The opportunities for expanding new car sales did not appear promising given declining customer confidence and recent layoffs at several local plants that were expected to hurt the local economy. However, recent promotional incentives had reduced the inventory to manageable levels. From discussions with Larry Winters, Auto World's sales manager, Sulllivan-Diaz had concluded that costs could be cut by not replacing the departing sales representative, maintaining inventory at current reduces level, and trying to make more efficient use of advertising and promotion. Although Winters did not have Walter's exuberant personality, he had been Auto world'd leading sales representative before being promoted and had shown strong managerial capabilities in his current position.