For the second month in a row, taxpayer-bailout beneficiary General Motors fared worse than every one of its non-bailed-out competitors.
The Associated Press's Tom Krisher and Bree Fowler didn't totally hide that fact, but it took them until the 22nd paragraph of their report, which was supposedly about the February performance of the entire auto industry ("Auto sales slump persists as consumers stay scared"), to mention the specifics of the sales declines at Toyota, Honda, and Nissan. Those declines "just happened" to be smaller than those at General Motors, fellow bailout bud Chrysler, and non-bailout recipient Ford. The AP pair stated in an early paragraph that "Japanese makers fared only slightly better." Readers will, I believe, question Krisher's/Fowler's definition of "slightly."
Also not emphasized, and illustrated in a chart below: The share of the US auto market held by Detroit's so-called Big Three has fallen significantly since the government bailouts of GM and Chrysler in December.
Here are excerpts from the AP pair's report yesterday:
Major automakers' U.S. sales continued their deep slump in February, putting the industry on track for its worst sales month in more than 27 years as huge rebates and low-interest financing failed to spur fearful consumers to make a major purchase.
General Motors' sales tumbled 53 percent from a year earlier, while Ford's U.S. sales fell 48 percent and Chrysler's fell 44 percent. The major Japanese automakers fared only slightly better.
The slide casts further doubt on the financial viability of GM and Chrysler, which need to sell cars and generate critical cash to supplement the $17.4 billion in government loans that are keeping them in business.
Automakers and analysts have been predicting sales will rebound in the second half of this year, but they are becoming less certain. Massive layoffs, the stock market decline and sliding home values are prompting people to hold on to their cars longer, while those who are buying are more often opting for a used car or truck.
..... (Paragraph 22) Toyota Motor Corp.'s U.S. sales plunged 40 percent, while Honda Motor Co.'s sales dropped 38 percent and Nissan Motor Co.'s fell 37 percent.
Sales of the Toyota Camry, the best selling car in the U.S., sank by 41 percent. Demand remained strong for Honda's Fit subcompact, whose sales dropped 2 percent, but sales of its top-selling Accord sedan fell 42 percent.
Most other automakers posted significant declines, but Subaru of America Inc.'s U.S. sales edged up 1 percent in February as sales of its top-selling Forester model doubled. Motor Trend magazine named the Forester its sport utility vehicle of the year in the fall.
Kia Motors Corp.'s sales were about flat from a year earlier.
Here are the details I have on the past three months, followed by data showing how the Big 3's share of Big Six sales has declined since December, the month of the Bush-approved and Obama-sanctioned bailouts began (sources: February 2009, January 2009, December 2008):

I contend that there is reason to believe that potential buyers -- and it doesn't take many to have an effect -- are shunning GM and Chrysler because of their bailed-out status. Unfortunately, Ford seems to be suffering similar blowback, which I believe is at least partially because the press has all too often headlined the aid given to GM and Chrysler as "the Detroit bailout" or "the US auto industry bailout."
The AP pair did not offer the very existence of the bailouts as a possible reason beyond the obvious ones relating to the ever-weakening Pelosi-Obama-Reid Economy aka The POR Economy. They should have, unless they have an answer to this question: What else, besides producing possibly lower-quality cars, explains the 50%-ish plunges in Detroit -- much bigger than before the bailouts -- and the more than "slightly" smaller drops elsewhere?
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




















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March 4, 2009 - 16:25 ET by Cool ArrowThe pigs that are GM and Chrysler will get a special interest-free dispensation from the government initially, followed by forgiveness later.
GM & Chrysler are double dipping with their auto arms and their banking arms.
I'll buy a Ford. I'm coming to love that company.
We won the cold war! Why did we surrender?
They're already working on
March 4, 2009 - 16:52 ET by SickofLibsGM & Chrysler are already working on converting all those idle welding robots to autonomous motorized street beggars on little sleds that can navigate to Congress and beg on their own.
Save all that jet carbon and hotel expenses, ya know?
→ May as well
March 4, 2009 - 16:58 ET by Cool ArrowLove the styling of the Pontiac Solstice and the Dodge Challenger, but those companies have thumbed their noses at me, believing I'll buy at any price, regardless of their business practices.
I hope both companies go down the tubes. I'm sick of their arrogance and sense of entitlement.
We won the cold war! Why did we surrender?
cool;
March 4, 2009 - 17:30 ET by SickofLibsHaving leased mostly Chrysler products in the last 20 years (Jeeps & Dodge SUVs, and covered under a 36-mo warranty till lease-end), I have to say I would never purchase one for the long haul.
Had a few I did purchase as teenager-cars with low mileage, but those motors blew up, leaving me with zilch. Not impressed.
I don't know about you...
March 4, 2009 - 16:32 ET by heldmyw...but given Emperor Obama's porkulus project, I'm hoarding every cent I can get my hands on, stockpiling food, medicine, ammunition and alternative heat/electricity sources.
Buy a car? Now?
Not a chance.
This is a UAW bailout!
March 4, 2009 - 17:06 ET by slickwillie2001This is being packaged and sold as a bailout of General Motors and Chrysler but it is NOT that. It IS a bailout of the UAW. UAW 'concessions' thus far have been token and entirely reversible the next time they strike. Non-union work forces have been cut drastically. If there was not a far-left loon in the White House, these companies would be now emerging from bankruptcy proceedings and on the way to recovery. Because Dear Leader is their hireling, they are getting bailed out.
Agreed SW
March 4, 2009 - 17:18 ET by BKeyserIs there any way to determine what the unemployment rate is in Michigan and how many were formerly salaried in the auto industry vs. formerly UAW? I agree with your assessment that the UAW benefitted from the bailout and it's likely most of the money went to their retirement/health care fund (whether admittedly or not). I just wonder how many are actually unemployed while GM and Chrysler continue down the path to oblivion riding a wave of taxpayer dollars...
Blow-Up Of Bailed Out
March 4, 2009 - 17:18 ET by mtdavsI'll admit, I do own and Chevy pickup. It's a 1993 and I do like my old pick up, especially since it's paid for! Regardless, I still try to reason in my somewhat backwoods brain as to why the Gov't bailed out the car mfg's and I still can't come up with a reasonable answer. I still insist, we'll be seeing an interesting election come 2010 and '12. No doubt...
Blow-Up Of Bailed Out
March 4, 2009 - 17:21 ET by mtdavsOOPSs!!! Sorry for the double post...
I've always been a Ford man,
March 4, 2009 - 17:59 ET by USA4freedomI've always been a Ford man, the little 1994 Ranger I own has 180+K and never a problem..
(well until I just said that..)
I had a guy the other day pull up next to me at the gas station with a Ranger like mine, He asked me how many miles I had, I bragged 180K he turned around and told me that he had almost 250K with the org. eng.
Ronald Reagan, 1962: I did not leave the Democratic party, the party left me.
Insert: your name, 2008, and the Republican party.
What the president cannot get into his head is that
March 4, 2009 - 18:51 ET by Cape Conservativegoing into business is a major risk - with good management, you succeed - with bad management, you fail!!!! We should NEVER have given the first $$$!
I lost any respect I had for the executives who sat there hat in hand and begged and took constant abuse from Frank, Dodd & Company! I would have given them the single finger salute and walked out to run my business myself--without government interference!!! And as has been proven, it has NOT worked!!! And we who watch our pennies are left with the bill!!!
And, the beat goes on - Wednesday evening wine & cheese gatherings for the president and friends - what saying comes to mind? "Let them eat cake"???????
It is no dishonor to be in a minority in the cause of liberty and virtue. ~ Sam Adams
I have bought domestic cars
March 4, 2009 - 19:55 ET by jdhawkI have bought domestic cars all of my life except for a brief college dailance with a VW Bug. Today, I own a Ford Pickup to pull our horse trailer and to serve as the "family" car and a Ford Mustang GT - it's my mid-life crisis car! lol
Little did I know that I was serving the unions and boosting the DNC's ability to promote the liberal agenda and elect dimocrats. Heck, come election time, the unions' management and staff literally cease work and are out and about campaigning not to mention that millions that are diverted from the union workers' dues to the "cause."
Well, that ceases with my next cars. However, that may be in the future somewhat as both vehicles are 2008 models.
The worm turns - if ever so slowly . . .
Stimulating the Economy
March 5, 2009 - 11:02 ET by TBARI did my part Monday. I bought a Hyundai Santa Fe, 40% US content, assembled by US citizens (allbeit non-union) near Montgomery, Al. I've had both Big 3 and Foreign mfg'd. cars in the past, mainly Big 3. This will be my 3rd Hyundai. Korea is the new Japan.
Life is too short to be serious