Here are the January 2009 results (source articles - Detroit Free Press, Associated Press; December 2008 results on the right are from this USA Today report [scroll to bottom left at article]):
General Motors - Down 48.9%- Ford - Down 40.3%
- Chrysler - Down 54.8%
- Toyota - Down 31.7%
- Honda - Down 27.9%
- Nissan - Down 29.7%
- Relatively minor players Subaru and Hyundai posted gains (that's right) of 8% and 14%, respectively.
What follows are three reader-catching headlines you won't see:
- Bailed-out companies underperform the rest in January
Story Continues Below Ad ↓As you see above, everyone but Chrysler was bunched fairly close in mutual misery in December. That changed radically in January. GM plummeted to a near Chrysler-like performance, while Ford's drop from December was about half as much.
Gee, you don't think it might be that a significant percentage of US car buyers, who also double as taxpayers, might be refusing to buy GM vehicles, and continuing to not buy Chrysler vehicles, because of the bailouts the companies received from Washington in December? Fleet sales were off at both GM and Chrysler by 80%. These buyers may also not be impressed with companies that take bailout money.
I'm afraid that Ford's falloff compared to January might be due to the fact that press continually referred to "Detroit" and "the US auto industry" during its coverage of the GM-Chrysler bailout instead of naming the two companies involved. Even though Ford has said it doesn't anticipate needing bailout money from Uncle Sam, many Americans probably think that all three Detroit automakers received bailouts.
- Dismal January results threaten companies' ability to repay bailout loans at end of March
This one explains itself. But no one in the press, beyond reporting the existence of the $13.4 billion in "loans" (the fourth paragraph at this Business Week article says it's $17.4 billion) seems interested in this angle. GM and Chrysler have to submit viability plans in two weeks.
- Foreign makers gain market share in January; Detroit's share well below 50%
Last Wednesday, before results were known, Edmunds.com predicted that Detroit's Big Three would have a combined market share of "46.1 percent in January, down from 52.1 percent in January 2008 and down from 50.0 percent in December 2008." While all of the largest six companies came in with larger individual declines than Edmunds expected, Detroit's underperformance against Edmunds' predictions was collectively much larger than Toyota's, Nissan's and Honda's. The combined market share of GM, Ford, and Chrysler is probably just above 45%. Most of that decline is due to GM and Chrysler, where your tax dollars are supposedly at work.
Cross-posted at BizzyBlog.com.
—Tom Blumer is president of a training and development company in Mason, Ohio, and is a contributing editor to NewsBusters
Editor at Large
Comments Policy
The crippling effects of
February 3, 2009 - 22:49 ET by SpaceManSpiffThe crippling effects of bloated labor, reinforced by Government rules and laws have nearly sunk the US auto industry.
Endless extensions of money promised by the Government ensures that there is no Hope for Change in Detroit.
You think people aren't
February 3, 2009 - 22:50 ET by balboaYou think people aren't buying GM and Chrysler cars because they got bailout money?
It doesn't take many .....
February 3, 2009 - 23:06 ET by Tom Blumer.... current customers to decide they're going to be former customers, or many current non-customers who decide they won't even look at their cars, to have a pretty meaningful impact.
As you can rough out from USAT's table, probably 35,000 - 40,000 "people" who might have bought a car from GM in January didn't. It doesn't take a lot of changed minds to have a big impact in the car market.
Some of the new non-buyers may be just worried about buying from a company that might go bankrupt. Nonetheless, I think both companies need to face the music and figure out how to emerge from bankruptcy viable, and perhaps merged. I'm willing to lose the $17.4 bil, because the alternative is that these guys will probably leech $100 bil from us by the time they're done -- if they're ever done.
I guess that's possible,
February 3, 2009 - 23:12 ET by balboaI guess that's possible, Tom. I just figure that the other companies are making better cars, more of the cars that people want to buy.
Right Bal
February 3, 2009 - 23:17 ET by BlondeSo...you are ready to buy a car. And plunk down $25 or maybe $30K of your hard earned dollars...either in a lump sum, or monthly, for the next four years.
As we know, new cars come with these nifty things called warranties.
So, you care to tell me how the fact that a manufacturer may not be in business, in the next six months, might possibly influence your decision about where to spend your money?
Oh, right.....that doesn't happen in liberal land.
Sure, bal.
Yeah, that's a good point. I
February 3, 2009 - 23:27 ET by balboaYeah, that's a good point. I think I misunderstood Tom's original point.
My primary point ....
February 3, 2009 - 23:35 ET by Tom Blumer.... was that at least some people might be avoiding GM and Chrysler because they've taken bailout money.
Even putting aside the warranty/bankruptcy issue, which is real -- If about 15-20 million people (my estimate) deliberately avoided buying Ford vehicles for two years because of the company's dumb as heck support of gay and politically correct causes, it's not much of a stretch to imagine quite a few people getting worked up over a pocketbook issue like doling out money to car companies.
Something caused January to be a lot worse for GM and just as bad for Chrysler vs. December. Since the vehicles barely if at all changed, something else has to explain it.
Good one, Tom
February 3, 2009 - 23:42 ET by BlondeI hadn't even thought about Ford's gay policy.
As I said to Bal....I bought a Ford because I just had to have a t-bird (sentimental, I know...but my first ride as a human being was in a two seat bird, LOL).
All things being equal...i.e. no looming bankruptcy, I'd buy the car that most struck my fancy, was well priced for what I was looking for, etc. In that market, though, I'd probably have tossed Ford out of any sort of consideration. Which I wasn't aware of when I bought the bird...alas.
I don't know what I'd do if I had to buy a car tomorrow, but I suspect it'd be a Lexus, Bimmer, or another Mazda....for that kind of money, I'm not buying American, just because. I'm going to get the most bang for the buck!
Ford has a gay policy?
February 4, 2009 - 02:02 ET by PopularTechCarbon Dioxide (CO2) is Not Pollution
Quite so.
February 3, 2009 - 23:36 ET by BlondeA car is the second biggest "investment" most people buy.
So a factor like...will this company be in business?....is a huge consideration.
While I feel bad for the car companies, they brought it on themselves.
I'm currently driving a Ford (t-bird)....but only because I just had to have it (and obviously...this little bit of thinking didn't enter my mind in 2005). But if I were to purchase a car tomorrow, I seriously doubt I'd even consider GM. I know I'd not buy another Ford (since the bird is no longer an option)....it's a nice car, but there are far better cars on the market.
Going back a few cars....I'd be highly favorable to the Mazda brand, as well as Mercedes. I had a Jeep Grand Wagoneer, nice tow vehicle, but it left me on the side of the road more times than I can tell you. We had a Pontiac once...it sucked!
Anyway, glad you got the point, Bal. :)
I only buy reliable cars
February 4, 2009 - 02:05 ET by PopularTechReliable Brands: Honda, Toyota and Subaru. Out of the American brands Ford is the most reliable but with all the Japanese manufacturers much more reliable than Ford I would see no reason to buy one. Mercedes are incredibly unreliable FYI.
Carbon Dioxide (CO2) is Not Pollution
My brother in law owns a couple of car dealerships
February 3, 2009 - 23:31 ET by thebutlerdiditAnd he says that people are afraid to buy the GM products. They had been selling about equally, the Cadillac was still doing fairly well, and pickup trucks, but they just dropped out when the companies asked for bailouts. The Hyundais are the vast majority of their business right now. And, of course, they are one of the cheapest brands. So, I think it is fear, price, and lack of credit available. Bad combo. I wish Obama would quit bashing the economy, this is not a good thing. His words mean a lot. If he offers more hope, tells people he sees it coming back soon, then people will buy more. Instead he is playing politics, just to get that porkulus passed.
Bringing the government in to run Wall Street is like saying, "Dad burned the dinner, let's get the dog to cook." PJ O'Rourke
Great points, especially ....
February 3, 2009 - 23:37 ET by Tom Blumer.... in regards to Obama and the lack of offering economic hope. The economic talkdown out of Washington is alarmingly irresponsible.
Uh, didn't he campaign on the fact that he was offering hope?
→ Economic talkdown
February 4, 2009 - 00:10 ET by Cool ArrowExcellent description of what's going on.
I don't deny we're in a downturn. But I'm seeing really stupid advice being thrown around even on CNBC.
I'm hearing absolutely nobody promoting early home payoffs. I accelerated my mortgage, and making that last payment was one of the happiest days of my life.
They also tell their listeners not to move their 401k out of stock, or they'll lose money. Why don't people realize that money is gone whether they sell or not?
I don't understand how people are allowing themselves to be hoodwinked like this.
Tom
February 4, 2009 - 00:20 ET by thebutlerdiditIt's easy for me to see what's going on, in many sectors. My husband, his two brothers and I all own our own businesses. I do sales, consulting, and brokering. We all sit on boards of businesses. So we hear it, day in and day out. People are afraid, even those with money. It is the worst thing a President can do, take away hope. People need him to be there constantly being optimistic. Sure, this is a horrible situation. But to continually use the phrase, "worst economy since the Great Depression," he is working on the psyche of everyone. Horribly irresponsible while running for office, especially after the banks failing, but to continue that into his Presidency, in order to gain capital for pork projects, on the backs of the American people? Unforgiveable. The only decent news I have seen today, he is saying now that he will lift the buy American part of the porkulus. I hope it stands, or I am unemployed, along with everyone that works for me, and my hubby.
Bringing the government in to run Wall Street is like saying, "Dad burned the dinner, let's get the dog to cook." PJ O'Rourke
→ butler
February 4, 2009 - 00:31 ET by Cool ArrowTwice in the last month I noticed citi downgrade a medical stock I'm into.
I can't help but wonder if citi's new owner (federal government) is now pulling strings to bring down select companies that stand in the way of socialized healthcare.
If UnkaBama decided to use citi in that fashion, who would know? Who could stop them?
The answer is no one. And yes, they will do
February 4, 2009 - 00:38 ET by thebutlerdiditwhatever they deem necessary to pass that socialized medicine crap. I think it has been the elusive thing they have all wanted, for so long, they will have no qualms in implementing whatever plans it takes. And you know, once it is put in place, we won't ever be able to get rid of it. Government doesn't ever shrink, no matter how bad the policies are.
Bringing the government in to run Wall Street is like saying, "Dad burned the dinner, let's get the dog to cook." PJ O'Rourke
→ Asian and European mkts.
February 4, 2009 - 00:48 ET by Cool ArrowI notice the Hang Seng and NIKKEI are up over 2.5% already tonight. I took a small gain today and will be sitting out.
Still having fun with a retirement fund I'm not even sure will be there when it's time to spend it.
I only have a tiny bit in the market.
February 4, 2009 - 01:00 ET by thebutlerdiditI got hit hard. I think we lost close to a million dollars, AKA as operating capital, so we will be sitting it out, for a good while. I am hoping Obama does end the protectionist plan on steel. Otherwise, I am so screwed. Enjoy making all you can get out of it, Cool. Maybe you will get lucky!
Bringing the government in to run Wall Street is like saying, "Dad burned the dinner, let's get the dog to cook." PJ O'Rourke
→ Not even close
February 4, 2009 - 01:10 ET by Cool ArrowSince my first son was born 29 yrs ago, I've been sole breadwinner at a blue collar job.
I'll have a million some day, but my wife, kids, and myself are all healthy and we love each other. Life's pretty good right now.
Cool-I can honestly say, money DOES NOT make you
February 4, 2009 - 01:19 ET by thebutlerdidithappy. It makes life somewhat easier, but I have had it, and not had it, but it doesn't make you a better person, or a happier one, regardless of what Hollywood wants people to think. I actually think one of the happiest times of my life, I was so broke I was sending my kids to school with pennies and nickels for lunch money. I have seen a million a few times, it doesn't impress me. I much prefer character and morals. And love is worth more than all the money in the world.
Bringing the government in to run Wall Street is like saying, "Dad burned the dinner, let's get the dog to cook." PJ O'Rourke
Thanks
February 4, 2009 - 06:57 ET by jackssnThat is one of the best advice I've seen. Kids now do not seem to know this. Thanks
jackssn
February 4, 2009 - 07:31 ET by thebutlerdiditWell, thanks, it wasn't really meant as advice, I was just being honest. I think that anyone that has a happy life, healthy kids, and good morals, is the richest person in the world.
Bringing the government in to run Wall Street is like saying, "Dad burned the dinner, let's get the dog to cook." PJ O'Rourke
Nope
February 3, 2009 - 23:38 ET by ChadI think they had a bad business model, bad labor ($$) held hostage by the unions, and overly strict EPA regulations. Hundreds of millions of OUR money has been thrown at these guys and all the same problems still exist as proven by their abysmal sales. It's a huge waste and does not allow for self correcting. I believe THAT was the point of the article.
~Chad
Cincinnati, OH
consider this Bal
February 4, 2009 - 09:13 ET by candanceThis also should serve as a reminder that the bailout isn't working so well. The money was given as loans, but if these companies go bust (as it's looking) all of that cash will be gone. Your tax dollars hard at work Bal.
I used to be sympathetic toward the Republicans who were pressured into voting for it, but with every passing month it looks more and more like a mistake. They should all be held accountable. Torches and pitchforks all around.
Dissent is the truest voice of patriotism, except when it hinders a Democrat.
If I were buying a car today...
February 4, 2009 - 10:06 ET by danhat...I would buy a Ford. Why? Because they took no bailout money. Period. So yes, I think it is a reason.
Dan
http://www.reasonand...
...thought matters
++++++++++++++++
Normally I don't root for the disease. But in your case I am willing to make and exception.
It gets better, don't worry
February 3, 2009 - 23:00 ET by HumblepieNow, by Obama decree, each state can decide their own emission standards. Now we can have 50 variants of a single model. How will that impact the cost and overall sales?
Quick! The gene pool needs more chlorine.
→ Gets better Humblepie
February 3, 2009 - 23:46 ET by Cool ArrowAnd California is going to try to control emissions with max quota sales on guzzlers.
Of course it's quite all right to buy what you want in Nevada and own it in California.
Does Harriet Reid have a stake in a car dealership?
One other distinction
February 3, 2009 - 23:45 ET by suburbaniteThere is another distinction between the groups... the three worst are UAW shops. It could be that average car buyers are sick of subsidizing benefits for a select group of people - benefits that no one else on the planet gets - especially when everyone else is expected to make sacrifices.
"Fight the good fight every moment
It's your only way" Triumph
Yes it could be ....
February 3, 2009 - 23:49 ET by Tom Blumer.... an anti-UAW thing, though Ford's drop-off from -32% to -40% was "only" a bit less than half as bad as of GM's -31% to -49%.
You're right, of course
February 3, 2009 - 23:56 ET by Cool ArrowI opened an online trading acct as a Christmas present to myself. Just $1,000. I put it all in Ford when I heard they weren't taking the bailout funds (yet)
I can't afford a new truck, but I respect Ford for holding out.
GM (GMAC) and Chrysler (Cerberus) are now milking the Bank Bailout also, making them double-dipping gravy-sucking pigs in my book.
Since I was forced to invest in GM and Chrysler, against my will, I have no qualms about shouting what dog companies they are.
I guess I should add I've lost 23% of my investment in Ford, but that investment was free choice.
Hyundai policy helped sales...
February 4, 2009 - 00:04 ET by dasherHyundai interoduced a policy of taking back a car if the owner is laidoff. Evidently that drew buyers who are worried about job security.
I bought a new Honda in May of '08, was considering a Malibu but went with the Honda.. better gas mileage, and better price. I've been pretty happy with it so far.
"Liberalism is just Communism sold by the drink." P.J.O'Rourke
My truck, Ford, and car,
February 4, 2009 - 00:54 ET by jdhawkMy truck, Ford, and car, Toyota, for my wife and I were bought just over a year ago - you know when the stock market wasn't trying to go to zero.
Now, I have to buy a car for my son in medical school as he needs it to go from hospital to hospital on rotation starting in his third year. My plan is to buy a Toyota Camry or Matrix. My purchase is in part based on quality and price, but since the big three unions do not want to budge one iota to increase the big three's profitability, I am certain we are all in for mutiple bailouts of these companies for years to come. The big three should be forced to reorganize under chapter 11. Until that happens, my future car purchases will be from the several U.S. transplant car companies.
It amazes me that the management of the big three car companies are so lackadaisical regarding the practices of the labor unions. I have never heard any of the big three management say a cross word regarding the Unions' telephone thick rule books, their putting the unions ahead of the company that pays their salaries, and their "thumb their nose" attitude regarding the whole crisis.
They (gov.) didn't see this
February 4, 2009 - 01:24 ET by RR GOPThey (gov.) didn't see this coming? Obviously people aren't going to buy new vehicles if they aren't confident they'll still have a job next week.
Besides, I was under the impression that when he got elected, Present Obama was just going to buy them for us with rich people's money?
Was I sadly mistaken here?
One of the 24% who thinks George W. Bush was a great President. One of the 89% who wants to bring back the stock and pillory.
Well, this country isn't
February 4, 2009 - 02:54 ET by mostlymoderateWell, this country isn't what it used to be when Ford and GM were created. With the liberal ideologies of of mega-Unions and all their demands, it is no wonder that these anti-capitalistic views are only now catching up with us. I think that's why government is supposed to stay small and out of the way of free-enterprise.
If it isn't forced high-salaries for labor, forced medical, dental, sick leave, maturnity leave, etc etc it would be emission's standards, "greening" for global warming, environmental standards for factories, etc etc.
MostlyModerate, yeah, the way things are going
February 4, 2009 - 03:09 ET by legacyrepublicanPretty soon, rape is going legalized and be called entitled safe sex.
Well, how else are you going insure you have a new generation of victims?
No, wait. That means you have to outlaw abortions. I know, offer the mother a new car to keep the baby provided it is from Detroit and not from TN.
Tell me about it! It isn't
February 4, 2009 - 03:23 ET by mostlymoderateTell me about it! It isn't my style to sit around and 'bitch & moan' about how great things USED to be. However, I was just discussing with my father on the phone how liberals are basically screwing up everything that was ever "GOOD" about America. Whether it is deserting the sanctity of life (abortion), the sanctity of love and marriage (gay marriage), the hope and dream of free-enterprise and capitalism (big government) the right to protect ourselves (gun control). Heck, we can't even express ourselves anymore (political correctness). It really gets depressing. I will never understand why these liberals never just moved to France or Germany.
I Couln't Agree More..........
February 4, 2009 - 07:52 ET by Steve08080Spot on!
Just guessing
February 4, 2009 - 07:56 ET by general companyI will never understand why these liberals never just moved to France or Germany.
Maybe it is because they have significant immigration laws. : ]
"Television is a freak show" Bernie Goldberg
I'm Staying Away From GM....
February 4, 2009 - 07:49 ET by Steve08080Because I was appalled to hear during one of the hearings that they cut corners and put out inferior products. The CEO that testified admitted this. How are we as consumers suppose to trust GM if they knowingly/intentionally put out an inferior product. Shame on them. Once you throw away your credibility, it takes a looooonnnggggg time to get it back. I will never trust GM. My hats off to Ford for not taking any of the bailout money and for having some sense on how to properly run a business.
I'm in the market for a new car and will consider Ford because I currently own a 99 Ranger with 188,000 miles on it. Other than preventive/routine maintenance, I put in about $600 worth of repairs. Talk about getting your moneys worth!
Lee Iaccoca is right "Where have all the leaders gone"?
The press doesn't know the
February 4, 2009 - 09:28 ET by EdhenryThe press doesn't know the important issues.
1. Unions are no good for the worker or business. The weak liberal press, politicians and trial lawyers used the labor laws to their selfish advantage.
2. Management and unions walked off the quality cliff when they owned the market in the 60s and 70s.
3. I shied away from american cars 80s-late 90s because of the idiots.
But let's take a present, fresh look. they do make great stuff. i bought a 2008 GMC and it is great value. The anti american press wants american companies to fail so we are as weak as THEIR socialist friends in France. They slant info (Michael Moore) or they make up cannards about not building what the public wants.
It is in our interest to have a robust manufacturing sector. save the companies, use the environment to push back on the unions and the onerous labor laws. Have competition to keep the companies honest (believe me, they afailed miserably when there wasn't competition) And don't rely on the press or politicians to make your decision.
I need good inforamtion. the msm doesn't provide any.
→ Card Check starts today
February 4, 2009 - 09:33 ET by Cool ArrowCongress starts the inevitable embrace of Card Check today.
Izzy and the boys will be 'round about 7:30 this evenin' to talk to you about joinin' this here union. Sure wouldn't want nuthin' to happen to the missus and cute young daughter of yours.
Think about it.
hyundai
February 4, 2009 - 14:52 ET by mothergooseHyundai is up the most and they ran the ads promising to take the car back if the buyer loses his income in the next year. Perhaps that's what Ford should have done...............no money from the government and an offer of support to the public.