Despite an uptick in consumer confidence, Big 3 auto dealers are reporting that October sales are even worse than
September’s.
A
survey released today by Investor’s Business Daily and Technometrica Market Intelligence showed consumer confidence
in October rising off September’s record low. However, the survey shows that consumers are still worried about rising
interest rates and high gasoline prices.
“Worried” would seem to be an understatement, judging by an Automotive News
survey of Ford, GM and Chrysler
group dealers, who unanimously reported that the first two weeks of October have been the slowest they’ve experienced
in years – worse than September.
It appears that the summer’s discount pricing plans moved sales from the fall into summer, rather than attracting new
buyers, and dealers are now seeing the result. According to one dealer interviewed for the survey, the Big 3 put all
their marketing into the discount pricing message instead of promoting the brands and the products, and now they’re
paying the price.