The human race's prospects of survival were considerably better when we were defenseless against tigers than they are today when we have become defenseless against ourselves. - Arnold Toynbee

In the fight for survival, a tie or split decision simply will not do. - Merle L. Meacham

A nation without the means of reform is without means of survival. - Edmund Burke (1729-1797)


Last year some 1600 automobile dealers failed to survive. One needs only to view the sales figures to understand why. In 1978 the U.S, had an 11-million car year. This fell to 10.3-million in 1979, and then down to about 9-million in 1980. With a little simple arithmetic it would seem that we lost sales of 2-million cars. But during this period we had the imports increasing their share from 2-million in '78 to nearly 3-million last year. It is little wonder that more domestic dealers did not fail.

Comparing fleet sales for the same period may be brighter but may not be too consoling for some who barely existing today. In a similar period, fleet sales have dropped from 1.5-million in '78 and amazingly held to 1.35-million in '79 and, amazingly, held to 1.25-million in '80. Import penetration in fleet sales is not such a factor as in retail since imports account for just over 10-percent of their fleet and over 25-percent of retail.

The net reasoning is that many dealers are getting strong support for survival through their fleet sales programs.

More than the 1600 dealers who did not last, did not show up for the recent NADA annual meeting here in Los Angeles. Business is tough out there and budgets are tight so attendance was down more than 20-percent. Wendell H. Miller, NADA's new president (Dodge-Honda Lincoln-Mercury in Binghamton, NY) assessed his new role and does not plan many changes in NADA's group survival effort; he is quoted as saying "You don't rearrange the deck chairs in 20-foot seas.'

Miller feels that the largest threat to dealers is no longer the factory but interest rates, imports, government and regulation. Summing up his feelings (he's also a tennis fan) he said, "I can remember when we played singles with the factory. Now, we are on the same side of the net."

The new administration may have four years to prove itself but the economy and consumer confidence need help now. Although the car manufacturers are losing monies at unprecedented levels, they are still brave enough (and wise enough) to continue the accelerated program of down-sizing the model line-ups as well as investing huge sums in renovating outdated production facilities. As a nation, America is still basically sound and individual transportation freedom is a philosophy that is deeply engrained in our lifestyle.

Show me that man who will rapidly bring interest rates and inflation down, and I will show you a man that will remain in Washington. Importantly, we need that kind of help now.... in order to continue ourselves.

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