Friday, March 25, 2011

Auto dealers rev careful engines

First came high gas prices and the housing bust. The credit crisis, rising unemployment came industry bankruptcies and massive Toyota recalls.

After a steady stream of bad news for new car dealers, it seems like there are finally up - at least for those, who made it through the downturn keeping.


This could be good news for job seekers and as traders are be forced, added staff because so many positions in the recession, according to some analysts have been eliminated.

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"The industry type return, has", said Toon van Beeck, senior analyst at IBISworld, who under which the prediction is that car dealers will have to hire new employees this year to to keep up with demand.


Others in the industry beware of these new jobs in slowly trickle could as the memory of the recent recession in many dealers heads stay fresh.


"I think many traders have learned how to get, with fewer people by", said Aaron Bragman, senior analyst at IHS global insight. "It is the same (story) we hear throughout the economy."


However, it is a glimmer of good news for an industry, flat on the back two years ago.


The National Automobile Dealers Association expects U.S. to grow new car sales 12% in 2011 to 12.9 million vehicles. This is well below peak level merchants saw years but profits would mark the second year of annual sales.


As a sales trader the same puzzles like countless other companies trying, economic recovery to negotiate faced: hire employees, too fast, and you risk hurting your bottom line. Rent too slowly and may you have not enough staff to keep growing company.


"There are some issues that can not avoid, want to when you are not caught out when the industry comes back dramatically," said Paul Taylor, an economist with the National Automobile Dealers Association.


As sales ramp up may trader concern that you could lose a sale or service job if not enough staff to calls back quickly, said Taylor.


Marc Cannon, a senior Vice President at AutoNation, one of the nation largest car dealership chains, predicts yet, that rent modest will be this year.


"We progressive growth this year compared with the previous year have, but I see no dealers..." "Fast assembly line," he said.


AutoNation an increase of 14 percent in profits last year to 226 million $, and both credited Cannon an increase of in car sales and productivity. Dealer chain lost $1.2 billion in 2008.


"I think traders have really learned how you operate in this environment," said cannon.


For those who are still in business, it is a great advantage for the downturn survived - customer turn not nearly as many competitors have, leave those who grab larger potential piece sales are still in the business.


Decreased the number of franchise dealerships that slowly shrink for years had dramatically during the recession partially due to pressure from the struggling US automaker. There were 17,698 new car dealers earlier this year, down more than 2,000 before two years according to NADA.


"Occur companies used to closed dealers is migration of existing dealers," said Taylor, the dealer trade group Economist.


How many companies struggling with the effects of the recession said Cannon car dealers who survived have eliminated or consolidated many back-office operations and increases their dependence on technology for some tasks.


He said dealers also have become much more efficient to cars by the service centers that can be a profit hub and have expanded their service hours more customers on weekends and evenings to serve.


? 2011 msnbc.com reprints

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