WSJ: Ford auto sales plunge 31% GM sales sink 32%, Chrysler’s 35%

MSNBC.Com / Wall Street Journal ^ | 11/02/2002 | Wall Street Journal

[Bobby777]

Vehicle sales plunge in October

Big 3 automakers’ figures drop over 30 percent vs. last year

THE WALL STREET JOURNAL

DETROIT, Nov. 1 — Auto sales fell in October, despite stepped up interest-free financing and other discounts, amid tough comparisons with an unusually robust performance a year earlier.

[Bobby777]

check it out ... no big surprise ... but hey, those H1-B's will buy cars and ship them back to India and Pakistan, n'est pas? ...

[FormerLurker]

What these fools who think they run things fail to understand is that when people have no job, they don't have money to buy things...

[Bobby777]

and it hurts gov't tax revenues ... city, state and federal ... in a time when we're into deficit spending ... but it's all good ... [/sarcasm]... hey house sales are up ... they say so everyday ... wonder how these people are going to pay for these houses? ... my buddy just put one up a few blocks from me ... $400,000+ ... yowza ... I just hope he can survive the payments ...

[FormerLurker]

Many people are forced to live with their parents or in homeless shelters due to the unability to pay the rent. Those who live in $400,000+ houses will be the focus of those who have no place to live...

[Bobby777]

I know ... my buddy's new wife was teasing me with the guest room saying "this will be your room" ... LOL ... perhaps I could be the butler ... change my name to Jeeves ... 8)

[sarcasm]

A HREF="http://www.freep.com/money/business/sales2_20021102.htm">Notably, the sales dip occurred even though the average value of incentives this past month was about $1,860 per vehicle, higher than the $1,775 per-vehicle average in September. For the past year-plus, automakers had been able to prop sales up with higher and higher incentives.

The concern now is that consumer fears about the weakening economy, joblessness and a possible Iraq war may be too much for even no-interest loans or cash rebates to overcome.

[SSN558]

on another note GM is opening another foreign operation, $250 mil in south Korea. When all the high pay manufacturing jobs are finally shipped overseas to escape taxes and regulation, the U.S. companies will find that they have no U.S. customers that can afford to buy their products.

[Bobby777]

yep ... was checking out the new Mustangs ... wanted to see a Mach 1 but they weren't building yet ... the salesman, of course, as any good salesman would, told be I'd better jump on the 0% financing NOW ...

I told him it would be available most of 2003 ... he said "No way" ... I said "Yes way" ... otherwise they'll have to shut factories and layoff workers ... which now it looks like they'll have to do anyway ...

And Kia or Isuzu just introduced 0% for 6 years with 10 year 120,000 mile warranty ... egads ...

[M. Thatcher]

when people have no job

What are you talking about? Checked the unemployment numbers lattely?

[Bobby777]

When all the high pay manufacturing jobs are finally shipped overseas to escape taxes and regulation, the U.S. companies will find that they have no U.S. customers that can afford to buy their products.

I know ... and who will the politicians collect taxes from? ... we're going to be a huge welfare nation and dang quick ... 2003 ought to be interesting ... and 2004 ...

[FormerLurker]

What are you talking about? Checked the unemployment numbers lattely?

DO you believe everything you see on TV? Are YOU a software engineer?

[Bobby777]

Missouri Unemployment website two weeks ago reported 197,000 people looking for work and 14,900 jobs available through their office ... (on their intranet)

[sarcasm]

SHANGHAI -- will export engines from China for a sports-utility vehicle assembled in Canada by early 2004. It's the first time the carmaker is using a Chinese-made engine for a vehicle assembled in North America.
   The world's largest automaker said it will use 3.4 liter V-6 engines made in China with Shanghai Automotive Industry Corp. to power the Chevrolet Equinox. An undisclosed number of engines will be shipped to Ingersoll, Ontario, where General Motors will build the Equinox, the company said in a press release.
   "This is an example of how GM's global alliance and partnership strategy gives us the flexibility to leverage existing capacity at facilities like Shanghai GM for the benefit of car buyers in other parts of the world," said Philip Murtaugh, chairman for General Motors' operations in China.
   General Motors is the largest foreign investor in China's automotive industry, through its $1.5 billion investment in a 50:50 venture with Shanghai Auto, where it makes Buick and Sail passenger cars.
   The venture, called Shanghai GM, started making engines in 1998. It has the annual capacity of producing 180,000 V-6 engines, 75,000 L-4 engines and 100,000 automatic transmissions, according to General Motors' statement. The venture currently makes 2.5- liter and 3.0-liter V-6 engines for use in China.

[JasonC]

Um, did anybody actually click through and read the article? The headline is blatantly misleading. The "drop" is an increase from the rate of sales in September. It is only a "drop" compared to the Oct 2001 results, which were way above trend because they all rolled out their 0% financing offers that month. It is purely a matter of comparison to a one time inflated number a year ago, that did not repeat.

The rate of sales for the 3 combined in October was 830k per month, or a 10 million per year annual rate. GM also reported that their 4th quarter production would be up 9% over last year. Their October sales this year were 7% higher than the September rate.

[FormerLurker]

What a bunch of fools. The Chinese will simply take the plant and use it for their own needs, and GM will sink due to American's lack of money to BUY the damn things...

[Bobby777]

is October 2002 1/3 off of October 2001? ... that's what it sounded like to me ... if so, that's what I took from the article ...

[KneelBeforeZod]

ford has tons of plants all over the world. lots of them making cars for foreign markets only. weird ugly little cars. I wonder if GM is doing the same in this korean plant?

Honda Toyota and Mercedes have plants in the US now...this seems like a good thing overall, but then I thought, epsecially in the case of japan, why not use up our power/landfills/etc instead of their own on their little island... don't know if that had a part in their decision though.

[JasonC]

Yes. For example, for GM the sales in Oct 2001 were 575k units, a record, as they rolled out their 0% financing. In September of 2002, a month back, sales were a more normal 365k. In Oct 2002, the most recent month, they were 391k. So much lower than the record uptick month a year ago, but higher than in September. GM production in all of 4th quarter 2001 amounted to 1.29 million units. In 2002, they forecast 4th quarter production will be 1.4 million units.

The headline is based on the comparison to the year ago October records. What is misleading about the headline is it does not explain that month was a blip upward, not a higher plateau. E.g. Ford in October 2000 did 311k, in October 2001 they did 417k. It was the post 9-11 incentives (0% etc) for the new models that shifted sales into that month.

[DB]

Thanks for clarifying things, now I don't need to read the article with a BS headline.