From the “Captain Obvious” news headlines, December automotive sales where pathetic for just about all automakers. I think everyone had expected the numbers to be bad, much in the same way the December retail number that will come out this week will be miserable, but how longer can the auto industry keep afloat while putting up sales number like this:
Toyota – 35% decline
Honda – 35% decline
Chrysler – 53% decline
Ford – 32% decline
Nissan – 31% decline
GM – 31% decline
Daimer – 24% decline
VW – 14% decline
BMW – 36% decline
The two scary number out of the pack came from GM and Chrysler.
First, General Motors sold the fewest vehicles in a year since 1959. Think about that for a moment… GM sold more cars 50 years ago – when there was NO MAJOR interstate highway system yet built. (for the record, most highways were completed between 1960 and 1990) So, General motors was selling more cars when there were less roads and less people in the United States than today.
The second number, the one that really caught the attention of market analysts, was the 53% decline Chrysler posted. Ouch! What could have been the cause for such a drastic decline in their sales? Did customers expect the company to go bankrupt and stay away from their products, much like the company expected? Was it due to product line – simple lack of demand? Was their some other unknown that the market should be paying attention to?
There was a bit of positive of news – Subaru said its where sales higher in 2008 on strong demand for Forester and Impreza models, which allowed the company to be the only automaker to post a year-over-year sales increase.
As I’ve been saying for months now, it will get a lot worse before it gets better. I believe the news out of Chrysler now puts them 1st in line to go under.
Related posts:
- Sept. US auto sales fall amid clunkers letdown
- Putting the Chrysler 53% sales drop into perspective
- An update on auto sales, the gall of GM and ADP Unemployment report
- Chrysler files bankruptcy court motion to eliminate 789 of its 3,200 US dealerships
- Japan auto production marks worst drop since 1967