Here We Go: Detroit About to Get Whacked by Slowing Economy

Robert Farago
by Robert Farago
here we go detroit about to get whacked by slowing economy

CSM Worldwide [via Automotive News, sub] is the bearer of bad tidings: the slowing new car market will force The Big 2.8 to cut even more production in the second quarter than the first. The auto forecasting firm says Chrysler will slash second-quarter production by 19.1 percent (compared to the same period last year). Ford will trim production by 16.3 percent. And GM production will drop 8.1 percent. Joe Langley, CSM senior market analyst for North American forecasts, sees an end to the pain for Ford and GM in the fourth quarter, with production edging ahead of year-ago levels. He doesn't see a Chrysler turnaround until 2009. Saying that, Langley attributes Ford's potential upturn to the debut of the MKS (Lincoln somethingorother) and Flex (xB on steroids) and ongoing sales of a TTAC Ten Worst finalist, the Ford Focus. And just in case you were thinking this is "a falling tide sinking all boats" deal, "the three biggest Japanese automakers expect to ride out a recession without serious pain. Toyota is expected to boost North American production 3.1 percent, Honda 1.9 percent and Nissan a whopping 11.0 percent."

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  • Umterp85 Umterp85 on Jan 28, 2008 the Flex being an XB on steroides a good thing or bad thing ?

  • Robert Farago Robert Farago on Jan 28, 2008
    umterp85 : Robert….is the Flex being an XB on steroides a good thing or bad thing ? Dude, you know I think this thing will be a hit. How many times do you want me to say it? Of course, Ford could find a way to screw it up, but... I think it will be a hit. Did I say I think it will be a hit? I think so. If not, I think it will be a hit.
  • Umterp85 Umterp85 on Jan 28, 2008

    Thanks for confirming your positive response to the Flex concept.....Dude ! Geez---I feel like I am in a Bud Light commercial.

  • Ricky Spanish Ricky Spanish on Jan 28, 2008

    Nissan is boosting production 11%? what are they going to sell? Their entire portfolio is littered with turds. Maybe Infiniti will make up for all of that?