Sales of vehicles from the new General Motors Co. fell more than 20% in August, compared to the same time last year. Of course, a lot has changed in that year. Customers were flocking away from car dealers at the end of last summer as the recession tightened its grip, consumers tightened their wallets, and car sales and associated activities were in the toilet.
Fast forward a year later: GM recently exited bankruptcy as the "new GM" while having jettisoned quite a bit of the baggage that helped push it over the edge earlier this year. GM is still digging itself out of a hole, and the just-completed "Cash for Clunkers" U.S. government subsidy helped it not have a 40% decline year-over-year compared to August 2008.
Not to be unexpected, Ford Motor Co. (NYSE: F) actually gained 17% in sales over August of last year, due in large part to the Clunkers rebate program as well. Ford did not enter bankruptcy, did not take government aid at all, but still lost its short in the last few quarters as it continued retooling under CEO Alan Mulally.
Ford even announced it would increase output based on heightened demand, and then GM said the same thing after seeing a sales surge due to the Clunkers program. Is that wise now that the program has ended and it still has 379,000 vehicles in existing inventory?
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Reader Comments (Page 1 of 1)
9-02-2009 @ 11:38AM
George said...
GM is ramping up production? How are they going to sell them? Maybe instead of GM brand names they should label them Jap-Crap and Rice Burners, then they'll sell like hotcakes.
9-02-2009 @ 12:34PM
Igor said...
Great response, dumbass.
9-02-2009 @ 12:40PM
R Lynn said...
Ah, they still don't get it. Those DOPES in charge of GM are still making poor decisions. Don't make cars that people want (just ruin, then eliminate Pontiac); stop making the Grand Prix and Monte Carlo; "redesign" the Camaro and waste a whole lot of money for sales to only a select few customers; stop making the Supercharged V6 and design everything look like everything else (Malibu, Traverse, Equinox) while you try to sell the "Clown Car" HHR and various other duplicate vehicles like all of the GMC line. Heaven's no, we couldn't eliminate GMC, even though they are just like a Chevy...and we can't eliminate the Buick (you have to think of China), and we can't eliminate the Cadillac (I guess they sell a lot of them) because some people just couldn't lower themselves to own a Chevy. I guess the sales figures will continue the downward spiral.
9-19-2009 @ 9:17PM
ann.wrinkle said...
Maybe others like me don't like a UAW owned (55%) car
company.