The head of the Louisiana Auto Dealers Association says President Barack Obama’s proposal to have the federal government back General Motors and Chrysler warranties could sharply boost sales of new vehicles. Bob Israel says questions about the future of GM and Chrysler — and what consumers would do with warranties if either went out of business — have been a major factor in dragging sales down.
Sales of new vehicles in Louisiana are off about 20% from a year ago, compared with 35% to 40% nationally. Israel says sales should be doing better in Louisiana because of the state’s economic condition, but buyers are being scared off by the problems of the automakers. The state has lost 25 new car dealerships since September.
