Friday, after the April vehicle sales figures rolled in, Associated Press reporters Kimberly S. Johnson and Dan Strumpf, in the opening sentence of a report carried at USA Today, showed that they finally noticed two things, one of which yours truly caught three months ago (NewsBusters; BizzyBlog), and the other which first became clear last month (NewsBusters; BizzyBlog).
The former point is that the American people are continuing to shun bailed-out car companies General Motors and now-bankrupt Chrysler. The latter one is that Ford's gain has been most the two bailed-out companies' loss.
Here is how the inconsistently-headlined ("Auto sales fall in April; Ford gains market share from Chrysler") AP report began (bolds are mine):
Detroit's Big Three is becoming Ford and the other two.
Story Continues Below Ad ↓While its rivals stay afloat with billions in government aid, Ford grabbed a bigger slice of the American car market in April with record sales of its fuel-efficient Fusion. Those results pushed it past Toyota to retake its post as the nation's No. 2 car seller.
Even though Ford's monthly sales tumbled 32% from a year earlier, it captured 16% of the total market. Most of those gains came at the expense of General Motors and Chrysler, which unlike Ford are dependent on federal help.
The press, however, is missing or avoiding the irony that the two companies the government is bailing out are not only the ones that have the "worst" mix (from the so-called "green" point of view) of car vs. light truck sales, but are also the two which have their mixes going most decidedly in the "wrong" direction among the six largest car companies (source spreadsheet pictured here obtained from MotorIntelligence.com):
Yes, you're reading the above right. Chrysler is the eighth-largest car seller in the US, moving a pathetic 15,000-plus cars in April, fewer than both Hyundai and Kia.
Given enough government bailout money and enough engineering expertise from Fiat, it's conceivable that Chrysler and even GM could become mostly manufacturers of cars -- perhaps even at costs that might lead to profits in a future that seems far, far away.
But the two companies are fighting one other "little" problem: Enough of the American people to get noticed are abandoning them. That abandonment has essentially grown in sync with the ever-deepening level of government involvement and the extent of general knowledge about that involvement. If enough of the public ever understands the gist of what President Obama and his car czars attempted to impose, complete with alleged threats and intimidation, on Chrysler's secured lenders before bankruptcy, and will now attempt to impose during bankruptcy proceedings, the shunning may accelerate further.
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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Comments Policy
Cash For Clunkers
May 3, 2009 - 10:43 ET by JDWThe government is considering a bill to provide a $5,000 voucher to any purchaser who's vehicle's combined mileage is 18MPG or less. The vouchers can be applied toward new or used, less than $40k, 25MPG... and must be built in our country.
JDW
DAILY WAVE
When people fear their government there is tyranny. When government fears the people there is liberty.
Government Motors
May 3, 2009 - 10:49 ET by slickwillie2001When Government Motors starts selling again, I expect their pricing will be 'progressive'; that is, poor people will pay a lower price for a car than rich folks, just like those Young Republican college cookie sales. If you are on Obamafare, I expect you will get your new car for a pittance. If you are a fat-cat union employee or a retired UAW worker on a fat-cat retirement package, I expect you will get a huge discount as well.
Retired Ford Worker
May 3, 2009 - 11:12 ET by mikebromoThis retired UAW worker hopes that you are correct on the huge discount.
Wasn't surprised to read anti-American union comment. I only had to waite for the second comment.
Remember, 40% of the UAW does not vote for the democrats!
If you know that much then...
May 3, 2009 - 13:08 ET by TASS71you cannot be blind to the fact that your dues helped to fund campaign contributions to the DNC. Unions are nothing short of organized mob rule (I know, contradiction in terms, but check your premises), and your dues helped support that mentality. I guess you can overlook where your dues money went in light of the other benefits you got?
However beautiful the strategy, you should occasionally look at the results. - Sir Winston Churchill
maybe.
May 3, 2009 - 23:01 ET by Willis_Leon_JohnsonBut 97% of your union dues goes to fund liberal politicians through campaign donations, bribes, and outright purchases.
http://gjresult.com
Darn, I wish I had more
May 3, 2009 - 10:49 ET by Scuba DudeDarn,
I wish I had more money to invest. I bought some Ford stock a few weeks ago when it was under $2.00, now I wish I had bought more!!
I do not see myself purchasing a new car anytime soon, but if I were I think I would look to purchase one whose company is beholden to the Govt.
"The wrOng ONE was elected"
→ Me too Scuba
May 3, 2009 - 11:18 ET by Cool ArrowI've been bragging on the stock since it turned down the TRAP money. But alas, I sold at 1.75 when I should have ridden it up the whole 360%
LYDSEXICS UNTIE!
Cool Arrow, Whose to say
May 3, 2009 - 12:18 ET by Scuba DudeCool Arrow,
Whose to say it might not continue to climb? I have a trailing stop order on my shares. If it loses 10% of it's value there is an automatic sell. But if the prospects are good I would buy into the company again.
"The wrOng ONE was elected"
→ It might Dude
May 3, 2009 - 12:33 ET by Cool ArrowBut anything over $7.50 is going to surprise me this year.
I could be wrong if "Buy American" comes to mean "Buy American vehicles from a company that didn't steal money from you"
LYDSEXICS UNTIE!
If Ford is building anything
May 3, 2009 - 11:32 ET by DelsaOTHER than Italian cars or golf carts, THEY WIN!!
Now if Ford could get rid of the Union Bosses who have Ford in their sights.
Ford needs to restructure just to get rid of the weights (unions) around their ankles.
GO FORD!
X
May 3, 2009 - 12:15 ET by serfer62And I don't buy American cars because 60% vote Kommiecrat and the union is a BIG donor to them.
I may reconsider that if Ford stands true though and good luck to them anyway.
Will the new GM Green Car have a mowing attachment?...
DODGE TRUCK
May 3, 2009 - 12:24 ET by MaytagI drive a Dodge diesel ram 2500 It is a awesome truck I get 21 + on the hiway ,less plowing snow (long driveway 7/10 of a mile) .I am sad to see them going away. Even if the Goverment warranties them it will be a mess. This should be a precursor to what health care will be.
The local unions are not the problem ,they in my opinion would be much more flexible in saving thier jobs. It is the guys who haven't got thier hands dirty in 20/30 years who want to hold on to power. Now they will control Chrysler like a slush fund ,it is gonna be ugly..
What happens to service?
May 3, 2009 - 13:03 ET by slickwillie2001I haven't tried so I don't know, -what happens lately if you go to Chrysler or GM service dealer to try and claim an in-warranty retrofit/repair? Dealers generally want that business and solicit those on their mailing lists for it, because they charge the car company back for it. Are those charges being accepted?
I got a new catalytic converter for my Dodge truck a couple of years ago because it developed the marble-rattling-around-in-a-tin-can sound problem.
I said it when the first
May 3, 2009 - 12:24 ET by SnappyI said it when the first bailouts occured and that crazy old speaker of the house asserted that bankruptcy was NOT an option. GM and Chrysler had lost my business forever and they were both going into bankruptcy eventually anyway. Now we see that they are, and I am not alone in shunning them. My reasons however are not due to any UAW or dislike of unions, as I do beleive that unions have a place in the market. However, I do NOT like the way the Government feels they can step in and keep a business afloat, allowing union contracts that belong in a fantasy world rather than an actual competitive market. In this I blame the union management and the company management for cashing in on both sides and allowing a non-competitive atmosphere to persist.
family arguements
May 4, 2009 - 12:16 ET by MaximusBraveheartI said the same thing to my brother who argued they must be bailed out. I said they have to go under; it will not work, it can not work. Just simple math. Sure enough they take more and more money and still go under. So where did all these BILLIONS go to? Why are car prices still so high? The rebates now seem smaller than 5 yrs. ago! Why pay people not to make cars? Does that help people get cheaper cars? NO. They WANT them more expensive! They do not care about YOUR budget. It is the government! M-B
How long can the
May 3, 2009 - 13:20 ET by MidAmericaHow long can the Government allow Ford to embarrass obama's car companies? You know Government Motors wants a monopoly and after they get that they will set their sights on getting all cars manufactured or assembled in this country to be part of the UAW, which is just another branch of Government Motors, an unofficial department run by the Whitehouse.
Long term I see no hope for
May 3, 2009 - 13:22 ET by slickwillie2001Long term I see no hope for Chrysler and GM. The ridiculous notion that the UAW can run these companies is silly and naive. Look at the sad history of union-run companies.
The unions will slowly bleed these companies into the ground, while extracting more and more money from our foolish federal government. Their objective will be to put away enough money to fund existing pensions, and enough to give every union worker still there what amounts to a buyout package that is very close to the value of a gold-plated UAW pension.
The UAW has as little interest in making cars as the teacher's unions have in educating our children; that's not their objective. The money that the unions gave to the Bamster's election has already cost us 1,000 times that amount, and the end is nowhere in sight.
The 2012 Pelosi GTxi SS/RT Sport Edition
May 3, 2009 - 15:26 ET by TheTruthThe future of GM and Chrysler under Government control?
The 2012 Pelosi GTxi SS/RT Sport Edition
What get's overlooked
May 3, 2009 - 15:33 ET by BlazerWhat get's overlooked alot here is that the so-called foriegn car manufacturer's are just as American as their GM, Chrysler and Ford counterpart's and are built right here in America too, only without the crushing burden of The UAW communist's.
At one time the Union label was supposed to be one of prestige. However with all the junk that's been coming out of Detroit for the last 30 year's one has to wonder exactly how in the heck they ever deserved any prestige at all.
Rest assured I will never ever purchase any more junk from Congressional Motor's and the fat cat union's.
"You will never find a more wretched hive of scum and villainy. We must be cautious. "
- Ben Kenobi on Liberals, and the MSM.
" The Cake is a lie."
Cars are outsold by pickups.
May 3, 2009 - 19:23 ET by sevenFiat has no truck for us. None. They couldn't give one away and we never could stomach fiat cars.
Obama has been a Used car salesman for 4 days. They can make money selling light trucks. Obama is also not smart enough to know that increased resale of used trucks is more than enough money to offset their increased fuel comsumption. as soon as Gas fell 1-2 dollars, people bought what they find usefull. Pickups.
What's next?
May 3, 2009 - 21:57 ET by slickwillie2001After GM and Chrysler have stocked the dealers with vehicles that the Bamster has ordered them to build, what will he do if they don't sell? Will customers get same treatment he is unleashing on GM bondholders? Will ACORN harrass customers that buy from Ford instead of Government Motors? Will the UAW strike Ford for higher wages and benefits than they get at GM and Chrysler?
Nothing good will come of this.
**GM
May 3, 2009 - 23:08 ET by pelicanmarshObviously this comment is not made against the everyday worker at GM, but moreso towards its big wigs:
YOU SUCK and shame on you for feeding at the teat of the government.
Have you no dignity?
Look at ya now.
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Add-on:
And didn't Ford buck (ooh, don't say those two words together too quickly, yeesh!) the esteemed FDR back during the Depression? Kinda the whole, Keep Your Filthy Government Hands Off My Company thing?
Nice to see they still got it in 'em.
the government requires me
May 3, 2009 - 22:59 ET by Willis_Leon_Johnsonto buy a Ford.
I NEED at least a 3/4 ton pickup, preferably diesel powered because I live and WORK in the Rocky Moountains.
The GM Duramax, in my opinion, is a better power plant when backed up with the Allison Transmission.
HOWEVER, any warranty under government control of GM or Chrysler takes both GM and Chrysler products out of the lineup because they would not be political correct enough and any problems would be met with endless obstacles until the owner of the vehicle gives up and gets rid of the frowned upon vehicle model.
Ford, on the other hand, isn't under obama control and can continue to warrant their vehicles.
http://gjresult.com