Auto Sales screwed up everywhere
A slew of bad news is hitting the world auto markets. Three of the biggest markets – Japan, Europe and USA are simultaneously hit with problems.
Source: BusinessWeek
1. United States
Associated Press reports:
U.S. auto sales in February to hover near historic lows…General Motors’ sales tumbled 53 percent from a year earlier, while Ford’s U.S. sales fell 48 percent and Chrysler’s dropped 44 percent…Things are so bad that GM, which marked its worst February sales since 1967, is considering a program to let buyers keep their cars for a time without making payments if they lose their jobs…Industrywide, the average incentive per vehicle last month rose 8 percent from January to $2,914 per vehicle sold, Edmunds said. Incentives climbed to an average of 20 percent of the sticker price of a new car, and they topped more than $10,000 on some vehicles…The latest sales slide casts further doubt on the financial viability of GM and Chrysler. They need to sell cars and generate critical cash to supplement the $17.4 billion in government loans that are keeping them in business.
2. Japan
It’s not just US. The crisis is so spread that Toyoto is tapping into Japanese government’s emergency money. Trade is Significantly down across the world:
In Japan’s case, while many companies are flush with cash, the government said Tuesday it would dip into $1 trillion worth of foreign currency reserves to lend dollars to Toyota, Sony and other struggling exporters, a sign of how deeply the credit crisis has started to affect even the biggest businesses.
The carmaker said its wholly owned subsidiary Toyota Financial Services was requesting money that would help it make more loans to customers in the United States.
Source: New york times
3. Europe
BusinessWeek reports
Europe’s auto sector may be facing the toughest times it has ever seen, and it’s taking plenty of towns and cities down with it. Rüsselsheim, Germany, site of Opel’s largest factory, wasn’t exactly vibrant even before the crisis. The city of 60,000 on the banks of the Main River, 20 miles west of Frankfurt, has seen job cuts for years. In a kebab restaurant near a factory entrance, one laid-off worker is nursing a 9 a.m. beer. Down the street, the Eis Café San Marco is trying to woo customers by offering half-price on drinks and snacks. "We just have to pray Opel won’t close," says Giuseppe Basile, the café’s Italian-born manager.
