Obama Motors
- Thread starter delldude
- Start date
he U.S. auto market continued its slow crawl out of the recession in
December as more consumers bought cars, but shoppers' enthusiasm
remained well below pre-crisis days.
In December, the annualized rate of auto sales in the United States
climbed to 11.2 million, according to Edmunds.com. That's up from 9.1
million at the nadir earlier last year but far from the halcyon days
when auto sales ran over 16 million annually.
"The recession shook the foundations of consumer confidence," said Ken
Czubay, Ford's vice president of U.S. sales and marketing.
"Everything is improving, but the recovery is really slow," said Jessica
Caldwell, senior analyst at Edmunds.com. "It's not even growth, really
-- it's more like stabilization." While nearly every major automaker is
struggling in the United States, General Motors and Chrysler, the two
U.S. automakers bailed out with billions of dollars in government funds,
remain particularly troubled.
Chrysler's December sales fell to 86,523, down 4 percent from December
2008, according to Autodata. Sales were down 36 percent for the full
year.
General Motors, which is now largely owned by the U.S. government, saw
sales drop to 207,538 in December, a 6 percent decrease. Its sales were
down 30 percent in 2009, compared with 2008.
Susan Docherty, GM's vice president of U.S. sales, attributed the sales
drop to a reduction in fleet sales, a drop in spending for consumer
incentives, and the decision to close the Pontiac and Saturn brands.
One bright spot for the U.S. industry was Ford, which experienced a drop
in annual sales but outperformed December 2008's sales by 33 percent
last month.
The economy's recessionary plunge put the auto industry under intense
pressure in 2009, one of the most transformative years ever for the
industry.
After the bailouts of GM and Chrysler, the government initiated a $3
billion "cash for clunkers" program to revive sales with
government-backed rebates; eventually, 700,000 cars were traded in under
the program.
As the U.S. market collapsed, meanwhile, China's surged, and it has
begun to rival the United States as the largest auto market.
Many in the industry see the wreckage as pure catastrophe. But some
environmentalists think the drop in the market reflects not just
economic forces but changing consumer tastes.
Lester Brown, founder and president of the Earth Policy Institute,
projects that there were more cars scrapped last year in the United
States than sold.
"America's century-old love affair with the automobile may be coming to
an end," he said.
"That's pretty preposterous," said John DeCicco, a University of
Michigan lecturer and former senior fellow at the Environmental Defense
Fund. "We're far from that."
December as more consumers bought cars, but shoppers' enthusiasm
remained well below pre-crisis days.
In December, the annualized rate of auto sales in the United States
climbed to 11.2 million, according to Edmunds.com. That's up from 9.1
million at the nadir earlier last year but far from the halcyon days
when auto sales ran over 16 million annually.
"The recession shook the foundations of consumer confidence," said Ken
Czubay, Ford's vice president of U.S. sales and marketing.
"Everything is improving, but the recovery is really slow," said Jessica
Caldwell, senior analyst at Edmunds.com. "It's not even growth, really
-- it's more like stabilization." While nearly every major automaker is
struggling in the United States, General Motors and Chrysler, the two
U.S. automakers bailed out with billions of dollars in government funds,
remain particularly troubled.
Chrysler's December sales fell to 86,523, down 4 percent from December
2008, according to Autodata. Sales were down 36 percent for the full
year.
General Motors, which is now largely owned by the U.S. government, saw
sales drop to 207,538 in December, a 6 percent decrease. Its sales were
down 30 percent in 2009, compared with 2008.
Susan Docherty, GM's vice president of U.S. sales, attributed the sales
drop to a reduction in fleet sales, a drop in spending for consumer
incentives, and the decision to close the Pontiac and Saturn brands.
One bright spot for the U.S. industry was Ford, which experienced a drop
in annual sales but outperformed December 2008's sales by 33 percent
last month.
The economy's recessionary plunge put the auto industry under intense
pressure in 2009, one of the most transformative years ever for the
industry.
After the bailouts of GM and Chrysler, the government initiated a $3
billion "cash for clunkers" program to revive sales with
government-backed rebates; eventually, 700,000 cars were traded in under
the program.
As the U.S. market collapsed, meanwhile, China's surged, and it has
begun to rival the United States as the largest auto market.
Many in the industry see the wreckage as pure catastrophe. But some
environmentalists think the drop in the market reflects not just
economic forces but changing consumer tastes.
Lester Brown, founder and president of the Earth Policy Institute,
projects that there were more cars scrapped last year in the United
States than sold.
"America's century-old love affair with the automobile may be coming to
an end," he said.
"That's pretty preposterous," said John DeCicco, a University of
Michigan lecturer and former senior fellow at the Environmental Defense
Fund. "We're far from that."
