Detroit (automakers) never learn...
GM and Ford see declines in sales
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JoeUser Forums
Yet again we see that Detroit just can't seem to learn -- or at least Ford and GM can't seem to learn.
Reports out today say that GM, and Ford posted big drops in sales in September. Even with the continuation of their popular (over the summer) 'employee pricing' plans, their sales were down significantly in September. As the following article snippet's point out, mostly because GM and Ford basically stole sales from the fall back in the summer, and then were left to face the music as the new year rolled around, and as increases in gas prices continued to seriously depress sales of SUVs, big trucks and other large vehicles, in favor of smaller, more efficient cars with good reputations (from companies like Toyota and Honda).
It seems from these article snippets below that we are seeing again that Detroit's automakers never seem to learn. When we should have been investing a lot more time, effort and money into building more fuel efficient vehicles, we were instead just making them bigger, more luxurious and more expensive. Screw gas mileage. Who cares that a Ford Excursion gobbles up gas like most liberals suck up tax money? Gas was plentiful, right?
In anycase, here are a few choice notes from the news article found at the linked headline. Please see original article for complete story.
GM, Ford post lower US sales
By Poornima Gupta
DETROIT (Reuters) - General Motors Corp. and Ford Motor Co. on Monday posted big declines in U.S. vehicle sales in September as employee pricing discount programs lost their allure and sales of traditional SUVs plunged on higher gasoline prices after hurricanes ravaged the U.S. Gulf Coast.
And U.S. automakers don't see sales getting any better this month as the generous summer deals pulled fall and winter customers into the market earlier.
"I expect October to be a bit rocky," Paul Ballew, GM's head of global market and industry analysis, said, adding that industry sales on a seasonally adjusted annual basis will be around 16.4 million vehicles in September.
By contrast, Asian rivals Toyota Motor Corp., Honda Motor Co. Ltd. and Nissan Motor Corp. posted double-digit gains, and Toyota said its third-quarter sales were the best-ever in the United States.
"Detroit has been trying to stimulate sales, basically pull sales from the future, by reducing prices while their competitors overseas have focused on producing better products," said Thomas Leritz, portfolio manager with Argent Capital Management in Clayton, Missouri. He doesn't own automaker stocks, but follows the industry closely.
"It's history repeating itself," he added. "You go back to the '70s, during those oil shocks the Japanese took market share."
... a bit more from the linked article...
SUV SALES HIT
...
Sales of large gas-guzzling SUVs for GM and Ford declined significantly last month as U.S. gasoline prices soared well over $3 a gallon in many parts of the country.
"There is legitimate pressure on some utility categories and I would describe those as the traditional truck-based utilities," GM's Ballew said.
SUV and truck sales at GM were off 30 percent. Sales of its large Chevrolet Suburban SUV were down nearly 57 percent.
Sales of traditional SUVs at Ford were off 51 percent compared with last September. Sales of Ford's large Expedition SUV fell 60 percent, while its mid-size Explorer was down 58 percent. Its F-Series pickup trucks were down 30 percent.
Edmunds.com's Toprak said he expected sales of large SUVs from U.S. automakers to fall further this year.
... more at linked article (please see original article for complete story)
So, as I had mentioned some time back, increasing gas prices could and most likely would (and have been) cutting sales of the gas guzzlers. I hope Detroit can figure out soon how to turn those big beasts into 40 - 60 MPG Hybrids, otherwise they are likely to continue to see their sales wilt.
Reports out today say that GM, and Ford posted big drops in sales in September. Even with the continuation of their popular (over the summer) 'employee pricing' plans, their sales were down significantly in September. As the following article snippet's point out, mostly because GM and Ford basically stole sales from the fall back in the summer, and then were left to face the music as the new year rolled around, and as increases in gas prices continued to seriously depress sales of SUVs, big trucks and other large vehicles, in favor of smaller, more efficient cars with good reputations (from companies like Toyota and Honda).
It seems from these article snippets below that we are seeing again that Detroit's automakers never seem to learn. When we should have been investing a lot more time, effort and money into building more fuel efficient vehicles, we were instead just making them bigger, more luxurious and more expensive. Screw gas mileage. Who cares that a Ford Excursion gobbles up gas like most liberals suck up tax money? Gas was plentiful, right?
In anycase, here are a few choice notes from the news article found at the linked headline. Please see original article for complete story.
GM, Ford post lower US sales
By Poornima Gupta
DETROIT (Reuters) - General Motors Corp. and Ford Motor Co. on Monday posted big declines in U.S. vehicle sales in September as employee pricing discount programs lost their allure and sales of traditional SUVs plunged on higher gasoline prices after hurricanes ravaged the U.S. Gulf Coast.
And U.S. automakers don't see sales getting any better this month as the generous summer deals pulled fall and winter customers into the market earlier.
"I expect October to be a bit rocky," Paul Ballew, GM's head of global market and industry analysis, said, adding that industry sales on a seasonally adjusted annual basis will be around 16.4 million vehicles in September.
By contrast, Asian rivals Toyota Motor Corp., Honda Motor Co. Ltd. and Nissan Motor Corp. posted double-digit gains, and Toyota said its third-quarter sales were the best-ever in the United States.
"Detroit has been trying to stimulate sales, basically pull sales from the future, by reducing prices while their competitors overseas have focused on producing better products," said Thomas Leritz, portfolio manager with Argent Capital Management in Clayton, Missouri. He doesn't own automaker stocks, but follows the industry closely.
"It's history repeating itself," he added. "You go back to the '70s, during those oil shocks the Japanese took market share."
... a bit more from the linked article...
SUV SALES HIT
...
Sales of large gas-guzzling SUVs for GM and Ford declined significantly last month as U.S. gasoline prices soared well over $3 a gallon in many parts of the country.
"There is legitimate pressure on some utility categories and I would describe those as the traditional truck-based utilities," GM's Ballew said.
SUV and truck sales at GM were off 30 percent. Sales of its large Chevrolet Suburban SUV were down nearly 57 percent.
Sales of traditional SUVs at Ford were off 51 percent compared with last September. Sales of Ford's large Expedition SUV fell 60 percent, while its mid-size Explorer was down 58 percent. Its F-Series pickup trucks were down 30 percent.
Edmunds.com's Toprak said he expected sales of large SUVs from U.S. automakers to fall further this year.
... more at linked article (please see original article for complete story)
So, as I had mentioned some time back, increasing gas prices could and most likely would (and have been) cutting sales of the gas guzzlers. I hope Detroit can figure out soon how to turn those big beasts into 40 - 60 MPG Hybrids, otherwise they are likely to continue to see their sales wilt.
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