Obama Challenges Automakers - Edmunds.com Comments
SANTA MONICA, Calif.--(BUSINESS WIRE)--In his address, President Obama rightfully criticized Chrysler and
General Motors for missed opportunities, and now the American people can
only hope that the administration does its part to avoid similar
missteps.
“It was encouraging to hear that a scrappage program is being
considered, since the fundamental problem facing all car companies today
is a collapse in new car demand,” commented Edmunds.com
CEO Jeremy Anwyl. “Hopefully it must be implemented quickly, since an
increase in car sales will boost consumer confidence and jumpstart the
economy at large.”
The scrappage program is perhaps the most simple and clear way to
motivate consumers. As Obama noted, there is the currently possibility
of a sales tax deduction and while this is a step in the right
direction, it is confusing and not universally applicable.
“You shouldn’t have to take an accountant along when you buy a car,”
said Anwyl. “The tax deductions currently available are quite
complicated and have not had much effect.”
“As Chrysler and General Motors do what they must to rebuild, it is
critical that the government gets its hands dirty and make it clear what
is needed from the bondholders and unions, and must recognize valid
assumptions about the competitive marketplace,” remarked Anwyl.
“Currently, the administration’s attitude seems to be ‘We’ll know a
viable plan when we see it,’ and that’s not going to get anyone very
far.”
President Obama and his team are also clearly interested in having the
automakers focus on “green” cars, but that’s also easier said than done.
“The market for fuel efficient vehicles rises and falls with gas
prices,” stated Edmunds’ AutoObserver.com Editor Michelle Krebs. “Until
there is a consistent and compelling reason for consumers to buy
hybrids, such as stabilized gas prices, automakers cannot realistically
turn over their product lines to that more expensive, less profitable
product that has only achieved two percent market share after all these
years in production.”
Edmunds.com
spokespeople are available for interviews in Edmunds.com’s television
studio in its Santa Monica, Calif. headquarters and in its
Detroit-area satellite office.
About Edmunds.com Inc. (http://www.edmunds.com/help/about/index.html)
Edmunds.com Inc. publishes four Web sites that empower, engage and
educate automotive consumers, enthusiasts and insiders. Edmunds.com,
the premier online resource for automotive consumer information,
launched in 1995 as the first automotive information Web site. Its most
popular feature, the Edmunds.com True
Market Value®, is relied upon by millions of people seeking current
transaction prices for new and used vehicles. Edmunds.com was named
"Best Car Research Site" by Forbes ASAP, has been selected by consumers
as the "Most Useful Web Site" according to every J.D. Power and
Associates New Autoshopper.com Study(SM), was ranked first in the Survey
of Car-Shopping Web Sites by The Wall Street Journal and was
rated "#1" in Keynote's study of third-party automotive Web sites. Inside
Line launched in 2005 and is the most-read automotive enthusiast
Web site. CarSpace
launched in 2006 and is an automotive social networking Web site and
home to the oldest and most established automotive community. AutoObserver.com
launched in 2008 and provides insightful automotive industry commentary
and analysis. Edmunds Inc. is headquartered in Santa Monica, California,
and maintains a satellite office in suburban Detroit.
Edmunds.com Corporate Communications
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