An indication of how bad the economy is for the U.S. Auto Industry

[Stuart G]

Media Outlets Losing Money Through Lack of Auto Ads....


Source: New York Times

The flight of advertising dollars to the Internet is one explanation for the pain felt by traditional media.


Another culprit that is increasingly to blame is Detroit.

For all the discussion of new media’s role in hurting profits and revenues at traditional media outlets — newspapers, magazines, broadcast television and radio — the sharp downturn in the auto industry is another big culprit, and is taking an increasing toll on the advertising revenue generated by the media.

In the first quarter alone, the auto industry spent $414 million less on advertising than in last year’s first quarter, according to TNS Media Intelligence.

http://www.nytimes.com/2008/08/11/business/media/11auto.html?_r=1&oref=slogin

If you read this story, you will see that much less advertising revenues are going into all kinds of media. The story shows the dire straights of U.S. Auto Makers. In my opinion, it indicates the likely bankruptcy of one of the three. You must advertise to sell these cars, and they cannot. It even discusses the inability of local dealerships to advertise, and how that affects newspaper revenue. It is recommended reading.

[zbdent]

1. wait ... it was somewhere in my paper

Let me look through the pages and pages of auto dealer ads ... I know it's in there somewhere ...

[tnlurker]

2. I ran into a guy that makes sales calls to the local auto dealers

He said that one of the dealers told him that there has not been a single customer test drive an SUV in over 90 days at his dealership.
The only thing selling are the smaller cars now. He said that some dealers are not even taking in SUVs for trade ins. They know that they can not be sold so they don't want them at all even if it would make another car sell.

[Ganja Ninja]

3. They have no one to blame but themselves.

The American auto companies have never committed themselves to making and selling small fuel efficient cars in America even though they have subsidiaries in Europe and Asia that make suitable vehicles.

[Liberal In Texas]

4. The auto industry ignored long term planning for short term profit.

And now they're paying the price. And so are entities like newspapers that depend on ad revenue from them.

[old mark]

5. Remember, there were big tax breaks for those who

bought the behemoth SUVs. I wonder where the tax breaks are for realistic cars?
Ten years in the future?
The oil companies are so much in control of the Republican givernment, they can even trash the auto makers without the government interfering.

May newer, big SUVs for sale around here, no buyers.

mark

[TheFarseer]

6. there are tax breaks on hybrids

but you can only get a tax break for the first 60,000 or something sold. So now you can get a tax break on a Yukon hybrid, but not a Prius. What was the point of that law again?

[spanone]

7. dropped my car at the dealership for service on sunday...the entire dealership was closed

guess they are not selling too many cars....honda dealership

[Stuart G]

8. My over all concern with this one is about jobs, espcially U.S. jobs.

of workers making those cars. I don't know what rung in hell these auto execs belong in, but they seem to be taking care of themselves. It is obscene that the guy at GM is still there.

But those are good jobs with good benefits, and they will be gone. What a bunch of assholes those execs are. Not one of them planned for this, and who gets screwed? The workers. The newspapers are like third or fourth.
.. It reminds me of that film about Roger Smith made by Micheal Moore. Roger and Me These people, the execs, couldn't care less. :grr: :grr: :grr: :grr: :grr: