Saturday, April 23, 2011

U.S. railway production slows;

While auto production has increased in Japan after the tsunami affected production of models sold at a Scion Dealership Maryland, in the United States there have also been logistical problems with railroads and other issues. Models sold at Cadillac Dealership Morristown that are produced in the United States have seen delays due to sidelined auto carriers and repairs that are needed on railways. Many dealerships throughout the country have had problems with inventory due to shortages or fewer supplies from Japanese automakers and factories or from logistical problems in the United States.Providence Used Cars dealerships and other used cars dealers were not as affected since these dealerships only stock used cars mostly.

The Federal Reserve and the Association of American Railroads did a study and found that American railroads have been slow to keep up with the production of vehicles in the United States and have also been slow to return sidelined auto carriers. There have been delays at dealerships as a result of these slowdowns and other vehicles have been queued outside of assembly plants waiting to be transported. The Ford Explorer has had delays mostly due to high demand of the vehicle and some of the delays have been due to railways. A sales manager said that most people expect there to be delays for the Explorer and are okay with that.

During the recession in 2008, many railways ended up laying off thousands of employees and sidelined rail cars and locomotives due to budget cars and other financial concerns. In July 2009, 500,000 cars hadn't carried a paid load in over 60s while U.S. auto sales were the worst that they had been in decades. Sales bottomed out at 9 million (adjusted for the year) in February of 2009 and 2009 was not a great year for auto sales. Since then auto sales have increased partially due to incentive programs like Cash for Clunkers as well as a slightly better economy, but railways have not responded.