Thursday, October 1, 2009

Consumers Continue Snubbing Government Motors and Chrysler

In July, I observed that, in the first month after GM and Chrysler emerged from bankruptcy and became owned by the Obama government and his union friends, consumers snubbed their noses at GM and Chrysler and purchased more Ford automobiles.

Then the government threw $2 billion (or was it more? -- I can't keep up with all the government's 'largesse' these days) at Cash for Clunkers, distorting automobile markets and skewing comparative sales figures.

Now, the first post-Cash-for-Clunkers reporting period the numbers again show GM and Chrysler continuing their slide and Ford holding its own -- somewhat. Here's the report, from Bloomberg:

September sales at GM, the largest U.S. automaker, slid 47 percent on an adjusted basis, worse than the 44 percent decline projected by 6 analysts. Ford, the second-largest U.S. automaker, fell 8.9 percent on an adjusted basis, worse than the 5 percent average of 6 analysts’ estimates. The decline on that basis was 44 percent for Auburn Hills, Michigan-based Chrysler, matching the average of 5 estimates.

Nissan’s adjusted decrease was 11 percent, compared with 2 analysts’ estimates of 7.1 percent, and Honda’s was 23 percent, worse than the estimates of 13 percent. Toyota’s adjusted decline was 16 percent, while analysts projected 13 percent.

So government- and union-owned GM and Chrysler sales slid 47 and 44 percent respectively, versus an 8.9 slide for Ford (the non-government/union owned car maker).

It's a development worthy of watching. Sadly. Are Americans skeptical of the government and unions' ability to produce quality cars? Looks that way now. We'll see.

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