US Car Sales Plummett following Cash For Clunkers

[BTOWN_HUSTLA]

No shocker really. remember what I said about creating artificial demand? the longevity and awareness of fuel-efficient cars has lasted shorter than I would have even predicted (2 months)

http://www.ft.com/cms/s/0/2d134318-aecb-11de-96d7-00144feabdc0.html?ftcamp=rss&nclick_check=1

US car and light truck sales came close to plumbing new 2009 lows in September, with weak consumer demand exacerbated by the expiry of cash-for-clunkers scrappage incentives and unusually low inventories of some popular models.

The heaviest casualties were General Motors and Chrysler, the two Detroit carmakers that restructured under bankruptcy-court supervision earlier this year.

GM’s sales dived by 45 per cent from September 2008, which was an unusually strong month, and by more than a third from August. Chrysler was down 42 per cent.

Toyota reported a 13 per cent drop, while Ford Motor’s sales shrank by a more modest 5 per cent, sustaining its recent market-share gains.

With the expiry of cash-for-clunkers, the popularity of the smallest, most fuel-efficient cars has slipped.

 

[PapaG]

Well, look on the bright side! The government destroyed 700k or so cars that could have been on the used car market!

 

[andalusian]

You are right that the demand is soft - because everyone that wanted one pretty much got it when the big incentives were offered - but making the leap from that to the idea that awareness of fuel efficient cars disappeared makes not sense - this is a leap of logic that just does not make sense. Since the incentives did not help the gas-guzzlers - it is not a surprise that their percentage during the C4C was down. The real success of the awareness can not be calculated immediately - only within a year or two...

 

[BTOWN_HUSTLA]

the total savings in global warming from the clunkers were cancelled out by the Obama's trip to Copenhagen to pitch for the olympics!

huzzah!

 

[BTOWN_HUSTLA]

You are right that the demand is soft - because everyone that wanted one pretty much got it when the big incentives were offered - but making the leap from that to the idea that awareness of fuel efficient cars disappeared makes not sense - this is a leap of logic that just does not make sense. Since the incentives did not help the gas-guzzlers - it is not a surprise that their percentage during the C4C was down. The real success of the awareness can not be calculated immediately - only within a year or two...

...when no one remembers this program. like I stated, fuel efficiency awareness is caused by the price in fuel, not because the government gives a one-time unsustainable subsidy on it.

 

[andalusian]

Detailed look at the numbers actually looks pretty encouraging. Other than the C4C months - this is the largest number of companies that increased their sales compared to a year before for quite some time:

http://www.autoblog.com/2009/10/01/by-the-numbers-september-2009-post-c4c-were-all-alright-edi/

Here it is, the first full month of sales after the government's popular Cash for Clunkers has ended. The expected result – that auto sales would plummet once the feds stopped handing out free money in exchange for clunkers – didn't exactly happen. Nine brands posted positive sales in September versus the same period in 2008 with another three posting single-digit losses.

Of course, there were automakers that dropped right back into the cellar, including General Motors (-44.98 percent) and Chrysler LLC (-42.06 percent). General Motors, however, is in the process of shrinking, shedding brands and dealers left and right, so its sub-par performance will be par for the course for a while. Chrysler LLC, however, apparently just can't compete with its dated products.

 

[BrianFromWA]

GM has themselves to blame. I wanted to buy a truck this weekend, but GMAC was being stingy on their financing. I was even willing to put a decent amount of cash down, but they said no.

Screw them. (And yes, I was just going to upgrade from an 07 to an 09 and add a few options.)

 

[PapaG]

GM has themselves to blame. I wanted to buy a truck this weekend, but GMAC was being stingy on their financing. I was even willing to put a decent amount of cash down, but they said no.

Screw them. (And yes, I was just going to upgrade from an 07 to an 09 and add a few options.)

I'm guessing GMAC is still waiting to recover C4C cash. From what I've read, dealerships are very low on financing bankroll due to a slow recovery of C4C money as well as lower movement on the used car side due to destroying the clunkers. I'm guessing you would get a great deal on cash-only in this environment.

 

[The_Lillard_King]

Car sales plummett following the end of a gov't program . . . anyone surprised by this?????

 

[blazerboy30]

Car sales plummett following the end of a gov't program . . . anyone surprised by this?????

You mean the government can't just decide which markets to artificially create, and then have a sustainable market? Get outta here!!

 

[Eastoff]

the total savings in global warming from the clunkers were cancelled out by the Obama's trip to Copenhagen to pitch for the olympics!

huzzah!

math please

 

[BTOWN_HUSTLA]

1 + 1 = 2!

 

[bodyman5001]

I don't want to talk about cash for clunkers anymore after hearing some of the cars that morons gave up to participate in this program. I don't want to get into it but some of them were great cars. Gone forever thanks to some kenyan and his buddies.

 

[TradeNurkicNow]

WHAT WILL WE DO WITHOUT THOSE CARS

HOLY BUTTFUCKING SHITCHRIST WHAT WILL WE DO WITHOUT MORE FUCKING CARS?!?!?!

god.

 

[bodyman5001]

WHAT WILL WE DO WITHOUT THOSE CARS

HOLY BUTTFUCKING SHITCHRIST WHAT WILL WE DO WITHOUT MORE FUCKING CARS?!?!?!

god.

Yeah, they made more cars because of this bullshit. Next time someone designates a building as a historic building why don't you go burn it down?

I am talking about cars that people probably only put 2000 miles a year on, they must have been left wing nutjobs to turn in a 87 GNX buick for this shit.

I am still happy overall as this means more new cars with insurance for me to fix, I feel bad for the independent repair shops that will lose out on fixing these older cars. Oh well, sux for them.

 

[maxiep]

WHAT WILL WE DO WITHOUT THOSE CARS

HOLY BUTTFUCKING SHITCHRIST WHAT WILL WE DO WITHOUT MORE FUCKING CARS?!?!?!

god.

Well, those cars destroyed has driven up the price of all used autos. Who buys used autos? Poor people. CFC stuck it to those people who need the most help.