Mortgage industry meltdown may impact future tire demand, Ludwig says
"The meltdown in the sub-prime mortgage industry may well impact tire demand in the coming months," predicts tire industry analyst Saul Ludwig in the October installment of the "Ludwig Report" in Modern Tire Dealer magazine.
"Foreclosures are already at a peak, and with the ongoing repricing of adjustable rate mortgages to much higher interest rates, the foreclosure problem will only worsen. Consumers’ pocketbooks are being stretched even tighter.
"For you, as tire dealers," Ludwig says, "it means getting even more clever with the way you promote. For sure, keep your showroom spotless and have your counter staff dress sharp with clean (and pressed) shirts. If you look good, your customers will think you are good."
Ludwig is a managing director with KeyBanc Capital Markets Inc. based in Cleveland, Ohio. Look for the full "Ludwig Report" in the October issue of Modern Tire Dealer magazine.