GM trucks outsell Ford first quarter !

philh wrote:
I'm in the auto industry. I've provided information I've learned from outside of my employer. I also have several friends that are business owners. I've floated trial balloon of 50% small business closure in MI, and nobody has disagreed, and I've had a couple of people suggest I'm being overly optimistic.

GM and FCA have reduced salaried employees pay up to 25%. Ford as of yet hasn't done any salaried reduction program.

OEM's are running on thin profit margins. Chop the top line and it will get very ugly on the bottom line very quickly. Lose just 10% in revenue, your 5-10% margins quickly disappear. Take away 25% of an employees gross pay, and watch how fast they don't lease another 50, or 60, or 60,000 vehicle.

You are right, this is different from '08, IMO, this is much much worse, and my opinion has nothing to do with politics. In fact, I've warned my wife that by the end of summer, I may be done working. Luckily, near the end of my career anyway, and we have put in place our long term planning.

I agree that this may be as bad or worse on the state than 08-09, depending on duration, but I feel that the auto companies are better prepared, and that was my point. I am not sure that the state economy is prepared.

Additionally, it appears that the government is providing more help to more this time. I don't want to start a political discussion, so saying nothing more.

I wish you well through this year. Hopefully the US can recover without serious impact.