The End is Nigh: Chrysler, GM Sales Tank
When contemplating the full horror of February's sales stats, the key metric to keep in mind is -6.3 percent. That number represent the overall decline in new car sales for the month, relative to '07. Automotive News [AN, sub] reports that Chrysler was the biggest loser in this declining market, registering a 14 percent February sales drop. Truck sales, upon which ChryCo's fortunes (or lack thereof) depend, sank 22 percent. The situation over at GM, is equally dire. Sales for the month dropped by 12.9 percent. Both automakers responded to the news with characteristic bravado/denial. GM Marketing Maven Mark LaNeve told analysts it's everybody's problem ("Toyota, Ford, all had a difficult month") and blamed the media ("I personally believe that this discussion of a recession hurts consumer confidence"). Chrysler's executive vice president of North American sales said the sun will come out tomorrow. While predicting double digit declines for every month for the rest of the year (!), Steven Landry said "We know there will be an upside. If it is March we want to be ready." Yes, well, if sales at GM and Chrysler continue to crater at this pace, both carmakers' cash conflagration will force them to file. It's simply a question of who'll file first.
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I wonder, how far into the corner they have to be pushed to start making quality interiors? do they really have to be pressed under a bailer. no bailout. Put under bailer.
Let 'em flop - and I do think having decent paying manufacturing jobs within the USA is important - but the establishment needs to go away. I mean that from the top level management whose perspective on the American consumer is completely detached from reality right down to the assembly line worker who thinks their high school diploma is worth more than $50 an hour - they all need to go away and be replaced with people who want to achieve, who aren't going to strangle the company with problems and fights over territory and who is allowed to do what. The imports seem to have their priorities generally in the right order. They have quality. They don't drive big vehicles and spit on the little ones. They will sell you a quality vehicle whatever the size. They don't refer to compact vehicles as "starter vehicles" or kids' vehicles. They seem to take the small vehicles as seriously as the large vehicles.
What a difference a year makes.