Auto Industry Update: Bad News / Good News
Man and you thought that light vehicle sales in the U.S. were bad in October when they came in down 31.9%...November's sales appear as though they will be even worse. The official industry prognosticators have not issued the final tally for the month yet, but it looks like auto sales in the U.S. were down in the order of 35% last month. Yikes.
Sales at the company which I have called the worst of breed in the industry for years, Chrysler, fell an astounding 47% year-over-year.
Here are the percent declines for a number of other major brands:
General Motors (GM): down 41%
Ford (F): down 31.5%
Honda (HMC): down 32%
Toyota (TM): down 34%
Volkswagen (VLKAY.PK): down 19%
Nissan (NSANY): down 42%
That's the bad news. Here's the good news: Nissan Motor Sells $600 Million in Auto Loan Bonds. Nissan was actually able to securitize $600 million worth of auto loans. This is the first auto loan securitization that I have seen in ages. This may be a sign of the credit crunch slowly starting to ease.
I haven't had an opportunity to take a close look at the reorganization plans that the "Big 3" laid out before Congress today, but I plan on doing so in the near future.