SAA Automotive Outlooks Conferences tackles the credit crunch and housing crisis

PHOTO BY JASON RZUCIDLO / ©AMERICAJR.com

The SAA Automotive Outlook Conference took place inside the Detroit Marriott Renaissance Center.

by Garrett Godwin ggodwin82@yahoo.com

DETROIT -- Like the recent winter storm when it comes to traffic, The Society of Automotive Analysis is "Navigating Turbulent Times" involving the rising problems within the automotive industry and the financial crisis that has been plaguing the Motor City. The mission of the SAA is "... to be the leading organization providing access to candid opinions of the global automotive industry." This is their 21st annual Automotive Outlook Conference, which took place last Tuesday morning inside the Detroit Marriott Renaissance Center.

Keynote speakers of the SAA include Emily Kolinski Morris of Ford Motor Company and Paul Taylor of the National Automobile Dealers Association, whose main points involve the industry outlook into this year, the credit crunch, and the housing/mortgage crisis. Taylor stated in his economic report that Michigan is ranked 46th as one of the previous 22 states with continued Real '09 Estate Correction expected as well as one of the Top 4 and 10 States for Declines in New Vehicles Sales.

When does the Credit Crunch End?

Home prices must stop falling in the 22 Problem States for car sales to improve.

According to Morris, the new Adminstration and Congress for the United States are planning to develop a two-year $700-800 billion package that is equal to 4-5% of GDP; a likely signigficant spending on infrastructure, which could include manufacturing/auto-specific instructions and may include few permanent tax cuts for households and business, and adding support to clean up bank balance sheets as well as addressing mortgage issues.

"The industry has got a real problem," states columnist Dan Neil of the Los Angeles Times, who also said that newspapers aren't doing as well as the automotive industry, which makes him sympathetic. As one of the speakers, he proposed that General Motors (GM) should be brought, then sell it back, and turn it around. Why? So, GM should become "nationalize" because it is an symbol. Still, "There is no market solution for these manufacturers," Neil comments.

Though his company Tesla Motors is going through growing pains, Elon Musk never runs out of visionary ideas, for he hasn't slowed down. The enterprenur and creator of the electric Roadster has customers that includes Hollywood superstars Leonardo DiCarpio, George Clooney, and California Governator Arnold Schwarzengger. The response to the Roadster has been excellent. That customer, he said, is so excited they called their friends and give them a test ride. Both Tesla and its chairman are in the process of building an all-electric, 5-passenger Sedan called the Model S, which is expected in 2011 with a base price of $49,000. They're also in league with Daimler-Chrysler, whom Musk considered an honor to work with and prides on being reliable.

"We love working with them; they're a fantastic company," he continues. "We believe in cooperative and strategic partnership."

 

 

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This page was last updated on Wed, January 21, 2009 9:43 PM

 

 

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