Quote: Shares of GM fell ahead of the sales announcements. They briefly fell as low as $10.57 during Monday’s session, the lowest level since Sept. 22, 1954, before recovering, according to the Center for Research in Security Prices at the University of Chicago.
In May, Toyota sold just 9,340 fewer vehicles than GM and grabbed 18.4 percent of the U.S. market compared with GM’s 19.1 percent. As recently as 2005, GM controlled 26 percent of the U.S. market to Toyota’s 13 percent.
Quote: Buyers flee SUVs and pickups and also shun Ford's cars and crossovers as automakers face worst month for U.S. sales since '92.
By comparison, sales of Ford's key F-Series pickup tumbled by more than 26,000 vehicles in June. The F-Series was, up until last month, the nation's best-selling vehicle.
Last month Ford announced it would delay the roll-out of the new version of the F-Series.
Quote: Jim Cramer wrote late last week in The Street, "I rack my brain trying to figure out how they can raise enough money to not run out of money." The most reasonable option, he argues, is to "abrogate everything, put the company in receivership," and "let it be recapitalized by Cerberus in a Chrysler merger." GM in bankruptcy may be a startling thought, but Cramer argues, "This is a $6 billion company that owes too much and can't pay with big residential losses we can't even fathom. We don't want it to cease to exist. So I think this course of action is the rational, smart thing to do."
"Indeed," Barron's reports that late last week, "some funds designed for individual investors are selling at about 50 cents on the dollar-almost as if GM were headed for bankruptcy."
I dunno. Not good news, but not a surprise either. The Big 3 have almost been on a death watch for many a year. Will they go under....I don't think so, for example GM with 19 % of the market is almost selling 1 out of every 5 cars sold, but still I remember the days when GM sold about 1 out every second car sold.
Re-structure, probably, eventually, cut products, probably. I can see Buick going next in GM's line. BTW, I bought a new 2007 Buick sedan a year ago, but look at there line. Two sedans, one they say is a mid size, the LaCrosse/Allure, but in reality is just an inch here, inch there smaller than their former 'large car, the LeSabre, then they have the Lucerne, which is just a couple of inches here, an inch there, bigger than the LaCrosse. Both big V6 powered or with optional V8's Enough of a real difference, especially with only 2 bigger cars in a small car market ?
Then the big SUV/CUV..I'm not sure what it is anymore the Buick Enclave.
Three vehicles ....don't know what the sales figures are, but I doubt if there very high.
BTW, I like my Buick sedan, but even I realize it's not the car of the future, nor is the Lucerne, nor is the Enclave. The average age of a Buick buyer is around 68....I'm a young 'un, but boy talk about your market dying off.
Even mighty Toyota is not immume to high fuel prices: http://www.reuters.com/article/idUSN0127435320080701?virtualBrandChannel=10216
Seems the only guy who is picking up sales is Honda, which is known for well built, thrifty cars. When we visited the Honda showroom this weekend looking at their Odessey, the place was very busy with buyers. Can't wait for their diesel Civics and Accords to become available.
Capt Skup
AD-1(AW)USN Ret.
Wonderful Wife, 3 beautiful Daughters
"Never get in a battle of wits with an unarmed man"
Automotive News reported last week that used Civics at auction were fetching more $$$ than new Civics...in some cases, $1,000 more.
The entire auto industry is poised for a huge shift as consumer tastes in the US align more closely with the rest of the world (due to high fuel prices), and the escalating costs of raw materials puts upward pressure on MSRPs.
The cost of a new car is going to increase, by quite a lot, in the next few months to a year.
BTW - Toyota's profits from last year alone was more than GM's entire market cap.
Capt Skup wrote: Even mighty Toyota is not immume to high fuel prices
Yes, and they also do not always do the right thing pertaining to fuel economy issues, regardless of what some people here think. The previous generation Scion xB, 1.5 automatic, was rated at 26 city 31 highway using the new updated EPA measurement standard. The current generation Scion xB is longer, wider, heavier, has a 2.4 liter engine, and is rated at 22 city 28 highway. But Toyota can do no wrong, so I'm sure there will be plenty of great explanations for this.
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