Positive Auto Sales even after Cash for Clunkers
Filed under: Autos | By: Peter Chubb
Posted on: October 2, 2009 | 4 Comments
The first full month auto sales are in, one month after the end of the governments Cash for Clunkers scheme or CARS. The auto industry had expected sales to fall dramatically, but that fall to their surprise did not happen. Nine auto brands said that their September sales were more positive compared to the same period last year.
Autoblog reports that there were a few automakers that still posted poor sales, these were Chrysler LLC and General Motors, dropping -42.06 percent and -44.98 percent respectively. GM is still in the process of streamlining its business, so its poor sales figures are still expected for some time.
The most popular brands come from the Koreans; Hyundai saw an increase of 27.24, Kia, 24.39 percent and Subaru just 0.70 percent. Ford did something that most other American automakers could not, and that was to report just a minor drop in sales, down 5.08 percent.
Other car makers posting smaller falls in profit than expected were Toyota with a 12.65 percent, Honda with a 20.07 percent decline and Nissan with a of 7.0 percent.
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Actually, the 45% drop in sales for GM compared to last September is VERY misleading. September provided GM with their highest monthly market share of the year, as they out performed Toyota, and even Ford in same month sales. I hate the last year over this year comparisons because it is so misleading. I haven’t read one report anywhere that explains that last September GM was celebrating their 100 year anniversary with employee pricing for all and zero interest, artificially increasing their market share for the month by over 30%. Nope, that’s not considered, as everyone reports on a 45% drop making consumer feel like GM is tanking. The opposite is actually happening, with higher retail share, and excellent launches of high quality desirable vehicles over the last few year.
It’s unfortunate that the US car makers, which cash for clunkers was supposed to help, are suffering the biggest “hangover”. The ill effects of c4c are still being felt by used car dealers, auto repair shops and car donation charities.
Although Toyota expected a higher drop in profit, I think a 12.65 percent is still high, for a such a good automaker as them.
As the latest release of car sales in USA suggests, the current unsustainable oil price topped the gas-powered mobility, on that score, but for “a newcomer” , this fragile recovery world-wide stands more likely to face another great depression.
Recently, vice chairperson of marketing Bob Lutz indicated that nearly 50,000 consumers have registered at GM’s website, indicating a “strong intention” to buy the plug-in hybrid vehicle,while Bob Kruse, GM’s top electric car exec and Chevy Volt pointman, steps down
The auto industry should not forget the bitter lesson from its bankruptcy. Automakers pledged change in direction before people and thereby barely received taxpayer’s cash, but they are still doing nothing. The current “unsustainable” fuel price, which is projected to go even higher, has gone far beyond a hybrid level again , which did not deter the recession.
The auto industry needs to leverage the rebates of cash for clunkers as a stepping stone for a fundamental change as promised, not business as usual. I still think the densely populated countries are consuming such incredible natural resources right now that inefficiency as it is can’t be allowed any more.
Thanks !