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Non-Tech : Sonic Automotive
SAH 63.59+2.2%Oct 31 3:59 PM EST
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To: Cary C who wrote (28)7/2/1998 10:58:00 PM
From: Roy S. Newman II   of 60
 
Cary,

The effects of these strikes won't be devastating at the retail level, provided the strike doesn't go for many months. Most dealers will be glad to cut inventory back and floor plan costs will be lower and sales forces can be trimmed. Also, they can load up on factory cars to fill the gap some.

The biggest problem facing dealers will be the restocking once the strike concludes. If it drags out, GM will be shipping 98's in late summer in droves to catch up, while dealers wont be to excited about trailers loaded with the 98's arriving at a time when they want to cut inventories back. Should be interesting politics as the sales zone managers try and push all that product on dealers.

Good luck. Roy
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