Bailout Watch 320: All Eyes Turn to "The One"

The post-apocalyptic analysis of December’s sales results continues, as pundits and producers attempt to make sense of the crater that’s replaced the U.S. new car market. Obviously, the situation will have the greatest impact on the Chrysler and GM. The domestic automakers have just finished their first suckle on Uncle Sugar’s taxpayer teat, with GM auguring-in for its second go mid-month. And both companies face a congressional grilling when they return for more money in March. So, what to do? What to do? For answers to that question, for the manufacturers’ spin, we turn to their unofficial mouthpiece, The Detroit News. “Auto sales skid: Recovery rests on stimulus” starts with good news! “After barely making it through the worst year for auto sales since 1992, Detroit’s Big Three expect consumer demand to remain very weak in the first half of 2009 but begin to recover in the second half.” I’d like to point out that a general “sales” recovery does not necessarily mean Chrysler or GM’s recovery. But that would kind of ruin the flow, if you know what I mean. To wit…

“Auto executives on Monday said they were pinning their hopes on President-elect Barack Obama’s plan to introduce a massive stimulus package to revive the flagging economy and encourage consumers to start spending.”

Meanwhile, how’s GM doing with that grieving process? Not so well…

“‘We have a lot of challenges out there with the economy,’ said Mike DiGiovanni, GM’s executive director of global market analysis. ‘We are in a recession.’ But, he added, ‘we are optimistic as the Obama administration comes in given that it’s the first new administration in eight years and is likely to be a honeymoon period. There is going to be lot of excitement generated across the country because of the change. People like that.'”

So, do they believe this shit? It’s just spin, right?

“Looking at 2009, Mark LaNeve, GM’s vice president of sales for North America, said: ‘We’re optimistic that it’ll be a year that’ll gradually improve.’

The automaker expects to benefit from the launch next year of six important models, including the Buick LaCrosse sedan, the new Camaro and a new Chevrolet Equinox crossover.”

LaNeve. I mean, he has to say stuff like that, right? Nope.

“But [Ed: note the but] Japan’s automakers also are finding themselves in unfamiliar territory in this downturn. With the recent drop in gas prices, demand for their small cars has fallen along with truck sales. Toyota and Honda Motor Co. have cut production and said they are now losing money.

‘We have no illusions about the coming year,’ [Toyota NA Prez Jim] Lentz said. ‘It may get worse before it gets better.'”