A changed world...with some caveats

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It was interesting to hear different takes on the billions the major American automakers are asking for from the American taxpayer to keep them from going under.

Whether people agreed or not that their should be a bailout, one thing was clear Friday: the industry is in for a big change, and that will trickle down to what we see locally.

There will be less dealership lots. We might live in a new world in which not as many car dealerships will line the sides of freeways. Credit to buy a car will be harder to get. And those cars will likely be more efficient and smaller.

But a couple of caveats also emerged.

One was, despite dismal vehicle sales, dealers continue to report more sales of trucks and SUVs as gas prices come back down.

In six months, if those prices are still low, the psychology of buyers might shift away from green fuel and back toward gasoline, one dealer told me.

Another caveat was just what will replace car sales tax revenue for local cities.

That was an open question, which both dealers and city officials were asking as of Thursday. 

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Economic Alert is a daily blog on business and the economy in the San Gabriel Valley and beyond, featuring updates and observations from the staff of the San Gabriel Valley Newspaper Group. SGVN includes the San Gabriel Valley Tribune, Pasadena Star-News and Whittier Daily News.

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Kevin Smith is business editor for the San Gabriel Valley Newspaper Group. Over the past 15 years, Smith has covered development, housing, employment, technology and financial trends for a variety of newspapers.
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Ryan Carter covers business and the economy for the San Gabriel Valley Newspaper Group.
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About this Entry

This page contains a single entry by Ryan Carter published on December 4, 2008 5:36 PM.

Family of trampled Wal-Mart worker sues retailer was the previous entry in this blog.

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SanGabe.biz is the San Gabriel Valley Newspaper Group's online resource for local business development. Get info on tax law, accounting, legal forms, marketing, sales and more.
The San Gabriel Valley Small Business Development Center offers classes, counseling and consulting for entrepreneurs and small business owners. The SBDC is a partnership between Mt. San Antonio College and the U.S. Small Business Administration.
The San Gabriel Valley Economic Partnership is a nonprofit corporation dedicated to improving the valley's economy.

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