• Dec 15, 2006

The automotive industry isn't back on the upswing yet. 2007 may prove to be a nine-year low for sales at 16.2 million units, with Detroit automakers taking the biggest hit. CSM Worldwide, leading auto industry analysts, released a report recently indicating that U.S. light-vehicle sales would drop 1.2 percent from the 16.4 million units expected to leave dealer showrooms by the end of this year.

The leading reason -- surprise, surprise -- is that folks have bought their new cars already, or as CSM says, the industry has "depleted pent-up demand." Contributing to the problem is the soft housing market and vehicle devaluation, but efforts to eliminate incentives and raise the value of vehicles should help out. Despite efforts to raise the values of its vehicles, however, the situation poses major challenges for Ford and General Motors in their restructuring efforts.

Asian automakers, on the other hand, are poised to do well despite the market contraction, with Toyota actually gaining a full point of market share.

[Source: Automotive News]



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  • 20 Comments
      • 8 Years Ago
      guys guys, none of the current American automakers are going out of business. This is a normal business cycle. A company the size of Ford, GM or Chrysler cannot turn around on a dime. Yes, they missed the mark on the SUV thing, but remember for years, they could not make enough of them. The gas price increase, hurricane, and fed raising interest rates all hit suddenly and it takes years to develop new product and get it to the market.

      All of the wishing the demise of GM, Ford or Chrysler is just wishful thinking from some America bashers, it ain't gonna happen.

      In a couple years when there is record growth (hey, it's easy to post grrowth figures when you're comparing to the past two or three down years), the stock price will go up and the doomsdayers will be scratching their heads and complaining about the Big 2.5 making too much money. You see, these guys hate American cars, they hate American companies and are looking for any excuse to talk trash.

      'nuff said on the topic.
      • 8 Years Ago
      "Can you read? I was not interested in day trading, but in the performance of a long term, PENSION FUND< college fund or retirement fund."

      Well Prof, if you double your money on GM as I did in the last year you can then move the investment to an even higher return.

      Go Back to Stock Market School. You make money both short and long term. So much for being a math wizard as you sere last week.

      "I am not interested in playing these SILLY games., you missed my point COMPLETELY, you are just as bad and worse than the original poster, who "proived" his claim on ONE month of comparisons. This is three times worse than the proverbial focus on "QUARTERLY PROFITS", a recipe for disaster."

      Yo will also note Prof that I also included the last 6 years of performance. I also pointed out the market share myth. "Meaning they have been losing HUGE CHUNKS of MARKET SHARE YEAR AFTER YEAR, regardless of your CLUELESS "business cycle" comment."

      Go back to Reading School.

      "MICHIGAN is the ONLY ONE out of 50 states in the USA that has a recession and high unemployment right now."

      Bullshit, While Michigan has a 6.9% it's only only .2 points higher than SOUTH CAROLINA MISSISSIPPI. That in itself does not tell the entire story. After the holidays with the current housing slump nationwide you might just find that Michigan is not the highest % of unemployed. Go back to economics class.

      "AND in fact, if you do not foolishly measure it in "number of cars" but in $ of business sales, Toyota is ALREADY well above GM, ford and everybody else,"

      Well prof, wrong again. Measuring just in dollars proves nothing. Sell a vehicle for more dollars, the figure simply goes up. That is the most simplistic answer you can give. Sales dollars may not equate to profit dollars. That's a fools game. It's like saying last year I sold 1 mil in product this year 2 mil of course I doubled the price and lost 1/2 my market. Go back to business and economics class wearing the dunce hat.

      "Big 3 LOSERS" By the way prof, it's big 2, not 3 or even 2 1/2

      Sure... if you give it away to RENTAL FLEETS. Ever came across a HONDA rental?? LOL!!!

      The ole "Fleet myth" Yeah prof, I've come across a Honda rental, in fact we used to sell to Enterprise in the 1990's at the moment very few do in the US but if you happen to go to other countries.

      http://www.jamaicacarrentals.com/
      http://www.keralacars.com/hondacity.htm

      In Greece, Thailand,
      You can rent one direct from Shack-Findlay Honda in Henderson NV
      Fairbanks Alaska
      Egypt
      UK

      You really should get out more Professor.


      Fleet is legitimate business. Toyota is activly seeking fleet business and guess what? They will discount heavily also. Just go to their fleet site off their website.

      Go back to marketing class.

      "THIS SHows 100% how UTTERLY CLUELESS you are!!!!!!

      In its heyday, clueless idiot, GM was selling to a nation HALF THE SIZE of the USA today! (150 MILLIOIN vs 300 MILLION), and, what's MORE important, that population today has FAR MORE Income than THEN! EVEN ajdusted for inflation, idiot!

      IF things were the SAME, as you CLUELESSLY imply, WHISTLING IN THE DARK,

      GM should sell TWICE the cars today that it sold TZHEN,

      and, the eaSIEST WAY TO SEE I5T, IT SHOULD HAVE THE EXACT SAME MARKJET SHARE!!!!!!

      iNSTEAD, ITS MARKET SHARE WENT FROM ITS HEYDAY AT 50-55% TO TODAY'S DISMAL, LAME 25%-27%!!!!"

      Actually it shows how cluless you are, it's called CHOICE, more choices, different markets, different buyers. More spread in the market place. Go back to free market class. It also shows you can't type worth a shit. Go back to typing class. And-----I never said they could not do better.

      "GM APOLOGIST" Actually I drive imports, worked in the import dealership market for 27 years. The only two GM cars I have are a1960 restored Buick and original 1984 Caprice. My other three cars are imports, one would be a Porsche. I don't apologize for GM's performance, in fact if you had been around for a while I stated they should fire the existing management. However, patent bullshit that you throw,without ever posting facts or links, is just that emotional bullshit. A good % of profit for an American Corporation is around 10% on average, but many are less. Some of course more. Where they are at any given time has a number of factors involved. There are ups and downs, it's called business. GM is far from the only company dealing with losses.

      • 8 Years Ago
      Trust me, Mr. Misleading headline Man,

      2007 will sure NOT be a bad year for TOyota, and even not for HONDA.

      They will BREAK SALES RECORDS ONE MORE TIME, while the arrogant, incompetent Big 3 will keep churning out INFERIOR PRODUCT, and STILL not have a clue

      Why they have been losing HOME GAMES for 35 years straight to Honda and TOyota!
      • 8 Years Ago
      18. Porche -- What is your point?

      My points are painfully obvious, and I am suprised you do not see them.

      Obviously the Big 3 or 2 or 2.5 or, more accurately, the ONCE big whatevers, fail to see them either, and that is the reason of their demise.

      (whether they literally go bankrupt or not).

      I will resent if some clueless president after 2008 makes welfare queens at oour(the taxpayers and the car buyer's) expense of the Big 3

      The otherwise great Ronald Reagan did that with the unacceptable, protectionist, so-called "voluntary import quotas" when he twisted the arms of the Japanese to limit their impoorts to the USA to a number far less than the consumers, the US consu,ers., wanted.

      It made the Japanese car dealers and the japanese wealthy beyond any reason, and the poor consumers had to pay $2,000-$3,000 extra for a small car, ($5,000-$7,000 in today;s $),

      OR, as I did, buy a POS 5-speed 4-door 46 MPG Highway , 28 city Pontiac 2000, and get what little I paid for.

      Very basic transportation that had to be JUNKED at 11 yrs and only 65,000 gentle miles.
      • 8 Years Ago
      Too many people assume the miata is a better vehicle but shouldn't... http://www.youtube.com/watch?v=O_d5-K109DQ
      • 8 Years Ago
      Sorry, the above post was for the miata and solstice sales blog.
      • 8 Years Ago
      Whoa, Negative Nellie,
      Guess what. People are out there buying cars day in and day out. Maybe we need to find people that were going to buy a used car from a neighbor or who were going to nurse an old car through winter, but the buyers are out there.

      You see, unlike most other products, unless someone is too young or too old, almost everybody has a car. So, it is not a matter of 'if' they will buy one, but 'when.'

      My dealership is a Ford L-M, and Nissan dealership, and the people in my community love the products. Whether it is a big diesel truck to tow a horse trailer or work at the construction site, or a hybrid Escape to run around the ski resort, Ford makes some very useful products. Nissan Xterras are wildly popular around here, too.

      Look on the bright side. People are buying cars. They are buying them EVERY DAY.
      • 8 Years Ago
      Ha...Prof Porsche is a Reaganite. That explains it all.
      • 8 Years Ago
      to richard warren who gave all the facts about gm. i dont recall any profits in your financila analysis.
      Sure gm sells a lot of cars. They are giving them away with so many inflated incentives that the profits are just not there. A terrible way to run a business unless the business is at the cross roads. which i think the big 3 are at
      • 8 Years Ago
      #4 Your comment was so ridiculous that it even made me laugh... Professor, you'r not so far away from been ridiculous too.

      Sales might not be that good, but they will still sell a lot of cars. The question is: how much profit you can make on each product?
      • 8 Years Ago
      Yea, Yea, Yea, and the cow jumped over the moon, the dish ran away with the spoon, and the doomers and gloomers crapped in their bloomers.
      • 8 Years Ago

      Professor Porsche sure reminds me of big dumb Thor (aka voice of Sponge Bob's Patrick character) who was posting on here a bit ago. With typing like "TOyota" and "HOnda" he fat fingers the second letter as a cap all the time. And all the "yelling" he is doing by not using asterisks but instead over capitalizing.

      Anyway, he apparenty knows nothing about reality if he believes what he writes.

      Facts escape him for sure.

      You aren't doing a very good job without any facts what-so-ever big dumb Professor Thor Patrick Porsche.

      http://www.youtube.com/watch?v=WYCUxDHfgiY
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