoline consumption. This is highly attributed to the fact of soaring oil prices and global environmental issues. It is pressing for common individuals relying on car transportation to make a living and many...

Taking a Glance at Electronic Automotives
By: Tom Tessin | 25/07/2008
Everything around has become smarter with the invention of technology, especially electronic automobiles or automotives. With the invention of electronic and digital components, life in the office and home has become much easier than it could have been. Life for auto users has become easier and comfortable due to the increase...

What is a Hypermiler?
By: Mick Legg | 24/07/2008
I came across what I thought was a new word the other day "Hypermiler." I had just come home and caught the end of some show or documentary on the TV and it kept referring to this strange word "Hypermiler." Now as I didn't know what it meant but the...

Leasing vs. Buying a New Car
By: Abe S. | 24/07/2008
Getting a new car is always an exciting time - whether the car is bought outright or leased from the dealership. Many people believe that their car, much like their home, is an extension of the person they are or indicative of the person that they may become. A car...

How to Find Good Motorcycle Boots
By: Frank Medley | 24/07/2008
Your motorcycle boots need to be able to do a variety of things. You want them to be comfortable, but also sturdy and protective. They must also have great traction and not wear out quickly. The reality is that a motorcycle boot must also be able to protect you properly...

How Gas Discount Cards Save You Money on Gas
By: Tom Tessin | 23/07/2008
At present, people have started complaining on the skyrocketing gas price and are finding difficult to pay for it. The introduction of gas discount cards acted as a boon for auto users, as they have made them to purchase auto fuel at an affordable price. Certainly, this is also a good...

More from Glady Reign

Nissan Maxima Parts Deliver Maximum Performance
By: Glady Reign | 06/12/2007 | Automotive
Bring out the best in Nissan Maxima. Equip it only with genuine Nissan Maxima Parts.

Efficient Nissan Maxima Parts Complete a Maxima
By: Glady Reign | 06/12/2007 | Automotive
Make the most of your Maxima with efficient Nissan Maxima parts.

Travel Safe and Sound When Equipped With Nissan Parts
By: Glady Reign | 06/12/2007 | Automotive
For a secure and comfortable journey, choose genuine Nissan parts for your car.

Cadillac Window Regulators
By: Glady Reign | 05/12/2007 | Automotive
Keep your windows in top shape with these Cadillac window regulators.

The Powerful Window Regulator
By: Glady Reign | 05/12/2007 | Automotive
Power up the power window system. Maximize the Window Regulator now!

Vw Parts
By: Glady Reign | 05/12/2007 | Automotive
Ensure driving performance with these VW Parts.

The Right Volvo Wheels
By: Glady Reign | 05/12/2007 | Automotive
Achieve better driving experience. Just purchase the right Volvo Wheels!

Toyota Truck Parts: Power in the Raw
By: Glady Reign | 04/12/2007 | Automotive
Attain better performance and style by using Toyota truck parts.

Article Categories

Article Marketing

Article Notepad

Stop Duplicate Content

Term Papers

Need Help?

Sign up for our email newsletter

Receive updates, enter your email below

Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2008 Free Articles by ArticlesBase.com, All rights reserved. (0.26, 16)

Sunbelt States Experience Auto Sales Decline

Article Comments

Related Articles

Got a Question? Ask.

Latest Automotive Articles

More from Glady Reign

Need Help?

Site Links

Webmasters

Business Info

Sign up for our email newsletter