MarketWatch: Brutal sales drop on tap from automakers

[marmar]

Brutal sales drop on tap from automakers
Cars are still relatively hot as truck/SUV inventories mount
By Shawn Langlois, MarketWatch


SAN FRANCISCO (MarketWatch) -- Automakers next week are expected to hand in another dismal batch of monthly vehicle sales and provide still more evidence that Americans have lost their once-voracious appetite for big trucks and SUVs.

A sharp drop in sales is hardly surprising, given gasoline prices above $4 a gallon, weak job growth, and consumer confidence now bumping along at a 28-year low. See full story.

While the growing popularity of smaller cars like the Ford Focus and Chevy Malibu should provide a hint of good news in Tuesday's sales reports, carmakers' inability to keep pace with demand for their thriftier models coupled with a glut of unsold trucks sets the stage for some surprisingly stiff declines.

"This is going to be a tough month to write a sales release because there's usually some highlights to point out," George Pipas, Ford Motor Co.'s top sales analyst, said. "But this is shaping up to be a long, hot summer...the summer of discontent. We really don't see it getting much better any time soon."

There aren't too many analysts out there who would argue.

Edmunds.com earlier this week slashed its outlook for the year to 14.9 million cars and trucks from its prior estimate of 15.5 million.

For June, the car-buying research Web site pegged vehicle sales to fall 16.7% from a year ago to 1.2 million units. That would be a 13.3% drop from last month's already lowly total.

Edmunds.com forecast that Chrysler -- the automaker most reliant on truck sales -- will take the hardest hit, down 31.2%. Ford and GM are both expected to post 25% declines. .....(more)

The complete piece is at: http://www.marketwatch.com/news/story/brutal-sales-drop-tap-automakers/story.aspx?guid=%7B4FB1353A%2D6F14%2D48F6%2D8D4C%2D02CA6B6A0B42%7D

[wuushew]

1. Misleading headline

Toyota suffered the least decline in sales for June.

[marmar]

2. That was the headline on the homepage....

n/t

[EV_Ares]

3. Brutal for the auto industry period especially Chrysler & GM, Ford Pickups, everyone man, eom.

[Rex]

4. Thank Scalia for this! He can't wait for us to forget.

While telling us to fuck off, like Darth Cheney.

[dkf]

5. Isn't there any way to convert these to something sellable?

[nevergiveup]

6. If we change the "National Pastime"

from baseball to the demolition derby then there will be a use for them.

[gratuitous]

7. I'm thinking raised bed gardens

Functional and practical at the same time. And you'll actually get something useful out of them that doesn't increase your carbon footprint.