Current Vehicle Sales
Doom, Gloom or Boom?
Back to "The Bell Curve" | << Previous blog "Bob's First 100 Days" | Next blog "Think Before You Buy" >>
Way too many words already have been spent on the recent nasty news from July's auto sales results. The Wall Street Journal put it this way: "General Motors Corp. sales fell 22%, while Ford Motor Co. sales dropped by 19% and Chrysler Group suffered an 8.4% decline. The downdraft in demand wasn't limited to Detroit's beleaguered giants. Sales declined 7% at both Toyota Motor Corp. and Honda Motor Co. But Toyota managed to outsell Ford, while Honda outsold Chrysler Group."
OK...so it was a tough month. But should anyone be surprised? If you own a home, you know that its value has leaked out in recent months. Noticed that those "For Sale" signs in your neighborhood are staying up a bit longer? And if you rent, has your landlord offered to reduce your rent or at least hold it steady? Nope. Just 18 months ago, my friends in the mortgage business were bragging on how busy they were and how much money they were making. Today? There is a hollow and scared look in their eyes. And remember how hard it was to get that handyman to return your calls to discuss replacing your fence? Today, he might be calling you.
So the economic scene has changed recently (some might say towards a healthy correction), but the auto business will continue to evolve. It will make no sense to future generations of buyers that we paid so much attention to "Import vs. Domestic" or "The New Big Three" issues in the first part this decade. The U.S. market is aiming directly for a condition already entrenched in Europe--seven or eight strong brands all scratching and clawing for each and every one-half point of market share. Only the strong will survive, and you can bet that Ford, Chrysler, Chevrolet and the others will be there--though not until they shrink their goals and become profitable as much smaller companies. Painful? Yes. But inevitable.
Posted on 2007-08-06 | Permalink | 
| 
Back to "The Bell Curve" | << Previous blog "Bob's First 100 Days" | Next blog "Think Before You Buy" >>
