This time last year some analysts were saying that a downturn in auto sales was around the corner. Well, it looks like those chaps were right on the money, as 2007 is projected to finish with 16 million sales, down one million units from 2005 totals. If a look at dealer orders is indicative of things to come, automakers are in for another tough year in 2008. One-third of dealers surveyed by Wachovia Capital Markets stated that they intend to cut back on new vehicle orders in 2008, which is up from 20 percent just a few months back. Automakers have been very careful with planned production volume for the next few months, and some have already cut shifts from assembly plants. Renault-Nissan CEO Carlos Ghosn thinks demand could shrink by another 500,000 units next year, which would put everybody in a tough spot. If the U.S. heads into a recession, the outlook could get even gloomier.
It seems as though almost every automaker is projecting global growth in the next few years, but with the way things are going in the world's largest automotive market, it looks like there will be a few executive boards in an uproar come '08.
[Source: Detroit News]
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Reader Comments (Page 1 of 1)
Rob @ Nov 26th 2007 7:59PM
1st!
Oh God... Oh God. I know I hate tjhat too, but I just couldn't resist.
May God damn me to driving Fords the rest of my life.
John @ Nov 26th 2007 10:12PM
this doesn't surprise me one bit, selling as many cars as this, it's only a matter of time before everyone has a car and doesn't need another.
I drive a Jeep from 1995 that has been the most dependable vehicle my family has ever had in our driveway, I don't need a new car and won't anytime soon, and many people are in the same boat, it was only a matter of time before sales inevitably fell.
RobZ4 @ Nov 26th 2007 10:19PM
The main reason for this is that the US economy is about to enter a recession period in 2008. Automotive sales are one of the 1st things affected by recession.
MikeW @ Nov 27th 2007 1:10AM
Recession, think depression.
Thanks a trillion federal reserve.
mark_welby @ Nov 27th 2007 8:28AM
Because of the ever rising gas prices, I recently sold a '99 Grand Cherokee and am now driving a '98 ZX2 with 155,000 miles on it (Poor me, eh?!). I'm hoping to drive this beater for another year or so then pick up something new, but with the way things are going with gas, ever rising utility bills and a recent raise that pretty much breaks even with the cost of living, who knows. This ZX2 might have to last me alot longer than I hoped...
Sandy @ Nov 27th 2007 11:25AM
The pricing of new cars has risen faster than the average person's income. Inflation is rampant in everything except for wages. Foreign goods are eating up American Corp. profits. Catch-22 syndrome. SAD what's happened in America.
I had many jobs in my long life. The hardest, and least fulfilling was indeed selling cars, one of the hardest jobs on earth, with the smallest compensation.
Thank God my parents had $$$.
Buyers all wannna buy at $100 over invoice. IF you don't sell it, someone else will. So, what do you think the salesperson makes? I can recall selling Lincolns & Mercures for $125. over dead dealer invoice and making $30. on the sale. This is a business ? Hookers make more.
Quit. Bought a lunchenette. Worked 1/2 the hours, made 4 x the $$
No sympathy here for buyers nor dealers, but yes for the manufacturers.