Washington, DC – Paul Taylor, chief economist, National Automobile Dealers Association (NADA), talked to Lou Ann Hammond, CEO, www.carlist.com about the future of the auto industry.
Taylor talks about the $7.5 billion of the $700 billion that could be used for bad car loans.
Taylor says the most important element of all this is getting securitization back into the process. When credit becomes available, Taylor says, the economy will start growing again.
If the credit arms that have bad credit loans take any of the $700 billion bailout will the CEOs be limited to the maximum $500,000 salary that Congress put in the bill?
In 2006 over 200 dealerships went under, 2008 over 400 dealerships went under. Taylor tells us that NADA is forecasting 590 dealerships going under, but if this economy continues in a downward spiral how many could go under by the end of 2008?