The third quarter of 2008 was the last "healthy" quarter before the recession kicked in across the country. In the third quarter as in most quarters, the "New Motor Vehicle Dealers" business group was the highest sales tax generator in Burlingame. For Q3 of 2008 it generated about $555,000 of sales tax which was down 25.2% from Q3 of 2007.
Today's Wall Street Journal reports:
"After years of market-share declines, Chrysler, GM and Ford Motor Co. have been left with many more dealers than than they need.
Now the recession and tight credit markets are pushing many dealers over the edge. Hundreds have gone out of business over the last 15 months, including about 400 Chrysler stores since January 2008.
GM is making plans to drop 2,600 of its more than 6,000 dealers and said Monday it plans to inform affected locations on Thursday. Chrysler has told the U.S. Bankruptcy Court in Manhattan it is likely to cut more than 800 dealers and could begin notifying those that will be dropped later this week, people familar with the matter said."
Burlingame is lucky to have a set of established and diversified dealers in the city. Let's hope they can weather this storm.
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