Auto Dealer Monthly Magazine is the daily operations publication serving the retail automotive industry. This automotive publication serves dealer principals, officers and general managers with the latest best practices.
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JUNE The national average for a gal- lon of gasoline reaches $4 for the first time ever, according to motorist group AAA. SEPTEMBER The U.S. government unveils its plan for the takeover and bailout of mortgage giants Fannie Mae and Freddie Mac, further signaling a crumbling economy. Lehman Brothers Holdings Inc. files for Chapter 11 bankruptcy following huge losses in the real estate market. This is another blow to an already troubled na- tional economy and is regarded by many as the height of the country's financial crisis. Shortly thereafter, Merrill Lynch & Co. Inc. is acquired by Bank of America Corp. for $50 billion. Wall Street sees the Dow Jones Industrial Average drops 504.48 points in a single day, the worst one-day loss since the terrorist attacks of 9/11 NOVEMBER Ford sells most of its share of Mazda Motor Co. for about $540 million, reducing its stake in the company to 13 percent. GM announces a third-quarter net loss of $2.5 billion and says it may not have enough cash to make it to the end of the year. CEOs of the Detroit Three— GM's Rick Wagoner, Chrysler's Bob Nardelli and Ford's Alan Mulally—meet with congres- sional leaders to plead for a 24 bailout. Later in the month, they appear be- fore the House Financial Services Committee to testify and are famously criticized by lawmakers for traveling to Washing- ton, D.C., by private jets to ask for aid. The Federal Reserve Board announces the cre- ation of the Term Asset- Backed Securities Loan Facility (TALF) to support lending to households and small businesses by providing liquidity to the frozen market for securi- ties backed by bundles of car loans, equipment leases and student and small business loans. Automotive chat provider ActivEngage launches multiple-language trans- lation for live chat on auto dealership websites. DECEMBER President Bush announces a rescue plan for GM and Chrysler that will make $17.4 billion in federal loans available almost immediately; part of the $700 billion previ- ously set aside for TARP, in the hopes this will stave off possible bankruptcies for both automakers. GM is to receive $13.4 billion and Chrysler LLC $4 billion. Auto Dealer Monthly publishes The Complete Guide to Special Finance written by Greg Goebel. 2009 JANUARY Toyota grabs the title of world's largest automaker, unseating GM from its 77-year reign. The Japanese automaker sold more than 8.97 million vehicles worldwide in 2008. In response to a troubled economy and consumers skittish about job losses, Hyundai Motor Co. be- gins offering its unique "Assurance" program, advertising to consumers that if they purchase a Hyundai and lose their job within the next year, they can return the car. FEBRUARY A presidential task force on the auto industry is convened as newly-seated President responds to requests for aid. GM announces a $30.9 loss for 2008. GM and Chrysler seek another $14 billion in loans from the federal government, promising further deep cuts to their operations. MARCH The presidential task force established a month earlier tells GM CEO Rick Wagoner he must step down. He will be replaced by Chief Operating Officer Fritz Henderson. Both Chrysler's and GM's Restructuring plans are rejected by the administration. Chrysler is given 30 days to make a deal with Italian automaker Fiat S.p.A., while GM is given 60 days to formulate a new plan. APRIL The government forces Chrysler to file for bankruptcy