The automotive maker report yet another horrific month of sales.
U.S. auto sales fell 37 percent in March, a smaller-than-expected drop that encouraged hope the world’s largest car market is nearing a bottom after a freefall that has pulled the industry into a deepening crisis.
Break down the numbers:
- GM sales were down 45%
- Ford Down 41%
- Chrysler and Major Japanese Automakers down 36% to 39%
Of the current conditions, an S & P analyst said:
“We believe we may be at or near the trough of the industry’s year-to-year comparisons but do not see an uptick in industry demand before (the fourth quarter) at the earliest,”
Just to point out, this is the third month in a row that someone from S & P has stated we are at or near the industry year-to-year bottom. I guess they are following the theory that if one says it enough it will come true.
Update – 11:09 PM: For perspective, take a look at the sales numbers from Jan 09. The latest numbers are far worse for GM and Ford. So much for finding a bottom, huh?
GM – also known as Government Motors – ask for ANOTHER 2.6B from the government
General Motors looks to be heading toward bankruptcy… a “controlled” bankruptcy… backed by taxpayer funding.
Aside from the fact that GM obtained Billions from the government simply to stay alive this far into 2009, they still have the balls to ask for EVEN more money but this time they are playing the “clean technology” card.
General Motors Corp has asked for $2.6 billion of low interest government loans to support the development of three new hybrid vehicles, according to a business plan update released on Wednesday.
GM’s loan request, which would help develop two spinoffs from its all-electric Chevrolet Volt, raises to $10.3 billion the aid it is seeking under a U.S. Energy Department program designed to support development of fuel-efficient vehicles.
It will be interesting to see if the Department of Energy approves the loans or not. At this point it has become virtually impossible to even form a guess as to what is going to happen next in the automotive industry.
ADP Unemployment Report
Friday the U.S. Department of Labor is expected to announce the NonFarm Payroll report. While economists are predicting a loss of 670,000 jobs, ADP, one of the largest payroll company in the world, release actual number on Wednesday for the month of March – 742,000
Where will the unemployment rate under up this month? We are already 8.1% but with such a large number of layoffs in the month of March, I’m guessing we will be up to 8.5%… maybe a bit higher.
With no end in sight to the layoffs I still suspect the U.S. economy will see a recorded rate of unemployment of 10% by the end of the year.
Related posts:
- Sept. US auto sales fall amid clunkers letdown As noted back on 9/21, auto sales were in the...
- Unemployment continues the push toward 10% The latest unemployment numbers are out and the situation continues...
- Who would have thought the Auto Industry Bailout would cost more than expected! For almost 5 months now, I’ve continually said the total...
- Unemployment Continuing Claims – Just remember this… How does the Bureau of Labor Statistics come up with...
- Oh, btw, the EU has 10% unemployment… Just reading over some of the business news I missed...
Related posts brought to you by Yet Another Related Posts Plugin.