Wednesday, November 02, 2005

Black October for US Auto...

From the NY Times: Big Drop in October for Detroit


October, which is the start of the new model year, used to be a month for the auto industry to celebrate. This year, it was a month for Detroit to forget.

In the midst of a terrible 2005, the new model year has not served to help US Auto get back on its feet. The losses just keep on coming.


General Motors and Ford were hurt the most, with G.M. sales dropping 25.6 percent compared with October 2004 and Ford sales down 26.1 percent.
....
Car sales, though down at G.M. and Ford, increased at Chrysler, which has enjoyed success with models like the big 300C and which had strong sales to fleet customers like rental car companies. Amid that strength, Chrysler's overall decline in October sales was only 3.1 percent.

The only thing that has saved the domestic auto companies has been the steep employee discounts offered over the summer. It doesn't look as if those will be coming back for the holiday season...and it doesn't look like they have many other ideas to compete again either.

It's going to be a long haul to get US Auto back to where it formerly was in the domestic market - if it can ever get there again. Absolute lack of vision and long-term planning for inevitably higher gas prices has been much more damaging than would have been believed not too many years ago.

See some previous posts on US Auto:
More shakeups in US Auto...
The China Syndrome...
GM pushing Union on healthcare cuts...
Toyota chief fears GM, Ford demise...

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