The government bailout of Detroit automakers is also good news for the used car industry. John Blair, ALG's CEO, says the bailout package will add stability to the weakened domestic market, allay concerns over parts and servicing, and improve short-term residuals.
All automakers are taking steps to preserve cash. Honda and Audi have announced plans to cut ties with two high profile racing series. This despite the fact that these two automakers are profitable. The Detroit automakers, however, have refused to cut or reduce ties with NASCAR. Recently Detroit was on Capital Hill with restructuring plans in an attempt to receive $14 billion in bridge loans. Cuts to racing sponsorships were not mentioned.
Hyundai has had success in the rental fleet market. It is now evaluating involvement in the commercial and government fleet market to be stronger when the recession ends.