Auto Sales Declines Around the World

Staying on the topic of the Auto Industry, here is a look at the global decline in automobile sales:

click to enlarge

Graphic courtesy of the Economist

(From the Economist): "NO COUNTRY or company has been immune from the collapse in car sales. Figures released last week confirmed that the last half of 2008 saw the most savage contraction in demand for motor vehicles since the second world war. In America sales of cars and light trucks in December fell by 33.5% compared with a year ago, and in Spain they crashed by nearly half. Even in Brazil and China, where sales increased on an annual basis compared with 2007, saw sharp declines in the last quarter of 2008. Of the world's big carmakers, Chrysler is in the most trouble, thanks to poor products and a reliance on the American market, where its sales dropped by more than any other carmaker."

There isn't much you can say here as the image more or less speaks for itself, other than that it will be interesting to see what the global automotive industry looks like just three years from now let alone 5-10. Perhaps even more interesting will be the likely new partnerships and/or mergers between various manufacturers, and to see what effect that has on new cars in the future.

Not to mention the future for brands like Aston Martin, Land Rover and Jaguar, how will those brands fare now that they're longer part of Ford (F)? Will Tata (TTM) be able to manage a luxury car brand effectively? How will Aston Martin fare now that it's owned (more or less) by a private equity firm as opposed to a car company?

No matter what happens, the next 3-10 years are going to be very interesting indeed for the automotive industry.

Disclosure: at the time of publishing the author didn't own a position in any of the companies mentioned in this article; the ideas expressed are solely the opinions of the author and shouldn't be viewed as financial or investment advice.

Comments

[User 360104:]

Driving is for dinosaurs. It's very old school. The future has always been with public transit projects. Driving 2 tons vehicles the size of a bedroom has never been practical. What is wise about moving 2 tons to pick up a shirt or a book, and then moving 2 tons back home? Think of what it takes for every human to be moving 2 tons around everywhere they go for every transaction from major to minor. It is the activity of a lunatic.

Also, it makes people soft and pudgy, even the children. Ask yourself how does the addition of each new car benefit my children and my neighbors? How does each new car improve the health of my community? Let me know what you find out.

Feb 19 10:59 AM

[Thadeus Tho...:]

@ User 36014

----> "Also, it makes people soft and pudgy, even the children. Ask yourself how does the addition of each new car benefit my children and my neighbors? How does each new car improve the health of my community? Let me know what you find out." <-----

All of what you say is sadly very true. I don't expect transportation customs to change over night in our country. It does represent personal freedom and expression at a great cost however. I don't expect things will change very much or too quickly. The almost hedonistic desires of some people who want to drive lavish or performance oriented vehicles has become entrenched in our society. Marketing of all kinds has cast it's spell over many.
I wish GM would concentrate on some of the fuel efficient models it does have and develop practical low cost additions to their lineup. If they dressed up the interiors of a few cars as they did in the current Malibu , Saturn Aura, and even Aveo, I think that would be a start. GM has the Cobalt XFE with high mpg for a gasoline powered car. They have the new Cobalt replacement in the wings, but I hope to don't make it too pricey. Actually, a freshened up Cobalt wouldn't be bad, with some lighter interior choices and materials. They also have some new mini cars proposed [Korean offshoots from Daewoo? ]

But I agree. I live in an area where, for years, they have been trying to get a light rail transport system going between the capitol and other cities within 40 to 100 miles. The state has just proposed using some economic stimulus monies to get it going again. We will see.

Feb 19 01:02 PM

[speculari:]

The most attractive option in personal transport (apart from the bicycle) is a car like the Aptera! GM, Ford & Chrysler will not likely be the entities that will produce such a car - far too committed to the overweight leviathans that they "think" they must produce.
The Aptera, with it's solar roof panel is just a start - picture a few thousand Aptera's with their entire outer surface covered with a Nanosolar photovoltaic "skin" or, when parked, with a "parasol" of PV panels, that can also re-charge the battery & also "hook-up" to a grid. What do our cars occupy most of their time doing anyway? PARKING... PARKING... PARKING.....!!!!!

Feb 20 11:46 AM

[Mad Hedge F...:]

Japanese analysts were stunned when Toyota Motors (TM) announced that it expects to lose $3.8 billion in the current fiscal year, its first loss since 1950. The company is getting decimated by the strong yen, which raises the cost of production in Japan, while shrinking foreign earnings when brought back to Japan. Moody’s cut its rating of TM debt from AAA to AA+. The forecast was three times worse than one made only two months ago. The company expects sales to fall from 9.3 million cars in 2008 to only 7.2 million this year. Every assembly line in Japan has been shut down except one. Management does not expect sales to recover until year end, and that, I’m sure, is just a hopeful guess. This is a once in a lifetime opportunity to buy one of the world’s greatest companies on the cheap, down 60% from its 2008 high.

Feb 21 09:14 AM

[Inventer:]

The "Thinking" MUST be updated; to fit the Present "Times"....and....because of That, I expect TATA Motors to become [probably] the Largest/Most successful Auto Manufacturer in the World. Even if the NANO is just equal to the Yugo. [Many Yugo's in Canada] and, I enjoyed mine [with some reservations] here in Georgia, USA.

Mar 19 05:20 PM