I little back-up - Ford's decline includes the the loss of Jaguar and
Land Rover (they were counted in the 2008 totals, not counted in
2009). This inflates Ford decrease by about 3%. If you just look at
Ford / Lincoln / Mercury sales, the decrease is about 39%.
Toyota did the worst of the Japanese companies with a 31.7% decline.
Not sure why the article spelled out the Ford and GM declines, and
then just said all the big Japanese companies declines by more than
27%. It seems like they should have highlighted them individually as
well (Honda down 27.9%, Nissan down 29.7%).
I thought all the US companies were trying to eliminate "no-profit"
fleet sales. It seems they were successful.
Honda stated last year that they were not concerned about competition from
Detroit, but were concerned about the Chinese.
Imagine the chinese market, 1.6B people, growing middle class at about 400M
starting to buy cars. One cannot help but to know China, while in it's
infacy as an automaker is going to grow up real fast. And yes, Chinese have
automakers we don't see on the sales charts yet. They will have volume and
costs in their favor. Once their market is saturated, they will eye exports
to the US and Canada.
I would say if a high cost north American automakers (any company) wants to
survive they had better get well run and profitable very fast or else they
will just be dead bugs caught in the wake. In the new economy, people are
not going to pay 25, 30, 35, 40+ for a middle class automobile. Try $15K.
Interesting you should mention the Chinese. I just saw a new article
stating that for January, the world largest car market was China, NOT
the US. And, GM actually does fairly well in China.....so maybe GM
should just shut down the US operation and become CM.....
That happens when you spend more than you earn as an economy. Part of this
whole excercise is to reduce this effect, and China does not need more USD
on deposit from trade, with over $1.5T in USD cash. Last year when China
cashed some of the cash they had to buy resource companies, it caused the
USD to drop.
While most people play up the costs of gasoline, much of it was due to the
Where do folks get the idea fleet sales are not profitable? Every
manufacture, including import brands, sells to fleets. The industry fleet
discount averages around $800 for all manufactures.
Plant shut downs makes sense as the reason for lost fleet sales. Fleets
buy early on in the model year, not at the end of the model year.
A sale is a sale, why would any manufacture NOT want to sell to a buyer that
buys in volume?
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