GM, Ford Auto Sales Fall; Toyota, Nissan, Honda Gain

Messages
6,426
Location
New Braunfels
http://quote.bloomberg.com/apps/news?pid=10000103&sid=a8w04OUwBcMM&refer=news_index "Oct. 3 (Bloomberg) -- General Motors Corp. and Ford Motor Co., the two biggest U.S. automakers, said U.S. sales of cars and trucks plunged in September, while the biggest Asian automakers reported gains of at least 10 percent. GM sales fell 24 percent, and Ford dropped 19 percent, the companies said in statements today. Toyota Motor Corp., the largest Asian automaker, had a 10 percent increase, No. 2 Nissan Motor Co. gained 16 percent, and Honda Motor Co. advanced 12 percent. DaimlerChrysler AG said U.S. sales of Chrysler and Mercedes-Benz vehicles were up 3.7 percent. "--SIC
 
Messages
239
Location
California
Ouch! Looks like the bond market predicted this 3 months ago. Thats what happends when you put all your eggs in one basket, namely trucks.
 
Messages
1,397
Location
Katy, Texas
quote:
Originally posted by jtantare: Ouch! Looks like the bond market predicted this 3 months ago. Thats what happends when you put all your eggs in one basket, namely trucks.
Yup... and people wonder why I won't buy a Ford or GM. Any person who can read a newspaper would realize that when their bonds are worth junk that they are a high investment risk because their products aren't selling well.
 

Bryanccfshr

Thread starter
Messages
6,426
Location
New Braunfels
On that note, it looks like the Daimler- Chrysler marriage is working out. Although modest they are making gains. I just hope they don't pull the Jeep line too far from its roots.
 
Messages
4,009
Location
Calgary Canada
I want to buy GM...but my truck keeps telling me not to. The title of this thread says it all...starting in the late seventies. Just wait till all the people that were raised on american iron start dying off, then it's all over baby. Ever see what everyone under 25 is driving?
 
Messages
1,779
Location
Central Iowa
I like the line from that article "The hangover has already started from employee-pricing promotions". It's hard to believe that companies with the potential of GM and Ford are consistantly so short-sighted. I have to wonder which one will be in bankruptcy first. Jim 5 nailed a good point. In the past GM and Ford worked hard to make their products appealing to the younger crowd. Not so anymore. How many younger people do you see driving GM or Ford products? No where near as many as drive Toyotas, Hondas and Nissans.
 
Messages
3,593
Location
Outside smalltown, IL
quote:
Originally posted by michaelc80: I like the line from that article "The hangover has already started from employee-pricing promotions". It's hard to believe that companies with the potential of GM and Ford are consistantly so short-sighted. I have to wonder which one will be in bankruptcy first. Jim 5 nailed a good point. In the past GM and Ford worked hard to make their products appealing to the younger crowd. Not so anymore. How many younger people do you see driving GM or Ford products? No where near as many as drive Toyotas, Hondas and Nissans.
The Autoline Detroit guy mentioned this a couple of weeks back - http://theoildrop.server101.com/cgi/ultimatebb.cgi?ubb=get_topic;f=42;t=002277 GM and Ford have not only gotten vehicles off the lots at reduced prices and profit, they've run themselves out of future customers in the process. Not good...
 
Messages
1,979
Location
Houston
Employee pricing was intended to get inventory levels down (for tax purposes?) and to keep the factories running to a degree that very expensive shutdowns could be avoided. In a company saddled with so much overhead like Ford and GM, shutting down a factoy doesn't really save any money at all. Retirees' pension plans, engineers and bean counters still work and get paid. Once they depleted enough of the stagnant inventory and the normal model year changeover shutdowns happened anyway, employee pricing can end. And evidently it did. At least for now.
 
Messages
239
Location
California
Whether its American or Japanese, the supersized SUV is dead.  - If you owned one of these puppies I hope you sold it already. Your resale value just went through the floor. WSJ today was reporting that some dealers are refusing to take SUVs for trade in.
 
Messages
1,779
Location
Central Iowa
quote:
Originally posted by jtantare: Whether its American or Japanese, the supersized SUV is dead.  - If you owned one of these puppies I hope you sold it already. Your resale value just went through the floor. WSJ today was reporting that some dealers are refusing to take SUVs for trade in.
Wow. What's the source for this info? Could you post a link to the original info? Some of them are between 55 and 60% lower this year. Some of the most popular ones like Suburbans and Yukons. Not surprising but higher numbers than I thought it would be.
 
Messages
4,378
Location
Camas, WA
"Ouch! Looks like the bond market predicted this 3 months ago. Thats what happends when you put all your eggs in one basket, namely trucks." Daimler-Chrysler was up 4% overall, and Dodge Ram trucks had a record month in Sept. Pickups in general didn't suffer like SUVs, but I suspect that a lot of larger trucks were diesels. My 3/4 ton Dodge is a diesel, and as mentioned in other threads although it's too heavy to be on the EPA mileage list it still places at the 50% point on the city mileage list.
 
Messages
12,385
Location
Northern CA
quote:
Originally posted by Bryanccfshr: http://quote.bloomberg.com/apps/news?pid=10000103&sid=a8w04OUwBcMM&refer=news_index "Oct. 3 (Bloomberg) -- General Motors Corp. and Ford Motor Co., the two biggest U.S. automakers, said U.S. sales of cars and trucks plunged in September, while the biggest Asian automakers reported gains of at least 10 percent. GM sales fell 24 percent, and Ford dropped 19 percent, the companies said in statements today. Toyota Motor Corp.,
The previous few months sales have been artificially high because of "employee pricing". I think that "Employee pricing" for the most part didn't steal sales from imports. It stole future sales from their own companies. In addition to having a lousy product lineup for todays conditions, the US car manufacturers have already sold a big hunk of the US cars that they would normally sold next year. Look for low sales for the entire next year, they already sold a lot of those cars last summer. Typical brilliant SFB US corporate upper management thinking. The US market system is focused on short term quarterly results so that's what the multi-million dollar salary CEOs go for. To **** with long term profits, do what gives the best short term profits and float out on a golden parachute.
 
Messages
2,698
Location
Silicon Valley
Isuzu Ascender? Don't they have to run these names past the decency committee first? Also interesting that there's nary a blip in LX470 or QX56 sales. Range Rover just had a complete redesign, so I can see the demand for it. Poor SAAB just came out with a big GM SUV clone. They were so proud of 'their first V8.'
 
Messages
12,385
Location
Northern CA
quote:
Originally posted by kenw: Employee pricing was intended to get inventory levels down (for tax purposes?) and to keep the factories running to a degree that very expensive shutdowns could be avoided. In a company saddled with so much overhead like Ford and GM, shutting down a factoy doesn't really save any money at all. Retirees' pension plans, engineers and bean counters still work and get paid. Once they depleted enough of the stagnant inventory and the normal model year changeover shutdowns happened anyway, employee pricing can end. And evidently it did. At least for now.
But what will they do when their sales stay in the toilet next year because many of their customers who would have bought next year don't because the bought at fire sale prices this year?
 
Messages
1,979
Location
Houston
"But what will they do when their sales stay in the toilet next year because many of their customers who would have bought next year don't because the bought at fire sale prices this year? " As long as performance bonuses are based on quarterly results (and actually fewer are these days), that'll be someone else's problem.... [Wink]
 
Messages
350
Location
Indianapolis, IN
Just think if these manf’s would bring over their diesel and turbo diesel models from other markets! It would be like the VW TDI frenzy, only with a more reliable product! I think Kia even sells a TD Sedona in Asia!
 
Messages
4,009
Location
Calgary Canada
I agree with Willy_G. Why not turn out more common rail diesels like the Jeep liberty. Apparently they sold out of all of them across america. For that matter...why not turbodiesel all the minivans that are on the road. Soccer moms won't know the difference....it's not like they're burning rubber all over town. The only trick will be preventing the soccer moms from filling them with regular.
 
Top