Well, folks, apparently it’s continuing on.  The problem we reported on earlier with Cash For Clunkers having the unintended consequence of drying up the used car market is getting worse.

Used cars in general are getting more scarce, and those that remain are going up in price despite the overall weakness of the economy.  But, in a bit of good news, this also means that your used car is worth more in trade if you’re looking to trade your car in for a newer model.

Car dealers express it best this way:

“Most of our sales, maybe 90 percent of it, is in the 5-year-old and older cars,” he said. “You ask me how many of those we didn’t sell – every one of those in a Cash for Clunkers deal, whatever that number is.”

Supply and demand comes back to haunt us all.

Tags: Cash for Clunkers, down economy, economy, used car, used car market

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With all businesses being hit hard by the down economy, a familiar tire brand is shaking off the cobwebs of the looming crisis and announced their focus for weathering the economic constraints that are making businesses crawl for survival.

In his address at The Goodyear Tire & Rubber Company’s 2009 Annual Shareholder Meeting today, Chairman and Chief Executive Officer Robert J. Keegan said he remains confident in Goodyear’s ability to drive performance during challenging economic conditions and emerge in a position of competitive strength.

“It is very clear to us that given the challenging 2009 economic environment, our intense focus on the Seven Strategic Drivers remains a solid strategic foundation,” Keegan said.

“As we address our market challenges head-on, we are not creating a new path. Rather we will be taking a proven path to the next level.”

Keegan identified three specific areas that he said will keep the company on its path toward success. These are:

• Top line – encompassing new product leadership, building core brand strength and leveraging Goodyear’s industry-leading distribution network;
• Lowering costs – aggressively aligning Goodyear’s cost structure with today’s lower industry volumes; and
• Managing for cash – focusing on the strength of Goodyear’s balance sheet and generating funds to reinvest in the business.

Keegan said his confidence is strengthened by the support of Goodyear’s dealers and their enthusiasm about the company’s global plans to launch more than 50 new products in 2009.

Among these new products is Goodyear’s Assurance Fuel Max tire, which is now available at Goodyear retailers. Assurance Fuel Max provides 27 percent less rolling resistance than the standard Assurance tire. This equates to a 4 percent improvement in highway fuel economy.

Goodyear is one of the world’s largest tire companies. It employs approximately 75,000 people and manufactures its products in more than 60 facilities in 25 countries around the world.

(Source) Press

Tags: brand strength, cobwebs, core brand, down economy, economic constraints, economic environment, goodyear, goodyear tire rubber, goodyear tire rubber company, highway fuel economy, tire brand, tire companies, weathering

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Toyota is not exempted from the declining car buying market as they found that out through figures on sales for their $64,000 Lexus LS sedan and $67,000 Lexus SC Coupe. Demand for the best-selling luxury car brand in the U.S. dropped 37 percent in the first quarter, led a 43 percent plunge in sales of the costliest car models. The company has sacrificed profit margins to stanch the decline.

Toyota had its first annual loss in six decades as the global recession decimates auto sales. Surging incentives at other luxury brands including Bayerische Motoren Werke AG, Daimler AG and Audi AG has forced the Toyota City, Japan-based carmaker to more than quadruple discounts on Lexus models in the last two years, according to Edmunds.com.

U.S. Lexus sales shrank 27 percent in Toyota’s fiscal year that ended March 31, versus a combined 23 percent drop for Toyota and Scion models. While the premium line accounts for 12 percent of Toyota’s overall U.S. volume, analysts estimate it has generated a much larger portion of profit.

(Source) Bloomberg

Tags: audi ag, bayerische motoren werke, bayerische motoren werke ag, car brand, car models, carmaker, daimler ag, down economy, edmunds, global recession, lexus ls, lexus models, lexus sc, line accounts, luxury brands, luxury car, profit margins, toyota city, toyota lexus

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