When the "cash for clunkers" program ended, the auto industry was cast adrift and sales fell off dramatically in September.
Here are the numbers:
- Ford Motor Company (NYSE F) fared best with sales down only 5%.
- General Motors and Chrysler's sales were down 45%.
- Overall sales were down 23%.
- On an annualized basis sales dropped to 9.2 million vehicles.
- Sales for the three major Japanese auto makers fell from 7 to 20%.
- The only big winner was Hyundai with sales up 27% in September.
Both GM and Chrysler are restructuring their companies. The key question is: can the two make money with sales at these depressed levels?
Morningstar analyst David Whiston said that the auto industry would face continued uncertainty in the months ahead. "With no customer stimulus, you have a weak consumer who is reluctant to make big ticket purchases unless they have to. . . . It's not just a Detroit problem."
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