Chattanooga: Local car dealers feel sense of relief

The federal government’s decision to bail out the U.S. auto industry should bolster consumer confidence and help Chattanooga area dealerships mired in stagnant sales, dealers said.

R.J. Rhodes, general manager at Smith Chevrolet in Stevenson, Ala., said the $17.4 billion in emergency loans earmarked for the automakers will help turn the automobile market around, but he noted the Big Three should begin paying attention to the needs of consumers.

“This walrus didn’t get big, fat and ugly overnight,” he said. “They haven’t been thinking about the consumer, but now I think they will start building cars consumers want.”

President Bush cited danger to the national economy Friday when he agreed to the pleas for an emergency bailout in exchange for concessions by the automakers and the United Auto Workers.

Mr. Rhodes said the bailout could help turn the market around in three or four months.

“This is a good thing,” he said. “Business, we feel, should turn around by March.”

Bill Kile, owner of Kile Dodge Chrysler Jeep in Cleveland, Tenn., said he hopes the bailout boosts business for the automakers, but the details of the plan have not been explained.

“We don’t really know that much about it right now, but we hope it will turn things around,” he said.

He said Chrysler Financial has stopped purchasing credit, which makes it difficult for people wanting to buy a car.

“I think (the bailout) will help if we can start getting financing available,” Mr. Kile said. “We have some available, but it is very tight right now.”

If consumers can get financing, Mr. Kile that said Chrysler, as well as Ford and General Motors, are offering rebates and great deals.

“Now is really the time to buy a car,” he said.

Jim Gentry, owner of Gentry Chevrolet Pontiac Buick in Kimball, Tenn., said the bailout is badly needed.

“Without it, we (were) headed for the worst recession this country has ever seen,” he said.