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Auto Industry Update: Bad News / Good News

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December 02, 2008 – Comments (2) | RELATED TICKERS: GM , F , TM

 

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.

Deej

2 Comments – Post Your Own

#1) On December 02, 2008 at 11:30 PM, Option1307 (29.69) wrote:

The plans are simple and straightforward...

Big Three plans to:

1) Mainly use the money as a "backstop" in case tings get worse, so they aren't officially loans. (Ya right you won't blow it in the first mnoth)

2)Sell their private planes. (Completely a publicity stunt.)

3) Drive to the congressional hearings in a hybrid. (Another obvious publicity stunt.)

3) CEO's make $1/yr. (Except they didn't address bonuses, packages, etc)

4)Become profitable in 2011. (hahahahaha, funny.)

 

Whats truely amazing is that even though the Big 3 cannot run a car company successfully, they sure know how to BS and make it seem like they know what the hell they are talking about. They are simply pandering to the public with all their stunts, there is very little meat in their proposal, just publicity stunts.. It's ridiculous but I bet it works.

Thats basically their plan. As you can see, it's really well thought out and not the least bit full of crap. Ya right. I'm all for letting them fail; however, I feel that these plans contain just enough BS for Congress to pass them and ok the money. Sad day...

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#2) On May 17, 2010 at 8:41 PM, BrandonPaulChevy (< 20) wrote:

Well, this is nothing new. I guess what this car companies should do is to make upgrades on their cars like putting a digital Power Window Switch or anything that would attract buyers.

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