A great American crash

Even the Japanese are taking big hits:

General Motors' October U.S. sales plunged 45 percent and Ford's dropped 30 percent, as low consumer confidence and tight credit combined to scare customers away from showrooms.

The results released Monday — along with a 23 percent drop at Toyota and a 25 percent decline at Honda — are strong indications that sales for the industry as a whole may perhaps be the worst in 25 years.

Detroit-based General Motors Corp. said its light trucks sales tumbled 51 percent compared with the same month last year, while demand for passenger cars fell 34 percent.

The results were less severe at Ford Motor Co., which said its Ford, Lincoln and Mercury car sales were off 27 percent, while light truck sales for the three brands were down more than 30 percent.

Overall, GM sold 168,719 vehicles, down from 307,408 in the same month last year, while Ford, including its Volvo brand, sold 132,278 light vehicles last month down from 189,515 in the same month last year.

Mike DiGiovanni, GM's executive director of global market and industry analysis, said the credit crisis and financial market turmoil are affecting the industry to a "frightening" level.

If GM's sales were adjusted for population growth, October would be the worst month of the post-World War II era, he said.

"Clearly we're in a very dire situation," he said...

As the begging continues, Obama being the great hope:

General Motors Corp. merger talks with Chrysler LLC may intensify this week as the companies wait to see whether the U.S. will provide financial aid to help complete the deal, people familiar with the matter said.

GM and Chrysler LLC owner Cerberus Capital Management LP still support the combination, and discussions haven't stalled during government negotiations, said the people, who asked not to be identified because the negotiations are private.

GM and Chrysler, pressing for an agreement as a slumping economy and a freeze on auto loans push industry sales toward a 15-year low, don't expect to make significant progress on government aid until after the U.S. election, the people said. Combining the companies would require $10 billion to $12 billion in additional cash to mesh operations, Citigroup Global Markets Inc.'s Itay Michaeli said in a note to investors on Oct. 20.

Financing and a union agreement remain the two biggest hurdles for the merger, people familiar with the talks said. The United Auto Workers union has hired former GM adviser and Morgan Stanley auto analyst Stephen Girsky to assist the union in the talks with GM, Girsky confirmed in an e-mail.

[...]

Government loan guarantees might help stabilize the companies, Barack Obama, the Democratic presidential nominee, said in an interview last week on NBC's ``Nightly News With Brian Williams.'' Obama leads Republican Senator John McCain by almost 7 percentage points in the Real Clear Politics average of national polls.

Obama said he would meet with the chiefs of GM, Chrysler, Ford Motor Co. and the United Auto Workers union to develop a plan for an industry overhaul should he win the election, according to a transcript released by NBC...

Especially after this:

U.S. Rejects G.M.’s Call for Help in a Merger

How long will the Canadian market hold up, what with Ontario now being a have-not province?

[...]

Toyota Canada surpassed its 2007 record sales performance in October.

Sales of Toyota and Lexus cars and trucks hit 15,843 over the past month — up 9.4 per cent from October 2007 — for a year-to-date total of 201,614. That surpasses 2007's record-setting 201,326 vehicles sold, with two months still to go in the year.

Honda Canada reported a one per cent increase over last October in its combined Honda and Acura divisions. It reported October sales of 10,293 Hondas, up two per cent from last year, while its Acura division reported sales of 1,162 units, down seven per cent from last year.

Chrysler Canada saw a 1.5 per cent increase in sales, with 15,643 light vehicles sold in October compared with 15,411 sold during the same month last year.

Ford Canada's numbers were in negative territory, dropping to 15,123 from 16,863 for a decrease of 10.3 per cent.

More here.

Mark C.

Posted by markc at November 3, 2008 06:29 PM