Reviewing September's detailed sales results in the car business carried at the Wall Street Journal, three things stick out immediately:
- The awful performance at General Motors -- down 45% from September 2008.
- Chrysler's even worse performance -- down "only" 42% from September 2008, but a mind-boggling 61% from September 2007 (62,197 in 2009, 156,799 in 2007)
- Ford's tiny decline of only 6% from a year ago, despite the end of the Cash For Clunkers program in August.
No other major maker had a year-over-year September decline that was even half of that seen at GM or Chrysler.
Yet the press, while beginning to acknowledge serious problems at the companies, both of which were first bailed out by the government and then taken through government-orchestrated, contract law-violating, UAW-favoring bankruptcies (GM discussed here, Chrysler here), still will not entertain the possibility, despite the evidence, that consumers are shunning them because of their bailed-out status and their heavy-handed tactics in bankruptcy.
What follows are excerpts from three reports that covered September's industry results.
At the Associated Press, Tom Krisher and Dan Strumpf even went so far as to try to get a comment out of Uncle Sam's Treasury Department (bolds are mine):
A Cash for Clunkers hangover hit every major automaker except Hyundai last month, pushing down sales and leaving the industry searching for signs of a recovery in October.
U.S. sales of cars and light trucks fell to just under 746,000 in September, down 41 percent from August.
Both GM and Chrysler were the biggest losers last month, while Ford, the healthiest of the Detroit Three, reported the smallest drop of major automakers. Of the top companies, only Hyundai posted higher sales, up 27 percent from September 2008.
.... General Motors Co.'s sales plunged 45 percent while Chrysler Group LLC's fell 42 percent. The weak results continued a string of monthly sales drops for the troubled pair. Now the question is whether their government-funded recovery plans are working.
.... A spokeswoman for the U.S. Treasury Department, which has provided roughly $65 billion to keep GM and Chrysler going, would not comment on the sales figures.
Including equity that was in effect expropriated from the two companies' disfavored lenders, the total amount of aid provided to GM and Chrysler is significantly higher than the already huge figure the AP pair cited.
An unbylined Reuters report acted as if the two companies were innocent victims of last fall's TARP debacle, got a "the sky is not falling" denial out of Chrysler, and noted that GM is significantly increasing production (you read that right; bolds are mine):
Sales in September 2008 were rocked by the collapse of Lehman Brothers and the financial crisis, events that pushed both GM and Chrysler to seek a federal bailout. With consumer uncertainty rising, sales in September a year earlier had dropped to a 12.2 million unit rate.
.... "In the short term, I don't see much of change for GM and Chrysler in terms of sales declines. The No. 1 reason really is their product lineup," said Jesse Toprak, an analyst at Truecar.com.
"The bigger question is whether they can restructure themselves to make money at lower sales levels -- it's going to be tough, obviously," he said.
Fiat SpA Chief Executive Sergio Marchionne, who has taken charge of Chrysler's turnaround plan after the Italian automaker took management control at the U.S. automaker, said reduced incentive spending had contributed to the depressed sales result for September.
"We are not bleeding like people think we are," Marchionne told reporters.
.... GM said it was sticking with plans to increase production in North America by 20 percent in the fourth quarter compared with the third quarter.
.... "Clearly, the economy is starting to gain some momentum," said GM sales analyst Mike DiGiovanni. "But we know it's still going to be bumpy and clearly the economy is still dependent on policy stimulus."
That would be the same "policy stimulus" that Noel Sheppard at NewsBusters noted earlier today was the subject of derisive laughter from CNBC's Melissa Francis and Lawrence Kudlow when Former Clinton Labor Secretary and current Obama economic advisor Robert Reich tried to claim that "the stimulus package is the thing that is actually keeping the economy up, keeping people employed."
As to "restructuring to make money at lower sales leves" -- uh, I thought that's among the reasons they went through bankruptcies. Only a few months out, they have to restructure yet again if they're ever going to make money?
At the New York Times, Nick Bunkley quoted a Chrysler spokesman whining about allegedly tight credit, and noted that GM's core brands fared almost as poorly as the ones that are going away:
“We believe the remainder of 2009 will continue to be a challenge for the U.S. automotive market,” said Peter Fong, the head of Chrysler’s sales organization. “Credit markets have thawed slightly but still remain tight, and consumer confidence, as we saw in September, is tenuous.”
.... At G.M., which is eliminating four of its eight brands as part of its postbankruptcy restructuring, sales for the four brands that will remain — Buick, Cadillac, Chevrolet and GMC — were down 41 percent in September.
But as usual, there wasn't a word in any of the three reports about what I noted over a month ago at the end of the Cash for Clunkers program:
The big story in vehicle sales ever since the bailouts of GM and Chrysler commenced in December of last year has been how those two companies have consistently lost market share ever since. The press has almost dogmatically refused to consider the possibility that consumers continue to shun now state-controlled GM and shotgun-wedded Chrysler because they refuse to do business with bailed-out companies that gobbled up tens of billions of dollars of taxpayer money, running roughshod over disfavored classes of creditors and violating long-established principles of contract law in the process. Even if the avoidance in some cases isn't ideologically based, but instead revolves around warranty and other concerns, lost sales are lost sales.
One has to wonder why the government and its car czars and onsite management at the two companies have never entertained the idea that a backlash might occur, and why it never tried to do anything about it once its presence was apparent in the marketplace. It may be that the establishment media's refusal to take the shunning seriously is contributing to their complacency. If so, they are not doing the companies any favors.
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
→ Saw it coming
October 2, 2009 - 23:12 ET by Cool ArrowAnd the little engine that could (FORD) keeps chugging along.
Americans will continue to reward FORD for not jumping into Obama's arms.
I'm hoping to see that conflict of interest litigation when FORD calls the UAW on its double dealing with the government against them. (You've opined on this issue before, haven't you Mr. Blumer?)
Yes
October 2, 2009 - 23:34 ET by Tom BlumerYes, I have, though it wasn't an opinion as much as an observation that the press hasn't even acknowledged the existence of the conflict of interest, accompanied by criticism of the incredible claim that Ford can afford to be generous because it's doing less poorly than almost everyone else (never mind that they lost billions for years previously).
Is there news about any potential litigation, or is it what you expect if negotiations don't go well?
I concur with that. Last
October 3, 2009 - 08:27 ET by BDI concur with that. Last winter I had the option of purchasing either a GMC/Chevrolet truck or a Ford. I shopped around and found the competitors for the class of vehicle I wanted and began doing comparisons like I was trained at CAS3 for a decision.
Then I read the reviews in Consumer Reports and several other industry magazines which all said essentially "Flee from the GM showroom - regardless of the deal they are willing to make" and "The Ford product will out perform its competitors for maintenance and workmanship."
So it really wasn't even a choice.
And I doubt Obama's bailout to the Auto workers union will improve the situation any time soon. Likely the GM products will go the way of British cars from the 1970's when they were likewise nationalized and will not be able to be given away.
Just by surviving without Government involvement Ford has insured its dominance for the next twenty years.
Re British
October 3, 2009 - 10:06 ET by slickwillie2001I heard a rumor that GM was going to start using Lucas electricals. Any truth to that story?
Ha! Why do the brits
October 4, 2009 - 08:52 ET by BDHa!
Why do the brits drink warm beer?
They have Lucas Refrigerators.......
I still want a Corvette,
October 3, 2009 - 18:55 ET by Dan The Man 2I still want a Corvette, they are pure sex in an automobile form.
Dan, hate to tell ya, but sex in an automobile form comes...
October 3, 2009 - 20:09 ET by R D Helm...wrapped tightly in the well-chiseled body of a Porsche 911.
:-)
-Dave
The election of 2010 will be our last chance to save our republic. -Neal Boortz
I used to think so but
October 3, 2009 - 20:43 ET by Dan The Man 2I used to think so but after a few foriegn sports cars I have come to the conclusion that foriegn iron dont measure up. The costs are lower and the performance is better, gas mileage is a bit better on the porsche side. So lets both take 60K and buy a new car, what teh Porsche costs 80K, hmmmm.
American muscle there is no substitute.
I have literally driven circles
October 4, 2009 - 05:11 ET by Army Brataround all forms of Porsches while out accelerating them. The drivers did not find the same humor in that that I did. In fact...they seemed kinda angry. Heh....
My little Vette is down to 1600 pounds. With 450 horses whinin' out of a custom built 327, (built in my living room.) 0 to 60 happens in 2.8 seconds and first is all in at 78 MPH at 76000 RPM. True it's not stock but...
Show me a Porsche that will do that. My custom plate reads WDOMKR on accounta the poor saps that try and follow me through curves. I've changed out the suspension to that found on the new ones. Wow. Big difference.
islam is a lie and Truth is killing it.
If you are 4 foot 9 Inches
October 4, 2009 - 08:51 ET by BDIf you are 4 foot 9 Inches and can FIT in a Porsche.....
I've owned a 66 convertible
October 4, 2009 - 05:01 ET by Army Bratfor about 25 years now. Major head turner and major fun. Nothing like cruising along at 140 MPH with the wind...well...it used to be in my hair...now it just slips over my skull.
islam is a lie and Truth is killing it.
I believe GM has increased production 20% because...
October 2, 2009 - 23:33 ET by traderjamesit's current number of days of inventory on hand is so low, that even if you want a particluar model, it's out of stock at the dealership. This is only temporary, and a direct result of cash-for-clunkers, though GM did not have one vehicle in the top ten sellers, did they?
Have you noticed, in your home towns, how empty the dealership lots are these days? I noticed this a few months ago. Used to be, you would drive by one, and if you happened to turn your head toward the lot, it was always brimming with cars. I always took this for granted. Of course they would want to fill every available space with a shiny new vehicle, right? Not so these days...and it's not because their sales are through the roof...just a thought.
I live in a city of about
October 2, 2009 - 23:38 ET by ahusser60,000. All the GM dealerships were closed except for 1 truck dealershop. Have to drive 30 miles now for a GM. The Hyundai and Ford dealerships are doing well. I think there is one Chrsler dealership left.
"Somehow, I told you so, just doesn't quite say it." Will Smith in 'I, Robot.'
Didn't the Saturn Brand
October 2, 2009 - 23:38 ET by Army Bratjust bite it?
islam is a lie and Truth is killing it.
Yep. A buyout by Penske
October 3, 2009 - 20:09 ET by JoeBobYep. A buyout by Penske didn't work out, so the Saturn brand will be retired. I've owned a couple of 1997-2000 SL's, and loved 'em to death (literally with the '97). The '97 stick gave me 40mpg when it wasn't even PC to worry about it. The Saturns just went downhill when the union took over.
JoeBob
Without recognizing the ordinances of Heaven, it is impossible to be a superior man. - Confucious
Talking GM and Chrysler into oblivion
October 2, 2009 - 23:42 ET by CO2MakerI remember last summer, listening to the many TV commentators who declared, as if it were as true a statement as man-made global warming, that GM and Chrysler made bad cars that no one wanted, because the Japanese made all the good cars. Really? I didn't think GM cars were all that bad. Besides, the inroads made by the Japanese car companies started back in the 70s and had built up a good bit of brand loyalty and recognition.
But last summer, who would be stupid enough to buy a Chevy or Buick when all the pundits and really smart talking heads were telling us that GM wouldn't be around long enough to get your first check up under the warranty. Who'd plunk down $20,000 or more under those conditions?
As far as I'm concerned, the glib pundits did as much to weaken GM as any other single cause. Yadda yadda bankruptcy yadda yadda bankruptcy yadda yadda weak sales yadda yadda we told you so!
Talking GM and Chrysler into oblivion
October 2, 2009 - 23:46 ET by CO2MakerI remember last summer, listening to the many TV commentators who declared, as if it were as true a statement as man-made global warming, that GM and Chrysler made bad cars that no one wanted, because the Japanese made all the good cars. Really? I didn't think GM cars were all that bad. Besides, the inroads made by the Japanese car companies started back in the 70s and had built up a good bit of brand loyalty and recognition.
But last summer, who would be stupid enough to buy a Chevy or Buick when all the pundits and really smart talking heads were telling us that GM wouldn't be around long enough to get your first check up under the warranty. Who'd plunk down $20,000 or more under those conditions?
As far as I'm concerned, the glib pundits did as much to weaken GM as any other single cause. Yadda yadda bankruptcy yadda yadda bankruptcy yadda yadda weak sales yadda yadda we told you so!
The only customers Government Motors is going to have...
October 3, 2009 - 00:04 ET by R D Helm...is the federal government itself, along with state, county, and municipal governments who wish to, a'hem, keep bellying up to the federal trough.
Know whut I mean?
-Dave
The election of 2010 will be our last chance to save our republic. -Neal Boortz
Dave, I don't
October 3, 2009 - 20:04 ET by JoeBobDave,
I don't know about the feds, but at least for the state and local police units, they keep going back to the Ford Crown Vics. I've seen 'em change to first the Sables and now the Chargers, but they keep going back to the classic.
JoeBob
Without recognizing the ordinances of Heaven, it is impossible to be a superior man. - Confucious
JoeBob,
October 3, 2009 - 20:11 ET by R D HelmLast I heard, Ford was going to cease production of the Crown Vic after the '09 model year. They stopped selling them to the public in '08.
Damned shame, I think.
-Dave
The election of 2010 will be our last chance to save our republic. -Neal Boortz
Chevy van
October 3, 2009 - 00:10 ET by KC BeachMy first vehicle was a 1978 Chevy van that I bought used and converted myself. I have owned a Chevy van since high school and at 46 have never owned anything else. When the 2007 model I have now dies I will become a Ford man. After 30 years it will take some getting used to, but I will never own another Gov Motors product.
I expect there will be some UAW upheaval at Ford soon...
October 3, 2009 - 00:21 ET by R D Helm...after all, Obama snatched GM and Chrysler without a whimper, what is going to stop him from going after Ford?
The republicans? LOL!
-Dave
The election of 2010 will be our last chance to save our republic. -Neal Boortz
probably not
October 3, 2009 - 14:23 ET by jon_torlinBut looking at how the sales went from a year ago, I seriously doubt that they would try to get Ford now. Yeah, they might have had a 6% decline in sales, but considering what's going on with the economy and unemployment, a 6 percent decline is very surprising and a good thing to boot too.
I suspect that what will happen down the road is that GM and Chrysler will continue to have a decline in sales, not to mention a decline in inventory. This is one of those cases where the American Consumers are speaking out loud with their actions and one that will probably make the Soetoro administration look at wanting to try to force the consumer to by GM brands instead, just like they are trying to force this health care crap on us, all filled with penalties and etc. I wonder if the media will get involved and start asking in the same vein as the health care that the public doesn't know what's good for them with buying GM and Chrysler instead of Ford.(I know there are other brands but this is the bailout we're talking about)
That all depends on if we survive the next several months, we're already in a bad spot right now after the first 9 months so far.
-Jon
I would not purchase a union run
October 3, 2009 - 00:29 ET by DelsaGovernment Motors car if you paid me.
Oh, nooooo, the MSM, the
October 3, 2009 - 04:06 ET by RR GOPOh, nooooo, the MSM, the White House, Congress and Demoratic mouthpieces on the airwaves have declared this a huge success.
How can any sane person let stuff like numbers/real sales stand in the way of Socialist progress?
One of the 34% who thinks George W. Bush was a great President. One of the 86% who wants to bring back the stock and pillory.
I bought a Dodge truck
October 3, 2009 - 05:19 ET by texanbychoiceI bought a Dodge truck the other day. I couldn't help myself, they took $10,000 off the window sticker and gave me $6,000 for my trade in. I can't resist that sort of temptation.
Courage is not the absence of fear, it's the mastery of it.
That's what they are banking on
October 3, 2009 - 05:46 ET by MOONSTRUCKThe government is going to make government motors vehicles sooooo cheap it will be hard to turn away if you are shopping.
Not if it were the last car or truck on earth! Easy decision for me. I have been a Ford fan all my life, and hope they can hang in there.
Time to stand up to this government. Just say NO!
I wonder how the government motors employees felt about this sell out?
Unfortunately, they'll continue to price this way too
October 3, 2009 - 07:11 ET by BlondeIt doesn't matter how much money the vehicle cost to produce, with Uncle backing Government Motors, they really will be able to give them away if necessary. It's all about supporting the unions for the democrats. We need to take back Congress and dump this "investment" pronto.
I don't blame anyone for taking care of their own pockets, though.
I bought an XTerra during C4C, although the would-be trade in didn't qualify....gave it to the kids. We are really happy with the XT, it's not as big as my old Grand Wagoneer was (I still miss THAT vehicle)...but I think it has enough horses to haul whatever I'd want....which is about 25' of fiberglass with a big 250 on the transom.
I hope he fails, too.
You gonna take it to CR?
October 3, 2009 - 19:24 ET by Dan The Man 2You gonna take it to CR? Im more of an I/O fan myself less hassles and cost involved.
Blonde..my daughter has an
October 3, 2009 - 19:28 ET by celatorBlonde..my daughter has an XTerra...she likes it very much.Reliable, good in snow, goes everywhere.
No citizen's right to life, liberty, pursuit of happiness, or property is safe as long as Obama is President of the United States.
And note that Saturn.....
October 3, 2009 - 07:37 ET by BlueCat57And note that Saturn's successful brand and customer service was built by a NON-union workforce.
That's like reading Marx to become an entrepreneur.
Deliberate damage
October 3, 2009 - 09:27 ET by sevenCancelling dealers is deliberate.
Cancelling brand names is deliberate.
No one else is to blame. Stopping production is deliberate.
They will never recover all the way.
Recovery is not the intent.
October 3, 2009 - 09:37 ET by BDRecovery is not the intent.
Exactly..
October 4, 2009 - 05:14 ET by Army BratThe aim is to destroy not build. Destruction must precede change...at least the kind Obama envisions.
islam is a lie and Truth is killing it.
The two failed car
October 3, 2009 - 14:07 ET by jdhawkThe two failed car companies haven't mentioned a backlash, because the people now in charge are the unions. The illegal deal that the bond holders got did that.
What's more, taxpayer money hasn't stop flowing to the two failed car companies. Their latest coup is contained in HR 3200, obamacare. There is relieves the unions of 10 billion dollars of unfunded healthcare debt. Further, it protects the unions from having to actually use obamacare.
Remember, a car purchased from a car company that uses a union force will only help strenghten the dimocrats with money and labor before during and after elections. For example, during the election cycle, the last three months leading up to the election are devoted by the unions almost exclusively to campaigning for dimocrat candidates. 100s of millions of dollars of unions dues go into the coffers of dimocrat candidates.
Unions suck; they are taking our liberties away by ensuring socialist are elected.
I can
October 3, 2009 - 18:26 ET by Joe CamelI can 100% assure you that I will NEVER buy a GM or Chrysler product again, ever..And I know at least five others who are just like me, and they are union people. Don't ever believe that all union people are those who follow their leaders blindly. Times are a changin'..
Will NEVER Buy A Government Motors Car
October 3, 2009 - 19:37 ET by BigSpoon65They couldn't put a big enough rebate on these things to ever tempt me to support our corrupt government and thuggish labor unions. My country and our eroding freedoms are a heavy price to pay for selling out. Wouldn't be able to look my kids in the face without feeling like I betrayed them. I want socialism to fail as rapidly as possible so we can get back to the free market capitalist principles that made us the wealthiest nation in the history of the world.
Winston Churchill ~ "Socialism is the philosophy of failure, the creed of ignorance, and the gospel of envy."
You are damn right that Chrysler and GM are being shunned
October 3, 2009 - 20:07 ET by Paarland I am one of the shunners...I am part owner of a trucking and courier company in northern NJ and we killed an order for 8 HHRs when this Obama takeover debacle occurred. It cost us 5-6 grand..maybe more but all 4 partners decided that we would not buy from GM. It was costly financially and operationally because the HHR is a fine fine product and fit our requirment to a 'T'.
But we took a stand on principle...our business itself or service to our customers did not suffer (except for costs incurred)...and are happy we took a stand against Government Motors /// GM
Paarl of RHodesia
Men and women of principle
October 4, 2009 - 05:19 ET by Army Bratare a rare thing. I congratulate you on standing by and for yours.
islam is a lie and Truth is killing it.
you have to wonder
October 4, 2009 - 08:49 ET by jon_torlinThey talk about the bailouts and backlash, and so-called recovery and etc, but with everything going on, all the obvious signs being ignored, why haven't more people get the idea that it's part and parcel to the destruction of this country from the beginning? Yeah, destruction sounds like a harsh word, but this is a harsh reality we're in now.
The way I see it, it's any day now that we're going to fall right off the edge. The country is under seige with more jobs being lost, more businesses closing, the left whittling away at our freedoms, it's like that commercial where a guy opens the door to his house and a flood of water comes rushing out knocking him off his feet. And the bastards in charge are not just letting it happen, they are making it happen. They know what they are doing. That's why idiot savants like Biden keep running around saying the stimulus is working, because it is, it's working the way THEY wanted it.
-Jon