Sunday, May 01, 2011

Buyer demands for NEW auto sales is increasing and there aren't enough USA automobiles to fill in the Japanese import gap? What?

Sales of new cars and light trucks rose by 4.2 percent in Hawaii (click title to entry - thank you) during the first three months of the year, but dealers are concerned that production issues in Japan could reduce the supply of vehicles later in the year when buyer demand is strengthening here.

Local auto dealers sold 8,573 vehicles during the January-to-March quarter compared with 8,229 in the same period a year earlier, the Hawaii Automobile Dealers Association said yesterday in its Hawaii Auto Outlook report.

The first-quarter sales increase was smaller than expected and compared unfavorably with a 27.6 jump nationally in auto sales during the same period, according to the report....

This is what GM and Ford are suppose to be waiting for, a jump in car sales due to these hideous gas prices.  They aren't ready?  Why does anyone think I was screaming about limiting production of the Chevy Volt to the USA?  Hello?  NOW.  Now, is the time !!!!  I have to say these things?  I swear USA auto manufacturers are worse at market predictions than Bernanke.

...AutoNation reported net income of $69.4 million, (click here) or 46 cents per share, in the first three months of 2011, up from $55.2 million, or 32 cents per share, a year earlier. Revenue increased almost 17 percent to $3.31 billion from $2.84 billion....

See, it goes like this.  If the average American can put together a down payment on a new car that has excellant gas mileage or is electric, they can begin to see the light at the end of the tunnel in actually saving for a house.  Simple, but genius.  Americans are wonderful at finding the silver lining of every cloud.

Now, why haven't the USA auto manufacturers prepared for this event.  Granted the earthquake was a surprise.  To some.  But, this was going to happen anyway.  The boom in car sales that is.  So, where the heck are the cars!!!!!!!!!!!!

Now, what the government should be doing is offering tax incentives for car manufacturers, any manufacturer for that matter, that sees potential increases in profits coming to increase their capacity to the supply chain by employing AMERICANS and putting the nation back to work at a good wage, with benefits.

There isn't anything difficult about this, EXCEPT, having too many obstructionist Regressive Republicans or 'GOP period' standing in the way of stimulating the economy.  The USA Commerce Department should be tracking these trends in demand for goods while seeking any incentive government can provide to 're-establishing' the labor force in the USA.  The other side of this are domestic supply of goods provided by local economies.  Local economies do not have the transportation costs that would be driving up products.

Example:  A dairy farm with its own milk processing plant 'on site' and its own creamery that churns out handmade ice cream.  A dream you say?  Not so.  "Moomers" of Michigan does exactly that.  A consumer might be slightly offended by the 'barn smell' in the air (the barn is at least a quarter mile away from the commercial enterprise), but, once a taste of 'the goods' is secured all seems worth it.

Local economies are possible, they prosper and residents love it.  The Commerce Department should be assisting in every way possible.  Developing local economies are permanent.  They won't export their jobs or their profits.