Quote:
Originally Posted by steinravnik
GM, Ford Likely Dragged U.S. Car Sales to 15-Year Low
July 31 (Bloomberg) -- General Motors Corp. and Ford Motor Co. probably dragged U.S. vehicle sales to a 15-year low in July as record gasoline prices caused consumers to shun big pickup trucks and automakers didn't make enough fuel-saving small cars.
GM, Ford and Chrysler LLC may have each posted their sixth straight monthly decline in sales, according to a Bloomberg survey of four analysts. Honda Motor Co., the major Japanese automaker least dependent on pickups and sport-utility vehicles, likely recorded its fourth consecutive gain.
A slowing economy, $4 gasoline and the worst housing market since the Great Depression may extend the industry's slump. Automakers' plans to trim lease offers because of the plunging value of returned vehicles also may crimp demand.
``It's going to put more downward pressure on auto sales,'' said Erich Merkle, an analyst with the Crowe Chizek & Co. consulting firm in Chicago. ``Automakers have been able to make the monthly payment very attractive through leasing.''
July sales will match June's annual selling rate of 13.6 million vehicles, according to a Bloomberg survey of 40 analysts and economists. That was the lowest level since 1993, when the industry was emerging from a recession.
GM sales probably dropped 25 percent, Ford's 20 percent, and Chrysler's 27 percent, according to the average estimates of the four analysts surveyed. The figures are adjusted for two more selling days this month than in July 2007; unadjusted percentages would be about 8 points less severe.
http://www.bloomberg.com/apps/news?p...d=aHW_tS41tgwA
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I have honestly never heard so many
probablys,
likelys and
maybes since I asked my wife if I could get a new TV next month.
I may be ignorant, but is this really news? I could spend my days writing this kind of stuff...
Even the title is speculation!!
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GM, Ford Likely Dragged U.S. Car Sales to 15-Year Low
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I'm starting to see some upward turns in sales (finally) at my dealership... funny thing is, some salespeople left recently to go to other dealerships that host Nissans, Hondas and Toyotas and they aren't making any money either. I'd say that this is an across-the-board problem. As far as getting out of the truck business, that would be a mistake, obviously. Several of my units recently have still been Yukons and Sierras. Not too many G5 or G6s... hmmm....
The efficient new units are there, but it seems as if the market has been scared crazy. Instead of paying 14,9XX for a new G5, I've had people pay 13,9XX for a used Saturn Ion with 40K+ on the ticker, with little more than a certified warranty on it (which was more than it was purchased for new). The consumer's perception is fueling the market on vehicles that are being purchased, not facts. Pretty sad, considering that makes my living... but it will get better. I'm not going anywhere- it's a rough ride, but it will be worth the wait.
Anyways, my 2 cents.