http://autos.canada.com/news/story.html?id=17fbd1fe-af08-4e73-8c74-f22d8e40ee69
Summary
My blog is about a recent vehicle warranty scam that is rapidly picking up momentum in
Connections
I connected this article to the warranty service part of the chapter. Almost all automotive companies such as Ford, GM, and Honda offer warranty services to their customers to gain revenue. However, with this recent warranty scam customers are going to be hesitant to buy vehicle warranty. With the downturn in the economy as of late, automotive companies cannot afford their customers to pass on buying vehicle warranty from them. At the end of the accounting cycle, automotive companies are going to see less revenue coming in due to this scam. With big automotive companies like GM and Chrysler already going bankrupt in the States, what can we expect to happen to the automotive companies in Canada with all these scams surfacing and hurting our economy?
Personal Reflection
I think that this warranty scam occurred at the worst time possible. Automotive companies currently are seeing a decrease in revenue from previous years, and this certainly does not help to increase revenue. If things do not get better for automotive companies, it seems that Canada’s automotive companies may end up like the States. I think that the government may need to bailout some major automotive companies in the future with all these troubles surfacing for them. Automotive companies may begin to cut employees, reduce salaries, and even decrease research to continue operating. I think that the government needs to crack down on these scams because they are affecting our economy as well as our citizens.
Harman Basra
Financial Accounting
Block B
1 comment:
I agree with your statements about how this is a horrible time for scam to happen because people are vulnerable right now. This is even worse for the Car dealerships because even though they are going through some tough times right now, the scam will make people feel less safe with them and they'd probably look for insurance elsewhere. This takes a huge toll on the income on these Dealerships and it doesn't help out there revenue. I also agree with your statement about how the government should do something about these scams right now because if things keep going on the way they are right now, the bailout that you speak of, may actually become reality and that's isn't the best option available. So basically, I believe that the government should step in and take action or else things may end up worse than they are right now.
Mandeep Dhami
Financial Accounting 12
Block A
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