| Japanese Automakers with North American Head | | | | still all up in the air now in 2005.Honda has had good |
| Quarters are moving the ball forward and pressing on | | | | success all during the 1999-2002 auto sales boom as |
| into the future with new technologies for safety, fuel | | | | large city's streets and highways fill up to nearly |
| economy and net-centric systems. Before retiring from | | | | gridlock. People knowing of Honda reliability and some |
| the auto aftermarket franchise industry, I took a tour | | | | having been burned in the late 80's with lousy quality |
| around the nation to see what I had built and visit all | | | | would not buy an American car if you paid them. They |
| our franchisees. During this trip I visited all the all Major | | | | are extremely loyal to Honda. In my early days in |
| Japanese Auto Manufacturers North American Head | | | | business I had met the Honda Brothers when they |
| Quarters as part of our 2002 Victory Tour.We are | | | | came to the US to buy a long range Cessna 150 |
| seeing a major push by Japanese Auto Makers to | | | | Aircraft and even then they were very aggressive |
| re-gain lost ground from post 9-11 lost market share by | | | | with the latest and greatest technology. At the time I |
| domestic manufacturers due to the Zero/Zero | | | | was selling aircraft, boy has Honda come a long way |
| Financing Strategies of 2001-2002. Toyota had gained | | | | indeed. Today they maintain new prototypes in all five |
| incredible market share in late 2002 against Ford, GM | | | | categories of hybrid cars, from mixed units to pure |
| and DaimlerChrysler. Toyota started to offer a new | | | | hydrogen cell, from all electric to |
| SUV option on an old and most popular model. The | | | | thermo-hydrogen-electric, from natural gas to biofuels |
| 4-Runner now with an All-Wheel drive version for add | | | | such as bio-mass methane and ethanol. It is amazing |
| safety and performance. We had the opportunity of | | | | to the secrets they keep in house with composites, |
| going to the Dealership party held by Toyota of North | | | | finishes and propulsion. Having spent the most of any |
| American Corporate to introduce the many Dealership | | | | of the other foreign manufacturers on R and D |
| Owners this new vehicle. Also on display were the | | | | projects, Honda looks to surpass the efforts of BMW, |
| Hybrid cars and trucks, which were soon be on the | | | | DaimlerChysler and Ford in all categories of the |
| lots ready for sale. They are selling many of those | | | | newest Hydrogen Cell cars of the future. Meanwhile |
| models today in 2005 and 2006 models. Toyota's | | | | the race continues to sell as many cars possible and |
| profits were also way up due to the 2001 value of the | | | | amass as much money as possible at all costs from |
| Yen against the Dollar. The Yen was at an all time low | | | | nearly giving cars away on credit with free |
| meaning that they could build the cars much cheaper | | | | hamburgers to pay back in the future. All the |
| and re-invest much of these profits in R and D | | | | domestics are hard set on displacing the foreign |
| projects, some of hit the streets as early as May of | | | | manufacturers for good or buying them on the cheap |
| 2003 as they released the 2004 models. This will be a | | | | in the case of a total collapse of the Japanese |
| war for all manufacturers as the aggressive Japanese | | | | economy if the bad loans are realized for what they |
| Toyota company goes for the gold.Mitsubishi Motors | | | | are under the current political structure which would not |
| made quite a run in March, April and May of 2002 by | | | | only hurt auto manufacturers but also cause heads to |
| proposing a Zero/Zero/Zero plan. Zero Interest, Zero | | | | roll in banking, securities and government. In 2005 the |
| Down Payment and Zero Payments until 2003 on all | | | | foreign automakers with their environmentally clean |
| Monteros, Gallants, Montegos and Eclipses. No one | | | | cars are out pacing domestics in those categories |
| knew what the fall-out rate would be on these | | | | presently due to fuel prices. They will out run any bad |
| vehicles selling starting in March of 2003 as 90 day | | | | debts on auto loan fallout rates as the economy is |
| delinquent loans go unpaid from Mitsubishi Acceptance | | | | back and people have jobs, the unemployment rate is |
| Corporation. In hindsight the short-term strategy | | | | extremely low in the United States now.Likewise in the |
| worked but the fall-out rates were disastrous indeed. | | | | US if domestics are forced to raise prices as |
| Ford Motor Credit had also run into problems on failed | | | | consumer fail to repay loans and re-marketers sell 1-2 |
| auto loans in its major Ford Motor Acceptance | | | | year old cars on the cheap next to the over inflated |
| Corporations unit. My company was in the business of | | | | prices of new models, we may see a glut three times |
| washing car dealership lots in our Car Wash Guys | | | | as big as that of the used car dealerships, as we saw |
| Dealership Division which washed for many Mitsubishi | | | | some of this right after 9-11 and some at the time |
| Dealerships across the nation and counting them out | | | | were worried that with no possible option of using |
| now would not be a good bet as the 2003 models | | | | financing incentives to bail them out things might get |
| were stacked and the prices were very good | | | | tough, that did not happen and the industry ended up |
| compared to the increased prices of Domestic Cars | | | | saving our economy in robust sales. If this did take |
| due to import steel tax and fallout rates of bad loans. | | | | place during a period of slight inflation and fallouts in |
| Even more of a situation exists as Domestic | | | | other financial areas such as credit cards and new |
| Automakers realize that the new 2003 fallout rates | | | | homes which were purchased on 2-10% down we |
| could reach over 8% and therefore have raised prices | | | | could have seen a grouped of upside down |
| 10% to counteract this offset.Nissan had done well in | | | | consumers with nothing in the way of net worth to |
| 2000, 2001 and 2002 although had only gained | | | | make them worthy of a new car and auto prices |
| moderate ground against the other manufacturers and | | | | through the roof to cover bad debts. It would have |
| most of that came in the light truck market. Infinity did | | | | been a disaster waiting to happen, luckily the Fed |
| not do as well in 2001-2002 as expected however the | | | | Acted properly and the tax cuts kicked in fueling small |
| major consolidation in the auto dealership industry by | | | | business investment. One thing is for sure there will be |
| AutoNation, United Auto, Auto1, Sonic Automotive and | | | | so many cars on the road you will spend 1-2 hours a |
| others shielded them from being hurt too bad as they | | | | day in traffic and that means a lot of dirty cars out |
| are diversified with all brands from Hyundai to GM. This | | | | there for my company to wash? |
| was a bad year for some manufacturers such as | | | | CarWashGuys.comHow did everything get so out of |
| Daewoo, while other brands made good headway. | | | | control in 2001-2002 Auto Markets?It was not all 9-11, it |
| 2001 delivered nearly 17 million cars to Americans and | | | | was not great before that as it appeared that 2001 |
| was said to have saved our economy as those sales | | | | would end with only 14.1-15 million cars sold instead, |
| figures were thrown into the all retail sales categories | | | | they did slightly better with 15.1 million cars sold, which |
| showing consumer spending good as most retailers | | | | was still a disappointment from the 17.1 million of the |
| had a lousy Christmas in 2001. Nissan did well due to its | | | | previous year. However by the end of the Zero-Zero |
| ability to catch the consumer with flashy light trucks | | | | of 2001 the game had changed and the future risks |
| with pizzazz. Excellent marketing if you ask us at the | | | | became greater. The real question was this, would |
| Car Wash Guys, knowing of course that it was pure | | | | there an emerging middle class that was expanding or |
| brilliance.Mazda did well in early 2001 pre-9-11 due to | | | | would it be contracting? If it was expanding and that |
| the gasoline price spike, with its many fuel economy | | | | sector was increasing now from let's say the Hispanic |
| models. But did not do as well during post 9-11 as the | | | | Population, would it be expanding enough to continue |
| domestics took off like a banshee from hell with Zero | | | | this rate of expansion in the auto industry. Can our |
| Zero and lots of retained earnings to carry them. | | | | roads handle more cars? Can our bodies handle more |
| GMAC took a big bite in Mazda's sales out of the gate | | | | pollution? Are there going to be any big consolidations |
| in 2002 and Mazda is looked for it's 2004 models to | | | | in the Auto Industry. What are the plans of the |
| help it catch up in Mid 2003. Mazda also got hurt in the | | | | European Auto Companies with names like Volvo, Fiat, |
| sales to rent-a-car companies and due to its domestic | | | | Jaguar, BMW, Rolls Royce, Volkswagen, Peugeot, |
| partner and major shareholder putting it in the back | | | | Saab, Porsche, will these mergers continue with |
| seat for now. Mazda Miata's sold excellent between | | | | American Auto Makers? Will one of these be on the |
| 1999-2002 but not enough to carry the entire | | | | leading edge of new technology and leap-frog other |
| company. With a recent brand re-identification under | | | | companies with Hydrogen Cells? How many cars can |
| way they missed the boat in early 2002 meanwhile | | | | our country hold, who will buy them and most of all |
| Chrysler and Ford met GM's Zero/Zero and the horse | | | | who will pay for them? All these questions were still |
| raced out in front during a Buy American post 9-11 | | | | out in the wind and we saw a lot of cars coming off |
| craze, the rest was history. We are looked for an | | | | the Rent-A-Car lines and hitting re-sale lots. Would |
| excellent return to market position by mid to late 2003 | | | | cars with two years old dates be worth 1/3 of new |
| from Mazda and of course their domestic partner as | | | | due to inflated prices to counteract fallout loan rates |
| GM's relentless pursuit of the Zero/Zero game slowed | | | | on the Zero/Zeros? Would inflation take care of this? |
| down. GM was out in those years to wipe the | | | | Would it not? Lots of dynamics out there and we saw |
| competition and with the GMAC home division and | | | | many cards very well placed changing the game in |
| new housing starts issues if the real estate bubble | | | | 2001-2003 as we visit the best players of the greatest |
| caused walk always, these other companies may see | | | | game ever created; The Free Market, and no industry |
| things rally take off. Good call as we see home sales | | | | contains more out for blood players than the Auto |
| robust even now in Spring of 2005 and enough to | | | | Industry...God we love the game. God Bless the |
| carry the summer. Of course if interest rates hike up | | | | players, our customers and the Game. And folks that |
| and inflation occurs GM made a perfect play and | | | | is what the Auto Industry was all about in 2001-2003 |
| inflation is moving forward and so is the FED with rate | | | | and now you can see why things are the way they |
| hikes, even if money flows out of the country race | | | | are now as the Auto Dealers and Manufacturers |
| past inflows. All will be based on Iraq war, so far in | | | | move into hybrid fuel efficiency and net-centric |
| 2005 we are 187 Billion into the re-construction of | | | | electronics in the 2005-2006 models. The auto industry |
| Afghanistan and Iraq and we need those money flows | | | | is a huge important factor in the health of our |
| back. North Korean games and Iranian nuclear material | | | | economy; Think about it.Lance Winslow - Online Think |
| standoff and the consumer's over all short-term debt | | | | Tank forum board. |
| and unemployment realities came up in mid 2003. It is | | | | |