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