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Backseat Driver: Consumer confidence as lowest level since 1973

Most indicators of economic activity track the present or the past – what’s the Dow at, what’s the price of oil, how many vehicles sold last month, were housing starts up or down last month?

The Conference Board’s Expectations Index looks at the future.

And the latest findings are not encouraging.

The board found consumer confidence in March at its lowest level since 1973 – back when Richard Nixon was president and the Organization of Petroleum Exporting Countries first flexed its muscle by restricting oil production, thus driving up prices.

It is hardly news that most of us are currently apprehensive about the future. What with record oil and gas prices, the economic meltdown caused by the sub-prime mortgage crisis and George Bush’s interminable war in Iraq, these are not happy times.

Unfortunately, the findings from the Conference Board’s Consumer Research Center reinforce the general sense that the American consumer is pessimistic about the future - and when people are pessimistic, they do not buy big items like cars and trucks.

That’s bad for the auto makers and this week’s Automotive News says manufacturers are cutting production, laying off workers and asking suppliers to lower prices.

And it’s bad for dealers who are caught in the middle, trying to market vehicles to wary customers against a backdrop of tighter credit.

But there is one ray of light. With manufacturers and dealers keen for sales, it’s good for those consumers who can afford to get into the market as there are plenty of discounts and bargains out there.

- Peter C. T. Elsworth

Posted by Peter C. T. Elsworth  at 4:07 PM to commentary | Permalink | Comments 0

Tasca aims on third nitro Funny Car start this weekend

HOUSTON – After bad weather cancelled Friday qualifying runs for the past two NHRA POWERade Drag Racing Series events, Bob Tasca III and the Motorcraft/Quick Lane Shelby Mustang team head to Houston this weekend with the hope of not needing their rain gear, according to Tasca's spokesperson Alexis Kinch.

“As a new team, the one thing we cherish is run data, and to lose four qualifying runs in the first three races of the year has not helped us at all,” said Tasca. “One of the most important things for us this weekend in Houston is get all four runs in. If we can do that and do well in the race on Sunday, we’ll go and test on Monday and hopefully come out with a lot of runs and data to take with us into Las Vegas.”

After getting eliminated by Jim Head in the first round of competition in Gainesville two weeks ago, Tasca looks forward to getting his car down the track and earning a qualifying spot in the top half of the field.

“We’re excited to go to Houston because we’ve really started to get a baseline on this racecar,” said Tasca. “I’ve always felt that it was going to take us five or six races for us to do that. We’re going to stay and test on Monday after Houston regardless of how we do this weekend, which is a really important part of our program. Just being able to continue to practice and refine the combination on our car is really beneficial to our team.”

In a sport that is measured by fractions of seconds, fine-tuning and setting up the car exactly right for track conditions is the main focus for the team this weekend.

“It comes down to being able to control the car through the clutch and apply the proper amount of power to the race track,” said Tasca. “These cars overpower the track, which is really the issue that we face. We have plenty of horsepower to do the job, but we just have to do a better job of managing the power to get these cars to go from point A to point B.

“Our team has a lot of confidence going into this weekend. We’ve got a good team; we’ve got great sponsors and a lot of talent in our crew chiefs. Truthfully, for me as a driver, every time down the track I’m getting more and more comfortable in the car.”

Posted by Peter C. T. Elsworth  at 10:51 AM to Racing | Permalink | Comments 0

Mack Truck dealership moving to Johnston

JOHNSTON — A Mack Truck dealership — Ballard Truck Center — has negotiated a tentative land agreement that would allow it to move into the town’s industrial park on Shun Pike, according to Mayor Joseph M. Polisena, reports The Providence Journal.

Apparently, Mack likes the idea of being neighbors with A. Duie Pyle and FedEx. The basic idea is to provide service to the two trucking companies, Polisena said.

“They feel very good about coming,” Polisena told the Town Council at a recent meeting. “It’s almost like an ice cream shop opening across the street from a playground.”

The dealership has a tentative purchase and sales agreement with the overseer of the Shun Pike industrial park, the Rhode Island Resource Recovery Corporation, Polisena said.

At present, Ballard Truck Center is operating in Worcester, Mass., and in Coventry at 80 Centre of New England Blvd.

Once it moves into the local park, Mack would sell Mack trucks, as well as parts for the big rigs. It would have a service department for repairs, Polisena said.

Posted by Peter C. T. Elsworth  at 10:42 AM to Local dealerships | Permalink | Comments 0

Ford Says 'Tata' to Jaguar, Land Rover

DETROIT -- Ford Motor Co. is selling its storied Jaguar and Land Rover brands to India's Tata Motors Ltd. in a deal that will net the U.S. automaker $1.7 billion - roughly a third of the price it paid for the two luxury brands, according to the Associated Press.

The deal announced Wednesday will expand the Indian carmaker's reach around the globe and give Jaguar and Land Rover badly needed capital to update and expand their product lines.

The agreement had been in the works for months as cash-strapped Ford sought money to fund its turnaround plan.

Tata will pay $2.3 billion for the British brands, but Ford will pay about $600 million into the Jaguar-Land Rover pension fund when the deal closes, Tata's statement said.

Posted by Peter C. T. Elsworth  at 10:19 AM to Ford | Permalink | Comments 0