Predictions for 2009
Autorevu (HALIFAX) -- If you're one of the lucky ones who hasn't been laid off yet, count yourself lucky. I knock on wood ever day I get to work. 2009 is going to be one of the bleakest moments in the auto industry. Forget the 1970's, 80's and even the dirty thirties. The deepest recession since 1930 has arrived and there will be carnage on the auto dealership network.
Already this year in the USA alone over 800 dealerships have been shut down. Automakers are so desperate to sell cars they are giving them away when you buy a high priced vehicle. Honda as announced 0.9 % lease rates and not even the big 3 automotive companies can touch that.
When car companies have to beg for money in order to stay alive, you really know the shit has hit the proverbial fan. Pickup trucks and SUV's, once the darling money maker for the auto industry, have become virtual pariahs of failure. Enter the realm of small cars and more fuel efficient hybrids. No longer are people buying land yachts and gas pigs. Fuel efficiency and build quality are becoming more important as the price of everything starts to rise.
Just today the Bank of Canada delivered a reduction of three-quarters of a percentage point to its key overnight rate on Tuesday morning, taking it down to 1.5 percent, its lowest level in 50 years. The central bank cited a deteriorating outlook for the world economy as the reason for its decision.
And speaking of deteriorating - how about that piece of shit Illinois Governor who acted more like a crime boss, demanding kickbacks and cushy positions for friends and family? "I want to make money," he declares, according to court papers. Blagojevich allegedly had a salary in mind: $250,000 to $300,000 a year. (He earns $177,412 a year.)
Talk about a steep moral decline in today's society. Check out the actual criminal complaint (pdf). It's un-fucking-believable.
Already this year in the USA alone over 800 dealerships have been shut down. Automakers are so desperate to sell cars they are giving them away when you buy a high priced vehicle. Honda as announced 0.9 % lease rates and not even the big 3 automotive companies can touch that.
When car companies have to beg for money in order to stay alive, you really know the shit has hit the proverbial fan. Pickup trucks and SUV's, once the darling money maker for the auto industry, have become virtual pariahs of failure. Enter the realm of small cars and more fuel efficient hybrids. No longer are people buying land yachts and gas pigs. Fuel efficiency and build quality are becoming more important as the price of everything starts to rise.
Just today the Bank of Canada delivered a reduction of three-quarters of a percentage point to its key overnight rate on Tuesday morning, taking it down to 1.5 percent, its lowest level in 50 years. The central bank cited a deteriorating outlook for the world economy as the reason for its decision.
And speaking of deteriorating - how about that piece of shit Illinois Governor who acted more like a crime boss, demanding kickbacks and cushy positions for friends and family? "I want to make money," he declares, according to court papers. Blagojevich allegedly had a salary in mind: $250,000 to $300,000 a year. (He earns $177,412 a year.)
Talk about a steep moral decline in today's society. Check out the actual criminal complaint (pdf). It's un-fucking-believable.
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