Meanwhile, Car Sales Suck
As Marketwatch rightly points out, all this talk of United Auto Workers' contracts this, plug-in hybrids that, and Chinese expansion the other thing, doesn't have much impact on Detroit's current bottom line. Ahead of this Thursday's reports on October sales, the Dow Jones' diligent reporters have rounded-up the usual suspects. First up, Goldman Sachs analyst Robert Barry. To say Barry isn't bullish on the U.S. car market's immediate prospects would be like saying Eeyore needs Prozac. "With oil prices above $90, choppy stock markets, and renewed economic concerns, the selling environment remains poor for new light vehicle sales." Barry reckons ramped-up incentives on outgoing '07s are all that's propping-up U.S. sales. Once those wear-off… Barry's particularly sanguine about Ford Motor Co.; he's told his clients that The Blue Oval Boyz are heading for a 17 percent hit against their October sales numbers. Meanwhile, Deutsche Bank analyst Rod Lache doesn't like what he sees over at Chrysler; weak truck sales are likely to lead another double-digit decline. And Barry's warning that Chrysler's Last Big Thing, its new minivans, "may be off to a slow start."
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