What Do Car Dealers Think About What's Happening In Today's Auto Market?

Implications: With a depressed car market of "perfect storm" proportions dominating the headlines everyday, what do the people in the trenches have to say about what is happening?

Analysis: For the past several weeks, I have done informal surveys on topics of mutual interest with my auto dealer-clients, friends on the manufacturing side of the business, and some key lenders. While the results are far from scientific, they do offer some insight into the mind-set of the people who build, sell and finance the cars we buy.

Below are the results of the most recent surveys.

Most recent: When will new-car sales rebound?

Results: When gas prices drop below $4 dollars a gallon: 12.5%
When the economy improves: 27.7%
Sales won't recover this year: 34.7%
When more small cars are available: 25.1%

June 24: What should GM do to increase its stock price?

Results: Boost sales with incentives: 14.1%
Find strategic partner: 21.4%
Increase its dividend: 3.2%
Buy back shares: 13.4%
Build small car hybrids: 47.8%

June 20: Do you see a tightening/easing of credit standards?

Results: Tighter standards to for at least another 12 months: 9.6%
Tighter standards for another 6 months: 4.0%
Captives tighter, other lenders easing: 17.5%
Other lenders tighter, captives easing: 12.6%
Worst I've ever seen it, no end in sight: 56.3%



June 16: Why are Japanese small cars outselling their American counterparts?

Results: Better quality: 28.3%
Higher MPG: 21.7%
Stronger brand image: 39.2%
Greater resale value: 10.8%

June 9: What should GM do with the Hummer brand?

Results: Close it: 28.7%
Sell it: 22.1%
Make them fuel efficient: 25.3%
Reposition as low-volume luxury brand: 23.9%

June 2: How should the Detroit 3 adjust to high fuel prices?

Results: Import or build more small cars: 48.2%
Build more hybrids: 31.1%
Jack up truck incentives: 9.4%
Do nothing, fuel prices will drop: 10.3%