Finding the automotive angle
By Emilio Labrador
Car companies release November sales figures this afternoon, always a headline driver and sometimes a market mover. Though I suspect expectations are low for a month sandwiched in between summer incentive programs and the annual December clearance push.
Still, if your region’s economy has ties to the industry you’ll need to report on 2009’s penultimate sales month.
And by the way, those connections need not be just through factories or assembly plants but via suppliers, research, academic and industry publications, retail and wholesale parts distribution, transportation via truck or rail, marketing, consulting, design, energy — virtually every specialty serves car makers or is affected by their fates, one way or another. Not sure how to find the ones near you? Contact the state or national trade groups for prevalent industries in your turf and ask the press office to help you comb directories and journals for those with automaker ties.
Add some pizzazz by looking for local angles to product debuts, awards and other and other media events from tomorrow’s press days launch at the Los Angeles auto show. Ford Motor Co. plans to unveil its sporty new U.S. version of the Fiesta compact, while Mazda and Chevy also show off new models. Fritz Henderson, CEO of troubled General Motors Corp., will doubtless make news with his keynote speech Wednesday morning, and Green Car Journal will name its pick for 2010 Green Car of the Year.
Meanwhile, check out this previous post, All eyes on automakers, for basic tips and links. And keep in mind that you should be thinking about the narrative behind the raw numbers. This time around, it’s whether or not November figures signal that 2009 sales will eke out an uptick over 2008’s dismal showing. If so, it’s an economic recovery story in the making, albeit one entangled with a lot of bailout and cash-for-clunkers controversy.
Speaking of which, for some serious background on how car sales affect jobs and the GDP, digest this September evaluation of this summer’s Car Allowance Rebate System (CARS) cash for clunkers program by President Obama’s Council of Economic Advisers. Note the links at the end to mainstream publications that may provide you with additional background or ideas for local stories.
Still stumped on how to make auto sales a viable local story? Well, if nothing else, you’ve probably got a few empty dealerships sitting around. Domestic automakers have yanked thousands of franchises as part of recent turnaround attempts and brand consolidation. Some marques, like Pontiac and Saturn, will fade away entirely. Urban Science, a Detroit-based consulting firms, tracks dealership closings and may be available to comment on your market.
Downsizing of the dealership ranks is leaving tens of thousands of empty acres in an already struggling commercial real estate market. The specialty sites aren’t easy to retrofit for other uses and won’t be cheap to raze and re-do. Here’s a great example – with map and photos – of how a cluster of shuttered auto retailers has gutted sales tax revenue in one Southern California community.
Also for you to explore: The loss of jobs, community support – who’s going to sponsor all of those softball teams and parades from now on? – and spin-off business to service firms like cleaning companies, parts dealers, landscapers, payroll processors and more.
