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According to Honda Motor Co., Honda
will cut North American production and worker
pay. It is estimated that they will cut
production by 62,000 vehicles by shutting
down factories for 13 days starting in May
and reduce pay for salaried and factory
workers. Like other rival auto manufactures,
the Japanese automaker has also offered
buyouts and early retirement incentives
to most of its 32,400 workers.
According to General Motors Corp.’s
new CEO, Fritz Henderson bankruptcy is a
likely path for the auto maker. President
Obama and the auto industry task force will
allow an unobstructed path to Chapter 11
proceedings for GM. Henderson has also indicated
that additional job cuts, plant closings
and brand shutdowns are likely.
According to a government report, President
Obama signed the American Recovery and Reinvestment
Act of 2009 on February 17, which includes
auto ownership tax assistance for many new-car
buyers.
What Taxes are Deductible?
• State Motor Vehicle Sales
• Local Motor Vehicle Sales
• Motor Vehicle Excise Taxes
What Customers Qualify for the
Deduction?
Individual customers with modified adjusted
gross income of less than $125,000 or joint-filers
making less than $250,000 a year in 2009
would qualify for the deduction.
Effective Date
New vehicle purchases shall apply to purchases
on or after the date of enactment (February
17, 2009) until December 31, 2009.
Several dealerships
have closed their doors with the downward
trend of auto sales and bleak economic environment.
Some of the nation's largest dealer groups
have faced similar concerns. Most recently,
Sonic Automotive has posted a fourth-quarter
loss and said auditors raised doubts about
the dealership group's ability to continue.
Equally uncertain, is
the fate of the nation's roughly 20,000
auto dealerships, many of whom are already
struggling to stay in business. Though President
Obama's announcement that he "will
not let our auto industry vanish" on
Monday was good news for dealers, they were
less heartened by his suggestion that he
would not be opposed to letting the companies
go into bankruptcy.
PMG continues to save
clients money and add value to purchasing
department in these tough economic times
and we appreciate those dealers who are
willing to share their stories with others
at 20Group Dealer meetings. If you would
like to present PMG to your 20Group please
notify your Client Service Rep or call PMG
and let us know when the meeting is and
we will assist you in preparing handouts
for the meeting.
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