June Declared Auto Industry Dead Zone

Frank Williams
by Frank Williams
june declared auto industry dead zone

Analysts are predicting auto sales in June will drop below 13m units for the first time since 1992. The Detroit News reports the shift from trucks to fuel-efficient cars is hitting the truck-heavy Big 2.8 the hardest (ya think?). Ford market analyst George Pipas provided the auto industry understatement of the year: "Unfortunately, the consumer demand for [trucks and SUVs] is very low." Equally disturbing, "The inventory for products which are in high demand is very low." Even the transplants are feeling the pinch; their production can't keep up with demand for fuel efficient cars from buyers willing to all but give away their gas-guzzlers. What happened to those pre-May prognostications from the D2.8 that the sun will come out in September? *crickets chirping* Meanwhile, even as American automakers struggle to shut off truck production, they still don't have desirable small cars and hybrids anywhere near the production end of the pipeline. It's 1973 all over again.

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  • 50merc 50merc on Jun 19, 2008

    edgett: "If there were anyone in Washington who was truly intersted in “national security”, they would be all over the economic impact of high oil prices and the trickle-down effect on the world economy. The war we should be waging is on our own government." Gee, edgett, do you really think the bloody overthrow of our government is justified by $4 gas? It's still cheaper here than most anywhere else. John Horner: "[Carter] pushed through tax credits for solar hot water heaters which set off a boom in that field until Reagan shut it down. Carter also pushed for synthetic fuel development, higher fuel economy requirements for new cars, etc. etc.. .. It isn’t like subsequent administrations did anything better or even equal to what Carter tried to do." I was doing tax work back then and I remember well how people rushed to install storm windows and add more insulation in the attic, the cost partly offset by tax savings. One client got a solar water heater. It cost thousands and it was prone to leaking, so I doubt he came out ahead. But it's true that there was a better response to the second oil price shock than to the first. Carter's greatest failing was not understanding that Iran had commenced an undeclared war on America and western civilization. (Even now he can't admit that, but of course neither do many others of his ilk.) Apart from a few helicopters that crashed in a sand storm, he could not bring himself to deal forcefully with Islamofascists. We are still paying for that mistake. Carter was the butt of jokes for his cardigan sweater, but the real problem was the hair shirt he donned and has worn ever since.

  • Under_the_Bus Under_the_Bus on Jun 19, 2008

    "Bring out your dead"

  • Edgett Edgett on Jun 19, 2008

    50 Merc: Gee, edgett, do you really think the bloody overthrow of our government is justified by $4 gas? It’s still cheaper here than most anywhere else. Actually you hit the nail on the head. Not because gasoline is $4.30 a gallon, but because we the people have allowed a group of cheat and liars to manipulate us into creating a new upper class as clueless as the English House of Lords. This bunch is no less villanous than those from whom we decleared independence (for good reason) 230 years ago. And the price of gas has little to do with what I am advocating. It is symptomatic of those who would pretend to protect our "national security" and in fact do the opposite whilst lining their own pockets well for their efforts. So, thanks 50merc, for your succinct analysis of my post. I happen to believe that Jefferson understood a great deal about the human condition, and intrinsically understood that tyranny grows when the populace is reduced to quibbling over the price of tea. The American revolution had little to do with the price of tea, but fortunately for those of us who live here, there were some who saw this as endemic to the behavior of thugs. They did something about it then, and I think we need to do something about it today.

  • Rtz Rtz on Jun 19, 2008

    Local Kaw dealer reports all 2008 250 Ninja's are sold out. Waiting list for `09 models has 9 people on it.