GM Inside News Forum banner
1 - 14 of 14 Posts

·
Registered
Joined
·
2,341 Posts
Discussion Starter · #1 ·
Sept. 3 (Bloomberg) -- General Motors Corp. and Ford Motor Co., the biggest U.S. automakers, said domestic sales fell at least 20 percent in August as demand for trucks continued to plunge because of record gasoline prices.

GM dropped 20 percent and Ford was down 27 percent. Ford further pared its planned second-half production in North America by 50,000 vehicles, and GM cut 267,000. Deliveries at Toyota Motor Corp., Japan's largest car company, tumbled 9.4 percent while outpacing Ford by more than 55,000 units. Tokyo-based Honda Motor Co. was down 7.3 percent.

The decreases were anticipated by analysts, who expected the industry to post its 10th straight monthly decline. More-generous incentives may make August stronger than July, when sales rates fell to their lowest in 16 years.

``Ford didn't have the attention-getting incentives that GM did toward the end of the month, so their SUV and pickup performance has been quite poor,'' said Alan Baum, director of automotive forecasting services at The Planning Edge Inc. in Birmingham, Michigan.

A weak U.S. economy, falling home values and gasoline prices near $4 a gallon have combined to sap auto demand, especially for the trucks that account for most of U.S. automakers' volume. Dwindling supplies of fuel-efficient small cars are further limiting sales.

http://www.bloomberg.com/apps/news?pid=20601087&sid=ahcgxxogVyDo&refer=home
 

·
Premium Member
Joined
·
8,727 Posts
Good God...Saab AND Volvo sales were each down approx 50%.

New Saabs are a year away and Volvo gets a new SUV in a few months.

How are these dealer groups going to survive?
 

·
Registered
Joined
·
6,028 Posts
Even with the horrible numbers, I don't get how GM can make any money giving it's cars away like it is.
 

·
Banned
Joined
·
110 Posts
man dont say they loose money---it all in the books they loose money. Every time ive been in a ford/gm store during super sales days they get u one way or another. either they charge full price or u get 0%. 8,9,10, thousand are made up in interest long term or up front in the final price ---no discounts
 

·
Registered
Joined
·
154 Posts
It seems like all of this is just never going to end. People are just to scared right now or just straight up don't have the cash to blow on a new car. It is sad to see that it has gotten this bad.
 

·
Registered
Joined
·
672 Posts
"A weak U.S. economy, falling home values and gasoline prices near $4 a gallon have combined to sap auto demand, especially for the trucks that account for most of U.S. automakers' volume. Dwindling supplies of fuel-efficient small cars are further limiting sales."

Where would we be without the helpful guidance of reporters? I think I have read these exact same words in just about every automotive article within the past 2 months. It's getting quite boring.
 

·
Registered
Joined
·
697 Posts
It seems like all of this is just never going to end. People are just to scared right now or just straight up don't have the cash to blow on a new car. It is sad to see that it has gotten this bad.
Panic sales of recent model year used vehicles are hurting new vehicle sales as well. Why buy a new truck, when you can find a one year old used for 40% of the cost?
 

·
Registered
Joined
·
17,579 Posts
Good God...Saab AND Volvo sales were each down approx 50%.

New Saabs are a year away and Volvo gets a new SUV in a few months.

How are these dealer groups going to survive?
Fixed ops. I don't think you can actually make money on Euro-imported new cars anyway, so I wouldn't cry. The only bad thing might be the warranties running out before the model changeover.
 

·
Registered
Joined
·
18 Posts
man dont say they loose money---it all in the books they loose money. Every time ive been in a ford/gm store during super sales days they get u one way or another. either they charge full price or u get 0%. 8,9,10, thousand are made up in interest long term or up front in the final price ---no discounts
You sir are a complete and utter itiot. Why do you even post this garbage. What are you like 15 years old or something?
 

·
Registered
Joined
·
6,455 Posts
Fixed ops. I don't think you can actually make money on Euro-imported new cars anyway, so I wouldn't cry. The only bad thing might be the warranties running out before the model changeover.
To fill this out a little more... ( I used to work for a European company that sold steel here ).

When the US$ falls like it has over the last 18 months it wipes out any profit that might have been built into the vehicles in Europe. Here's a brief example..

Say a Saab or Volvo cost 16000 Euro to make. 18 months ago when it cost $1.25 to buy one Euro that vehicle 'cost' the importer ( GM or F ) $20000 before it was shipped here. By the time it was shipped here and moved to a retail location and sold another $5000-$10000 was added to create the MSRP.

Today it costs ~$1.45 to buy one Euro. Previously it's been as high as $1.50 / 1. That same vehicle that costs 16000 euro to build cost the importer $24000 back earlier in the summer. That's a $4000 currency loss for every vehicle shipped from there to here in May June.

When that happens there is one simple solution... reduce shipments until the currency gets better in balance.

I see the reduction of Saab and Volvo as an intentional limiting of supply by the two parent companies. There is no reason for the manufacturing plants to ship those units to the States when they can be sold for more money in Europe.
 
1 - 14 of 14 Posts
Top