Never waste a perfectly good recession…

The auto industry is particularly important to my company. Yesterday’s news stated that Auto sales fell to 9.1 million seasonally adjusted annualized rate...far below even the worst case scenarios in the automakers 2009 plans (GM was planning on 10.5 M and Ford was planning on 12.0M). Continued months with sales rates in a similar boat will mean more drastic action is necessary from all automakers.

Furthermore, GM filed a statement with the SEC that bankruptcy was a possibility if its Viability Plan didn’t succeed. GM’s auditors, Deloitte & Touche said, “recurring losses from operations, stockholders' deficit and inability to generate sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern." Basically, GM’s auditor has serious doubts about GM’s ability to continue without bankruptcy.

So what does that mean to me?

I’m not spending a whole lot of time waiting for the bottom. While we have traditionally sold our wares to the consumer, through the auto dealer, we are creating a product (quickly!) to go straight to the driver.

Tough? Very much so.

If I can generate 20% of our typical volume, I will more than double my net.

Why didn’t we go there before? Great clarity comes from opportunity wrought from adversity.

Will it work?

I’ll let you know…I'll even invite you to protect your tires and wheels!