Category Archives: Automotive News

The Real Story Behind The Auto Industry’s Resurgence

According to many recent news articles, new car sales are skyrocketing. Some sources indicate that new car sales are up 16% since 2008. Chrysler, for example, has seen a recent spike in sales over 22% from 2008. This may very well be true. However, one has to take these claims with the proverbial grain of salt. What they neglect to state is that sales during the economic downturn, which is still here in full force by the way, were quite dismal. If one uses 2008 as a benchmark, it is very easy to paint a glowing picture of a rebound. It’s akin to stating that sales have risen over 50% when counting the sale off 10 cars in 2008 as opposed to 15 in 2012. The bare naked truth is that sales are still pretty darn bad. When stats are given in percentage point increases, they sound pretty impressive. However, when actual sales figures are examined, the harsh reality of auto sales comes to light.

This is not to say that things are not getting any better for the industry. They are. Unfortunately the U.S. government intervention prevented a natural progression of an industry rising from the ashes. Government control of any private industry is not what this nation was built upon. We became the world’s most successful economy by employing principles of capitalistic free enterprise. You know the economic principles set forth by our founding fathers. If a company fails, then so be it. another will rise in its place that will have a better understanding of what it takes to succeed. We do not need the government to step in and use taxpayer money to prop up a failing enterprise. This is not the American way. Unfortunately, it is the Democrat Party way. It’s stunning to see how the Democrats paint a picture of evil corporate greedy money-grubbers bankrupting companies and selling off their assets for profit. They strip pension funds and throw thousands out of work. Well isnt’ that just what the Democrats did when they took over the auto industry. The current administration closed hundreds of dealerships throwing thousands out of work and effectively doing exactly what the Democrats accuse the other side of doing. Saul Alinsky would be proud of this maneuver Owe-blamer. One thing that this administration did not do however, is let one of its biggest supporting groups suffer. i.e. the United Auto Workers. They are still grabbing a paycheck. The poor non-union workers, of which there are thousands in the auto industry, weren’t so lucky. Their pensions were not protected and, because they weren’t in a union and therefore, couldn’t help the Democrats win re-election, were jettisoned like pieces of wreckage from a sinking ship.

This article was written by Brian McCormick of Providence, Rhode Island. Brian is a BHPH expert and has been involved in the used car and BHPH industry for over 40 years. He enjoys his family and his favorite sports team, The Boston Red Sox. He Graduated from the University of Rhode Island in 1970. Follow him on Google+