Tuesday, January 05, 2010

So, How Are Those Investments in GM and Chrysler Turning Out?

Not so good. 10.4 million cars and light trucks were sold in the US market in 2009, the lowest level in 27 years.

Chrysler says December sales down 4 percent | Reuters Unit sales were down 36 percent compared to 2008, with December's numbers down 4 percent over last year. Just to put this in perspective, it was the first time since 1962 that Chrysler sold fewer than 1 million vehicles.

GM didn't do much better. December a Mixed Month for Auto Sales - NYTimes.com GM sales were down 6 percent in December and 20 percent for the full year.

Auto sales end '09 on upswing, Ford surges | Reuters Ford had a good December, with sales 33 percent higher than the same month in 2008. Year over year they were down 15 percent. All without a bailout.

Toyota sales were down 20 percent for the full year, but they still ended up selling more vehicles than GM to become the top-selling brand for the first time.

On a monthly basis, the foreign manufactures look pretty good.
Nearly all foreign automakers said their United States sales increased last month when compared with December 2008. Sales were up 44 percent at Kia, 41 percent at Hyundai, 32 percent at Toyota, 18 percent at Nissan and 16 percent at Volkswagen.
Hyundai sales up 8.3 percent in the full year over 2008. That is amazing given the way the US market shrank in 2009. Globally, Hyundai passed Ford to be the 4th largest automaker.

2009 Kia Motors America sales were up 10 Percent year over year.

I have always said the government shouldn't try to pick winners and losers in the market. Now it looks like they can't. We were told we had to give to give away all that money - billions - to keep those people employed. So how long do we have to do that? How about a transition plan? They either make in the real world (GM lost money the year BEFORE the recession started) or they go under.

So how long are we going to continue giving money to GM and Chrysler? Probably for too damn long.

I resent the fact that I was forced - through government bailouts - to become a stockholder in these two hopeless enterprises. I wouldn't buy their stock on the open market, but I ended up with a share of the problem anyway.

And I still won't buy a vehicle from Government Motors.

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