After a month of spectacular sales numbers in August, it’s looking like the auto industry is headed for a very bad September:
When Congress gave away $3 billion for buyers to trade in their “clunkers” and buy new cars in August, lawmakers thrilled as buyers swamped showrooms to take advantage of the big discounts. “Cash for clunkers has captured the public’s attention . . . (it) has the possibility to truly jumpstart our economy,” said Rep. Candice Miller (R., Mich.). Other, more sober analysts, warned that the clunkers program was only stealing from future sales.
September sales are in, and sobriety can take a bow.
Edmunds.com reports that “September’s light-vehicle sales rate will fall to 8.8 million units . . . the lowest rate in nearly 28 years, tying the worst demand on record. After the cash-for-clunkers program boosted August sales to their first year-over-year increase since October 2007, demand has plunged. In at least the last 33 years, the U.S. seasonally adjusted annual rate has only dropped as low as 8.8 million units once — in December 1981 — with records stretching back to January 1976.”
“Many people regard February as the darkest month of the recession, but even then (sales were) higher, at 9.1 million units,” adds Edmunds.com statistician Zhenwei Zhou.
H/T: Coyote Blog
September 20th, 2009 at 2:39 pm
My I offer the following from this weeks Detroit News?
GM dealers clamor for more vehicles
Interest in new models may translate into higher sales; Ford, Chrysler demand up too
http://www.detnews.com/article/20090918/AUTO01/909180393/1148/auto01/GM+dealers+clamor+for+more+vehicles
September 20th, 2009 at 7:54 pm
The Detroit News joins the Washington Post as nothing more than another Federal Government propaganda arm. Lowball projections and then slap ourselves on the back saying how good we are!