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| Home Front Economy |
| Auto sales plunge as credit crunch hits |
| 2008-10-02 |
| Major automakers reported plunging U.S. sales for September -- led by a 34 percent slide at Ford Motor Co -- as an escalating credit crisis hit the slumping industry and raised new doubts about when the world's largest auto market would stabilize. |
| Posted by:Fred |
| #23 the 'boom' of the past few years in car sales was from home equity cash outs... now that the 'free' money of the home re-fi has dried up, the car bubble is going to burst. |
| Posted by: Abu do you love 2008-10-02 22:01 |
| #22 A falling Dollar is really a pay cut for the whole of America. You don't say. My $0.99 USB cables from the 99 cent store are now costing me $1.49. |
| Posted by: Zhang Fei 2008-10-02 21:54 |
| #21 What would the dollar tank against? The Euros and the Brits are doing their own bailouts by the hundreds of billions, I don't see why the dollar would fall against the Euro or the Pound. |
| Posted by: Mike N. 2008-10-02 18:52 |
| #20 ZF, A falling Dollar is really a pay cut for the whole of America. |
| Posted by: Bright Pebbles 2008-10-02 18:33 |
| #19 I just thought it a little ironic, that US companies, Ford, Dodge, and Chevy use foreign/cheap labor of Canada & Mexico (non-USA jobs) and Japanese Toyota supports jobs in USA. Given that the loonie is at parity with the dollar, I don't think Canuck workers qualify as cheap labor any more. After the multi-trillion dollar handout programs Congress is devising work their way through the system, and the US dollar tanks, even Mexican labor might not qualify as cheap labor. It would be amusing to hear of Mexicans complaining about hordes of American illegal aliens stealing their jobs. But then there's a silver lining to the dollar getting slammed - the world will be seeing a lot more "Made in USA" labels on the products they use. And Americans won't be buying a lot of imports - because we won't be able to afford them. |
| Posted by: Zhang Fei 2008-10-02 16:21 |
| #18 Take a walk through any dealer's lot and read the stickers. they display country of origin information. ignoring the 'el stupido' added dealer markup sticker it makes for interesting reading. |
| Posted by: USN, Ret. 2008-10-02 16:09 |
| #17 Re: #16 -- It's not just that, Tom. The foreign car companies building plants in the US and employing Americans are doing so in states where they can avoid the unions. That's an anchor around the necks of GM, Ford, et al, that has been contributing to that sinking feeling for decades now. |
| Posted by: Dar 2008-10-02 15:50 |
| #16 I just thought it a little ironic, that US companies, Ford, Dodge, and Chevy use foreign/cheap labor of Canada & Mexico (non-USA jobs) and Japanese Toyota supports jobs in USA. |
| Posted by: Tom- Pa 2008-10-02 15:40 |
| #15 2003 Honda CRV. Made in Alabama. One of the reasons I bought it. |
| Posted by: tu3031 2008-10-02 15:24 |
| #14 Somewhat. Consumers Report had a write up within the last couple years. Lots of 'American' vehicles made in Mexico and Canada [which the unions lobbied to be classified as 'American'] and lots of 'Japanese' vehicles are made in the United States. Not all inclusive but a good selection. After the threat of caps for imports during the last real big down turn in the late Carter years, the Japanese planned ahead and established domestic production plants to get around the 'Protect Detroit' mafia. |
| Posted by: Procopius2k 2008-10-02 15:21 |
| #13 Tom - lots of rice burners have plants in the US - Nissan has a plant in Canton, MS and Honda has one in Marysville, OH for example. My newest car is a 1998 - but my fav is my 1990 Volvo 740 with 285,000 miles. Been paid off for 15 years. I have no idea what a car payment feels like. |
| Posted by: GORT 2008-10-02 15:16 |
| #12 Hey there NASCAR fans, is it true that the Ford, Chevy, and Dodges are assembled in Mexico and Canada? I think only the Toyotas are assembled in USA..(Alabama) I think I heard there was some $$$ put in the bailout plan for a new NASCAR Track somewhere. Can anyone here confirm?? |
| Posted by: Tom- Pa 2008-10-02 14:59 |
| #11 my 93 Accord is @ 311K+ and heading to 400k. had planned to buy Spousal Unit new ride next spring; think that is on hold now. |
| Posted by: USN, Ret. 2008-10-02 13:55 |
| #10 Don't forget the unions, there Woozle, a bunch of morons trying to strangle the goose that laid the golden egg. They might have finally succeeded. I got fed up a long, long time ago being a slave to a car. When I was 17 it was a big thrill to get behind the wheel of my dad's Pontiac. But it's no fun anymore especially when I'm stuck in traffic with all the other slaves. |
| Posted by: Ebbang Uluque6305 2008-10-02 12:54 |
| #9 Much better, Alan. |
| Posted by: Barbara Skolaut 2008-10-02 12:43 |
| #8 Damn, I'm getting to feel that I'm carrying the whole damn economy by myself. I just finished paying for my youngest's college degree, paid for with savings and income; not a dime of loans. My house is 95% paid off and all three cars are 100% paid off. AND my total credit card debt is less than 1 months salary. Wonder what shape the economy would be in if everyone took my approach? |
| Posted by: AlanC 2008-10-02 12:31 |
| #7 Average Americans haven't been able to actually "afford" purchasing a new vehicle since the late 80's. It's all extended payments since then. First 3 yr., 4 yr., 5 yr., 6 yr., etc. That's the problem. They've been borrowing from future sales for a while now. They are now starting to pay the piper. All of them - not just Detroit. |
| Posted by: Zhang Fei 2008-10-02 11:57 |
| #6 This is a surprise to whom ? Average Americans haven't been able to actually "afford" purchasing a new vehicle since the late 80's. It's all extended payments since then. First 3 yr., 4 yr., 5 yr., 6 yr., etc. They are just using the vehicles while paying rent. With financing cut off, no new vehicles will be moving anywhere, except to auctions. "Marked-to-market", if you will. All these huge auto dealers will be going belly up. Largest GM dealer in US, Bill Hirt Chevrolet just did the dive. Look for many more. Auto makers had the right business model in the 50's. One of each model on display, for customer examination. And each manufacturer had maybe 3 or 4 model lines, not 25. You went in, bargained, struck a deal, and waited with great anticipation for your vehicle to be built and delivered. This was sound business. Didn't have 600 vehicles sitting around, didn't have 30 useless assholes posing as salesmen waiting to pounce on you. This worked very well. So what did the shitasses do ? Went the Asian way. Lots of vehicles. Take what's available. Can't know the actual sales price. Can't deal with one guy, gotta get thru about 4 layers, by which time you're so pissed you don't want the damn car. All F'd up. Bunch of A-holes and deserve the contraction they're in for. |
| Posted by: Woozle Elmeter 2700 2008-10-02 11:41 |
| #5 A well-maintained, paid off older vehicle will be appreciated vs a new one with a car payment during times like this. Used car dealers are hurting as well. You can't afford to buy a new used car if your finances are hurting. Remember - California's unemployment rate is 7.7%, despite having a huge buffer of illegal immigrants who get laid off first. |
| Posted by: Zhang Fei 2008-10-02 11:02 |
| #4 I wouldn't put too much money into repairs or upkeep. Obama's Euro-Carbon tax will eliminate those wasteful old dinosaurs in your garage, along with harmful emmissions from firearms. |
| Posted by: Besoeker 2008-10-02 08:39 |
| #3 It's also model year end. Unless you're buying to use and hold for a long time, it's a waste to drive something off the lot that depreciates immediately 25% and then the next month another 25%. Annual new car purchase is fashion, not practical and when people start seriously looking at expenses, fashion gets put on hold. |
| Posted by: Procopius2k 2008-10-02 07:19 |
| #2 A well-maintained, paid off older vehicle will be appreciated vs a new one with a car payment during times like this. |
| Posted by: no mo uro 2008-10-02 06:08 |
| #1 Apparently auto sales (and prices) have been falling all year. When the price of gas doubles, there isn't nearly as much money available for new car payments. |
| Posted by: trailing wife 2008-10-02 05:55 |