Auto Sales Down but Not Out

October 2008 auto sales were really weak.

But, notice that in the month of financial crisis, when doom and gloom reigned supreme, we sold cars at the (seasonally adjusted) annual rate of 10.56 million units. Now that's down about two-thirds from the old average, but it's not nearly as bad as we might have expected. Rumors suggested that retail sales last month consisted of one tube of toothpaste and two rolls of toilet paper. Not true.

The recession is no cake walk, but the most pessimistic views don't make sense. Some people are still spending. The economy is not going to zero.

Comments

[axelrod608:]

Let's see.... US manufacturers sell about 99% of their production in the US. Nobody else in the world wants our gas guzzlers.

Unemployment is growing rapidly, especially among those who make enough to buy a new car. Fuel costs are a substantially greater portion of the family budget. Where exactly is the good news ??

Sure, GM & Ford have divisions in other countries that will survive. But domestic production is all drowning in personnel costs that are absolutely unsustainable.

RIP US auto industry.

2008 Nov 04 01:45 PM

[notsosmart:]

how & why is it they cant build a car that gives good mileage & comes with a100,000 mi 10 yr guarantee on motor & powertrain with proper service.they dont have the confidence in their own products.shame.

2008 Nov 04 03:49 PM