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Out of the Spotlight * USA - An Industry Copes With Crisis
New York,NY,USA -The New York Times, by JOE NOCERA -November 28, 2008: -- ... The credit crisis is rippling up and down the economy in ways that may not create obvious headlines but that affect the way people do their business and live their lives. People, for instance, who sell and drive trucks... Like most companies in America right now, a crucial issue for G. David Gerrard, who runs a Chicago-area business that is the largest truck dealership in the United States, is credit — in his case, credit for his customers... Navistar has a captive finance company, Navistar Financial, which is the trucking equivalent of GMAC. But its cost of capital has risen sharply, thanks to the crisis. That means Mr. Gerrard’s costs have risen as well, since Navistar Financial supplies much of his financing needs... Perhaps more important, it means that it costs his customers more when they need loans to buy a truck. What’s more, other lenders, like GE Capital, have ceased making truck loans in the Chicago area. When I suggested to Mr. Gerrard that this must be good for Navistar’s business, he shook his head vigorously. It is impossible for Navistar Financial to make 100 percent of the truck loans, so the withdrawal of other lenders means that trucking companies will not be able to get loans to buy vehicles... (Photo by Sally Ryan for The New York Times - At David Gerrard’s truck dealership in Chicago, would-be buyers “can’t get financing,” he said)Labels: truckers' opinion
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