![]() "Here, before the Auto Team rejected GM's original, more gradual termination plan as an obstacle to its continued viability and then encouraged the companies to accelerate their planned dealership closures in order to take advantage of bankruptcy proceedings, Treasury (a) should have taken every reasonable step to ensure that accelerating the dealership terminations was truly necessary for the long-term viability of the companies, and (b) should have at least considered whether the benefits to the companies from the accelerated terminations outweighed the costs to the economy that would result from potentially tens of thousands of job losses," it continued. The report - which was sent by Special Inspector General Neil Barofsky to Secretary of the Treasury Timothy Geithner - suggested that the "Treasury should have taken special care given that its determinations had the potential to lead to job losses, particularly given that one goal of the loan agreements was to ‘preserve and promote jobs of American workers employed directly by the automakers and subsidiaries and in related industries.' The report from SIGTARP - titled "Factors Affecting the Decision of General Motors and Chrysler to Reduce their Dealership Networks" - criticized the Treasury for demanding the automakers put in place such rapid wind-downs and argued that the Treasury has a lot to learn from how this process was handled. Treasury's decision-making process regarding the dealership network reductions at General Motors and Chrysler has come under fire in an audit released Sunday by the Office of the Special Inspector General for the Troubled Asset Relief Program.Īnd the automakers themselves were not spared from critique, either. Of that cluster, more consumers emphasized they are in the market for a used vehicle (67 percent) rather than a new one (33 percent).Īgain, returning to what could pique the interest of finance companies, KBB found that 42 percent of used-vehicle shoppers and 20 percent of new-vehicle shoppers said they plan to pay the entire cost of their next vehicle in cash. KBB indicated 74 percent of the individuals surveyed plan to purchase a vehicle within the next six months. Additionally, KBB found these same consumers are more likely to buy a used vehicle versus a new unit.įurthermore and most relevant to auto finance companies, more than one-third of in-market vehicle shoppers involved in the survey say they plan to pay the entire cost of their next vehicle purchase in cash, and they are not influenced by incentive offers. Stemming from what analysts believe to be unsteady economic conditions, the survey determined most in-market shoppers are planning to spend a relatively small amount of money on their next vehicle purchase. The study findings showed some startling vehicle buyer sentiment about potential purchasing and financing plans. New research from the Kelley Blue Book Market Intelligence Group revealed today that more vehicle buyers are apparently turning to used units, as well as tending to pay in cash rather than financing their purchases.
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