Wow...Auto sales TANKED

User Forum Topic
Submitted by GoUSC on August 1, 2007 - 11:13am

Wow...that is pretty a pretty noticable drop. And the big news is that even TOYOTA tanked.

Not really surprising to us Piggington's though.

http://biz.yahoo.com/ap/070801/auto_sale...

Submitted by lindismith on August 1, 2007 - 12:45pm.

No, no surprise. Interesting that the industry is already dialed into the mortgage mess. From the same article:

"You've got a consumer right now that's really being stretched," Merkle said. "In many cases debt levels are incredibly high to the point where you're seeing a lot of foreclosures."

It's not just going to be big-ticket items. It's going to be everything.

Where's that thread about the tipping point? I think whoever started it was dead on.

Submitted by bsrsharma on August 1, 2007 - 1:01pm.

A couple of inflexion points in Auto sales. Toyota is now #2 in US and probably will be #1 in the world this year.

Overall imports beat US automakers for the first time (50.2% market share). Higher gas prices, more housing pain will probably push this higher - creating mini vicious cycle for Detroit.

Submitted by GoUSC on August 1, 2007 - 2:19pm.

My step-dad works in the auto industry in Socal (California Automobile Dealers Association). Couple tidbits of info I received lately:

The business is soooo bad. The longest slow period in the last 20 years. For example...Toyota dealerships who used to sell 600--700 per month..are now selling less then half.
For example....one American brand dealer at Redlands Auto Center sold 43 new cars in July normally approx. 120.

Submitted by bsrsharma on August 1, 2007 - 2:43pm.

"The business is soooo bad. The longest slow period in the last 20 years"

If anyone wants a flashing red light about the coming recession, this is it.

Submitted by PerryChase on August 1, 2007 - 3:06pm.

Porsche has full page ads for the Cayman at $589/mo lease. The high end is not doing that good if they are doing incentives.

Boat sales are also down.
http://www.signonsandiego.com/news/busin...

Now, some have argued that the rich are immune so their housing communities are immune as well. I doubt very much that anything under $5 million is immune to the downturn.

Submitted by bsrsharma on August 1, 2007 - 3:16pm.

Future Porsche & boat customers bought too much RMBSs? Now they have to go on diet. Someboady has to suffer when all those BSC hedge funds collapse.

Submitted by cr on August 1, 2007 - 5:05pm.

ehhh, ehhhh, EHHHCHHOOOspillover effectsHHHOOOOOO!!!!!

Excuse me, Mr. Bernanke, can I borrow that tissue?

Submitted by CAwireman on August 1, 2007 - 6:19pm.

RAdelow, yes heard that today about auto sales. Agree,
surprising that the new #1 auto seller, Toyota, is also down.

Good to see Lindismith posting again. Haven't heard from you in a while.

Not being able to use home equity as an ATM is spilling over. Hmmmm.

HiggyBaby

(Formerly known as cawireman)

Submitted by sdrealtor on August 1, 2007 - 10:16pm.

A good friend of mine is a design engineer for one of the major automakers. The Cayman has been a sales disaster from Day 1. Discounts on it say nothing about the economy and everything about a lousy design.

Submitted by CharlieG on August 2, 2007 - 5:17am.

Beyond the normal economic canary-in-the-coalmine vehicle sales indicator, the auto industry is having to come to terms with the frenzied vehicle upsizing scheme they have been working on for the past 15 years.

Nothing says "chump" quite like a temporary paper license plate on an newly purchased SUV these days, and the industry has done a darn good job convincing people that a truck is the only legitimate vehicle for just about any purpose.

Result? Well, no one wants to buy a new truck, and no one quite wants to downsize from a truck...not until their neighbors do anyway. So they are sticking with whatever they have...and dealing with the fuel payment as such.

Submitted by Coronita on August 2, 2007 - 6:50am.

Porsche has full page ads for the Cayman at $589/mo lease. The high end is not doing that good if they are doing incentives. Boat sales are also down. http://www.signonsandiego.com/news/busin... Now, some have argued that the rich are immune so their housing communities are immune as well. I doubt very much that anything under $5 million is immune to the downturn.

 

The irony to this is how many americans lease a car they can't normally afford....When I hear about so and so "bought" a high end car, I chuckle because a lot of them are leases.  Nothing wrong with leasing if you get a nice tax writeoff because of your biz. But folks that I've seen lease because they can't afford.  Oh well.

Submitted by Trojan4Life on August 2, 2007 - 8:14am.

I've always liked the Cayman

As a guy who just got rid of his 2004 Corvette for a Prius, I respected the Cayman's capabilities and loved it's exhaust note. But it's stuck in bewteen the two big guns in the Porsche line up, the 911 and the Boxster, so I think if someone is going to step up from the Boxster it will be to the 911 as the price difference between the 911 and Cayman is not too steep.

FWIW, I bought the Prius not because of carpool lane access (missed the boat on that one) or to help the environment (nice side effect though). I bought it to keep my hard earned $$$$ out of Exxon's coffers.

Freddie, Proud USC Trojan

Submitted by GoUSC on August 2, 2007 - 8:29am.

Freddie,

I put 100% pure biodiesel in truck...also to keep my money out of Exxon's coffers.

Fellow USC Trojan, Radelow

FIGHTON

Submitted by GoUSC on August 2, 2007 - 8:29am.

Freddie,

I put 100% pure biodiesel in truck...also to keep my money out of Exxon's coffers.

Fellow USC Trojan, Radelow

FIGHTON

Submitted by Trojan4Life on August 2, 2007 - 1:05pm.

Check out this month's Car and Driver magazine. There is a very interesting article on a gentleman in Illinois who was being told by either state or federal officials he had to register as a fuel distributor and pay taxes on the fuel he was using (bio diesel). Absolutely incredible the nerve of our government to ask us to cut our dependance on foreign oil and in the same breathe try to tax us for doing it!

Freddie, Proud USC Trojan

Submitted by lindismith on August 2, 2007 - 2:18pm.

I've heard of that in CA too. Unreal! Completely un-American too! I have a couple of friends running on bio-diesel, and I think the state needs to take a hike.

I hope someone sues. What happened to our freedom? Apparently we're only free if we continue to make purchases from Big Oil.

Submitted by JWM in SD on August 2, 2007 - 4:26pm.

Precisely. Credit Contraction and Deflation do not Discriminate between classes.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.