GM Dealer Says Banks, Not Big Three, To Blame For Slump

by Gabe Bullard on July 10, 2009

<!– /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-parent:””; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:”Times New Roman”; mso-fareast-font-family:”Times New Roman”;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.25in 1.0in 1.25in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} –> As General Motors emerges from bankruptcy, one dealer says no amount of restructuring will help sales return to previous levels.

Sales at Tony Brown Chevrolet in Brandenburg are down about 40 percent from last year. General Manager David Bradford puts most of the blame on the fact that banks and other lenders have stopped financing vehicle purchases for buyers with poor credit.

“There’s a sub-prime market in the car business that is a lot larger than the sub-prime market of the housing industry,” he says.

Bradford says he doesn’t think GM’s new vehicles and focus on service will drive sales up unless more potential buyers can finance cars. He says one positive effect of the company leaving bankruptcy is the re-opening of manufacturing plants. Right now, Bradford says he’s running out of cars as well as customers.

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