The Decline of Auto Purchases in 2008

In 2008, the absolute sign of the economic downturn was a decline in automobile purchase, insurance companies needed aid and retailers were closed due to a massive dismissal in these markets. As a result, these unemployed people can not pay the monthly mortgage and will be foreclosed. Mortgage execution is a legal process that prohibits or revokes the mortgagee's right to redeem mortgaged real estate ("mortgage execution", n.d.). In New Jersey, the state foreclosure rate was 0.03% and the unemployment rate was 7% because low wage employment replaced 179,400 high wage jobs (Mackenzie, 2009, p. 137).

Monthly data on sales of cars and houses reflects the sharp decline (Figure 3.8). Automobile sales declined 20% in the two months to December 2008, but existing home sales declined 34% between September and November 2008. Despite the economic downturn, the credit growth rate of Canadian households has hardly changed, but the government debt is rapidly increasing. In the fourth quarter since the recession began, borrowing at all levels by the government increased by 21%, and in most of the past decade it did not change (Figure 3.9). This increase reflects a steady increase in current expenditure and an increase in transfer payments and capital expenditure, resulting in a sharp decline in tax revenue as corporate and individual income declined .

Revenue has been decreasing since 2008. Since 2008, total consumer income has decreased by $ 3.2 billion due to a decline in consumer demand due to the economic downturn. However, sales in 2010 declined by 1% since 2009 and 5% below 2008. However, operating profit for 2010 was $ 1,998.8 million, an increase of 167% from $ 7.44 billion in 2009, and $ 77 million less than $ 77 million. Level of 2008 before recession. FedEx raised the price based on demand and raised the operating margin to 8%, but it exceeded the 5% level before the recession.

Demand slowed due to credit contraction, rising gasoline prices and rising unemployment rate, so 2008 was the worst year of the automobile industry in the past decade in 2008. Sales in North America and Europe, like growth in India, China and Brazil, may decline for the foreseeable future. The global automobile industry has been integrated for high cost, low demand, profitability. There were 42 independent global car companies in 1960 and only 17 companies were by the year 2000.