US auto sales were TERRIBLE for all automakers in September 08

Yeah I just saw that on Autoblog too. Looks like a hard time for all auto makers.

 

in volume order

GM........-15.6%..ytd.....-17.8%

Toyota....-32.3% .........-10.4%

Ford.......-36.3% ..........-18.4%

Chrysler -32.8%..........-25.0%

Honda....-24.0%..........-1.1%

Nissan....-36.8%..........-3.4%

Hyundai..-26.4%..........-4.2%

VW.......-8.1%............-1.3%

BMW.....-25.7%..........-4.8%

Daimler...-8.4%............8.4%

Right now auto sales are tracking to be down about 67% in October. Anyone want to bet me again about gas prices?

 

Sure. I bet we don't see gas prices drop to $2.50 national average anytime during the remainder of 2008.

 

I'll bet you gas is $2.65 by the first of the year or I will again to use my toyota avatar. If it gets to $2.65 or less you use a hummer h1 for your avatar for two weeks.

 

Alright, I'll allow the extra $ .15.

 

U.S. Retail Gasoline Prices

And this is the barometer. You're on!

 

As far as gas prices, a severe global recession - like the one we're about to enter - will almost certainly cause oil/gas prices to drop. That doesn't help auto sales too much if folks are being laid off

Even though we haven't seen too much of an economic slowdown around here, it's almost impossible to sell a large SUV or pickup. Folks are very wisely watching their spending. I wouldn't be surprised if many more dealerships close their doors

Locally, there are rows of brand new unsold 2008 model pickups and SUV's that have been sitting since Spring.

 

Well, Malorn was finally right about gas prices. The US average is close enough to $2.65 that I will concede defeat.

However, don't expect me to run out and buy a GM gas guzzler or any other car - my company was shutdown on Oct 16, so I am now unemployed so I can't afford a car or anything else. In the short term, I will be able to pay the payment on the Prius and gas for it with my unemployment benefits.

 

Sorry to hear about that, dogfriend. What sort of business was it?

On the bright side, at least you have a snazzy new avatar.

Tom

 

I am not trying to be a smart nice person, but your car came 100% from Japan and probably most of your clothing and household goods were made in the far east and we all wonder what has happened to our economy. Good luck to you.

 

We built RF components used in communications. When I first started working at the company, we built all surface mount mixers, power splitters, etc. Near the end, we were building mostly low noise RF amplifiers. Most of those were used in base stations.

If you are implying that there is a direct link between the origin of my car and my company being shutdown by the corporate owners, then I would disagree. I am forbidden by NDA to discuss it, but there were other reasons for the demise of the company. It is true that many of our products were exported to other countries over the years, offsetting some of the imports. But our corporate owners own companies all over the globe and some of the components that we assembled and tested will now be assembled in other countries.

 

Of course not a direct correlation, but the trade policies of this country have finally caught up to us. There are some great export stories but as a whole there are far more import stories.

 

yeah, we'll see how many people "need" a full sized pickup now that things are tighter. Studies show that people in England were happier in the horrible recession of the 1970's than they were in the years leading up to our current mess. So perhaps it's not all bad. I would love to see consumerism die, but I won't hold my breath.

 

Well, now the dollar is pretty strong again so exports may suffer. What really needs to happen is China needs to stop keeping the yuan artificially week. I've no idea how that's done, but it sounds like it's contributed to things somewhat. It obviously helps keep their exports strong while at the same time protecting domestic industry from imports.

 

Tripp, perhaps you missed what happened to oil prices with a weak dollar ? Or the grumblings that had foreign governments on the cusp of reversing their US lending ?

Careful what you wish for.

 

I'm well aware of what a weak dollar does to oil prices (and imports in general). Is the yuan's artificially low value a good thing? I suppose it does help keep the price of oil in check. If it were considerably stronger I think that china would import a lot more oil (at least they wouldn't have to subsidize it, anyways). My question is, is China's management of the Yuan good for china, good for us, or both. I doubt the Chinese view it as bad for China, but is it really damaging the industrial base of the "industrialized nations"? If the currency were adjusted what impact would that have on the price of tea from china, so to speak? Would we start to see more manufacturing here because we'd be more competitive? That's what I'm getting at.

 

The subsidized yuan is terrible for the west. Does anyone ever wonder why countries go after specific industries and why the US does nothing to protect these same industries?

 

Welcome to the recession.

... Brad

 

Wait 'til you see the October numbers. It will be brutal.