As the economy tanks, there are businesses out there that are finding that they are getting more business than usual. One of these businesses in particular is the auto repair business sector. Why are they getting so much business nowadays? There are no cars being shipped off the lot and more and more people are sticking with the cars that they currently have.
Just a quick drive to a local car repair shop here in Detroit, Michigan, I was able to catch up with Mike McDonald, the owner of a family car repair shop that has been in business for over 25 years. I was able to ask him how business was going and McDonald responded, “I haven't seen this many cars come in for decades. Our sales are up nearly 25%.” He also noted that he also believes that it has something to do with the cars not leaving the lot and more and more people want to stick with the cars they have right now.
On the other side of town, I was able to meet up with a salesman at a local Toyota dealership. Toyota saw its first loss in more than 70 years in 2008. A lot of it had to do with the dwindling economy, lack of consumer spending and it had nothing to do with the car's quality. “If you take a look at the car companies today, they are all losing money, not just Toyota”, Darnell Willis stated, a salesman with Toyota. “Toyota still builds quality and will continue to do so for years to come. Cars are still leaving the lot but not as many as it used to be. Give it time and it will come back to where it was”.
Sure, Toyota is still producing quality. Mike McDonald also noted that many of the cars that come into his shop are American owned. He also noted that the American auto makers need to really reconsider how they manufacture their cars and look into the future when it comes to Hybrids and the environment. Many Americans today think that the American auto makers like GM and Chrysler aren't on the right path.
With consumer confidence at its all time low, many Americans are looking for more ways to save, including not buying new cars which is hurting the ailing auto industry. Some experts believe that once the stimulus bill takes effect and some Americans start seeing tax returns and more in their paycheck, they may turn to buying newer cars once again.
Tom Tessin writes about the automotive industry, news, and all the latest happenings on his blog at www.findgascards.com
Comment and add to the story without registration, but keep the comments meaningful please. Links are not accepted.
