While news of declining automotive sales is really no news at all, in the past few months manufacturers have experienced unprecedented declines both domestically and globally. Light vehicle sales in the U.S. were down 18% in 2007-2008, and the volume of world car sales fell between 20% and 24% in November 2008 alone, depending on varied estimates. Judging by American sales, the Big Three suffered most in 2008, with Ford and GM dropping by more than 20% and Chrysler by 30%. Number 2 in the market, Toyota also fell by 15%
The world’s largest and most profitable automaker, Toyota expects it’s first-ever operating loss in the financial year that ends in March, and stated that it would reduce output by 27%. GM and Ford have cut back by a similar amount.
With these continuing and alarming trends showing no immediate signs of slowing, dealerships are left searching for ways to reduce overhead as a means to offset drastically reduced sales. Payroll and other personnel expenses, as well as fuel and related transportation costs, are all on the chopping block in a constant struggle to shore up the bottom line.
Diligent Delivery Systems offers cost-saving solutions to personnel and transportation costs.
