Automotive Industry - Will Things pick up?

**InsomnicBrain** · 11-17-2008 12:59 PM

Hi,

It seems like a lot of the automotive shops around me are slow, especially during these holiday months. I did pretty good in the month of October, btter than some of the other shops but now it seems like I might be joining them.

Different people have been telling me that things will pick up sometime in the sprinh, what are they using to predict this? I know that people will be holding on to their cars longer but is that enough to make such a prediction?

I'm very pessimistic so I don't know what to expect or how to prepare for this. I just ask myself what does spring time have anything to do with things picking up. I understand the holiday season where things might be slow. I'm very paranoid at this point and I dont know how to plan accordingly and hope some of you might help me with a better plan.

Should I cut hours, stop marketing? Do some of you have any suggestions or thoughts on this matter. I know that it may not relate to you as an automotive business but looking at it as any other business during these tough times.

Thanks...Robert

**Mega B** · 11-17-2008 01:18 PM

With the recession only just started it can only get worse and people will be looking for much smaller cars like we have in the UK for better fuel economy and cheaper services,over the last 5 years most of our every day cars have changed over to oil burners(diesels)which are cheaper to run.What you folks in the US are going to do about all that excess stock i am not sure as i can see some fantastic cut price deals coming over the next 12 months.The trouble is even if the US auto industry starts to gear up for the small car market it will take 2-3 years to arrive on the garage forecourt.

How the car market will stay buoyant over the next few years is beyond me.

**GlamGirl** · 11-17-2008 07:14 PM

I think that regardless if there is a recession or not, people are going to still need to go to work, which means they still need to have their cars running. I think if you were selling cars, it would affect you, but not if you are fixing them. A car is a necessity. People loosing jobs means exactly what you said - they will hold on to their cars, especially since gas has dropped 2 dollars a gallon. Hold in there, and don't listen to the media too much, I think the economy is going to bounce back faster than predicted. With all the pessimism out there its easy to get scared, just be careful with your budget, and yes, cut hours if you can and need to. That's part of running a successful business. Just out of curiosity, what state are you in? I am in Texas, and frankly the recession hasn't really messed with many people here at all.