I think the numbers speak for themselves. Vehicle sales volume continues to dive and, contrary to a handful of reports I read yesterday, I doubt we’re near bottom.
Consider the facts:
Chrysler LLC sales were down by 34.5% last month, compared with August 2007.
Ford Motor Co. sales were down by 28.6%, and General Motors Corp.’s were off by 20.3%.
Even Toyota Motors Corp. sales slid by 9.4%.
And luxury brands like Porsche AG and Aston Martin were down by 44.9% and by 18.6%, respectively.
Will sales figures slide further? Most definitely, yes.
Though confidence is improving, consumers are still shying away from large purchases like automobiles. Instead, they are working to keep their expenses in line as the economy struggles and their budgets take a hit.
As a consequence of the slowing of sales since the start of the year, manufacturers have built up inventories. Even incentives, from 0%-for-72 months to employee-pricing-for-all, are losing their luster.
Sure, some companies posted improvements in their July sales data, but July happened to be the worst sales month in 16 years.
We’re nowhere near out the woods yet, which means the automakers’ predicament is likely to get even more acute. The deeper the declines, the longer a recovery will take.
Tune in next month, as the saga continues….
