1. Home
  2. ⋐⋒⋐ Computer Numeric Control
  3. General Motors' sales fall 45%. wow.

General Motors' sales fall 45%. wow.

formatting link

Auto sales drop to dire level as GM's fall 45 pct.

By TOM KRISHER and BREE FOWLER =96 7 hours ago

formatting link
(AP) =97 U.S. auto sales dropped to their lowest level in more than 17 years last month as consumers frightened by Wall Street turmoil stayed away from showrooms, prompting some auto company executives to predict dire consequences if the market doesn't improve.

By the time all automakers reported their numbers Monday, sales had dropped 32 percent to just over 838,156 vehicles, the lowest monthly sales figure since January 1991, according to Autodata Corp. and Ward's AutoInfoBank.

"This is clearly a severe, severe recession for the U.S. automotive industry and something we really can't sustain," said Mike DiGiovanni, General Motors Corp.'s executive director of global market and industry analysis who said the government should speed up actions to thaw out frozen credit. "There really needs to be actions focused on the consumer and available credit."

GM's sales plunged 45 percent in October, the worst drop of any major automaker. Chrysler LLC, which is in talks to be acquired by GM as a way for both companies to survive in the current climate, saw a 35 percent decline. Ford Motor Co.'s sales dropped 30 percent.

Japanese companies weren't immune from the carnage, with Toyota Motor Corp. sales down 23 percent despite a zero-percent financing offer. Honda Motor Co.'s sales dropped 25 percent and Nissan Motor Co.' sales tumbled 33 percent.

Reply to
kurgan
Loading thread data ...

it might be interesting, perhaps more telling, to know what percentage of it's sales were fleet sales.

Reply to
raamman

--------------------- When addicts have their supply of crack, crank or horse cut off, they go into cold turkey withdrawal. This seems to be what is occurring here.

Much of the blame is placed on the industry floor of a minimum FICA credit score of 700. Note that 60% of the adult US population is above this cut-off.

It should be noted that a FICA score under 700 does not mean that the individual cannot buy a vehicle, but only that they cannot get normal industry financing for a *NEW* vehicle.

The automotive industry world wide and in the US has gross overcapacity, far in excess of the ability of the market to absorb on a rational/replacement basis, (estimated as the ability to build 2 vehicles for every on that can be sold) even as it continues to build additional manufacturing plants in the US and world wide.

When you are dealing with insane/manic people and institutions your options are limited, particularly if you don't want to go down the tubes with them. If the car companies were individuals they would have long ago been institutionalized as "representing a significant danger to themselves or others," and their assets placed in conservatorship.

Reply to
F. George McDuffee

PolyTech Forum website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.