toyota,GM,Ford post massive losses. GM and Ford to ask Gov for more help

[forza2.0]

By the Numbers - September 2008: Nobody Wins Edition

Brand Vol. % Change Total Sales 9/08 Total Sales 9/07 DSR % Change Daily Avg. 9/08 Daily Avg. 9/07
Acura -30.4% 9,997 14,369 -27.5% 417 515
Audi -5.4% 7,584 8,020 -1.5% 316 321
BMW -29.5% 14,744 20,901 -26.5% 614 836
Buick -20.5% 14,121 17,754 -17.1% 588 710
Cadillac -39.1% 12,432 20,398 -36.5 518 816
Chevrolet -11.2% 172,803 194,637 -7.5% 7,200 7,785
Chrysler -39.6% 23,346 38,668 -37.1% 973 1,547
Dodge -25.2% 62,572 83,671 -22.1% 2,607 3,347
Ford -33.8% 102,685 155,037 -31% 4,279 6,201
GMC -12.8% 39,029 44,754 -9.2% 1,626 1,790
Honda -23.2% 86,629 112,831 -20% 3,610 4,513
HUMMER -54.8% 2,298 5,080 -52.9% 96 203
Hyundai -25.4% 24,765 33,214 -22.3% 1,032 1,329
Infiniti -24.1% 7,779 10,250 -20.9% 324 410
Jeep -42.8% 21,431 37,460 -40.4% 893 1,498
Kia -27.8% 17,383 24,087 -24.8% 724 963
Lexus -36.1% 16,045 25,113 -33.4% 669 1,005
Lincoln -22.5% 7,571 9,764 -19.2% 315 391
Mazda -35.6% 16,169 25,098 -32.9% 674 1,004
Mercedes-Benz -16.4% 18,779 22,459 -12.9% 782 898
Mercury -43.2% 6,478 11,403 -40.1% 270 456
MINI -6.7% 3,762 4,031 -2.8% 157 161
Mitsubishi -39% 7,378 12,102 -36.5% 307 484
Nissan -38.4% 51,786 84,019 -35.8% 2,158 3,361
Pontiac -26.7% 23,324 31,817 -23.6% 972 1,273
Porsche -44.8% 1,458 2,641 -42.5% 61 106
Saab -27.2% 1,765 2,424 -24.2% 74 97
Saturn -10.8% 18,528 20,776 -7.1% 772 831
Subaru -11.9% 14,491 16,457 -8.3% 604 658
Toyota -31.8% 128,215 187,929 -28.9% 5,342 7,517
Volkswagen -9.4% 17,109 18,891 -5.7% 713 756
Volvo -51.8% 4,054 8,408 -49.8% 169 336
COMPANIES
BMW Group -25.8% 18,506 24,932 -22.7% 771 997
Chrysler LLC -32.8% 107,349 159,799 -30% 4,473 6,392
FoMoCo -34.6% 120,788 184,612 -31.8% 5,033 7,384
General Motors -15.8% 284,300 337,640 -12.3% 11,846 13,506
Honda America -24% 96,626 127,200 -20.9% 4,026 5,088
Nissan NA - 36.8% 59,565 94,269 -34.2% 2,482 3,771
Toyota Mo Co -32.3% 144,260 213,042 -29.5% 6,011 8,522
September 2008 had 24 selling days versus 25 selling days for September 2007


Some companies doing alot worse than others. GM really managed the unexpected though, thought they would be in alot more trouble than they are. Porsche is doing too well at all, in a way im glad, I hope they cant buy anymore VW shares as I dont want them to gain more power over VW, as all they want to do is take, but not give.

BMW say if things continue, they forecast that the company may head into the red numbers by the 2nd half of 2009.

Things are even worse for lexus, mainly due to the fact that they have a aged lineup, and that the US is their main market. Atleast the likes of BMW etc can redirect allocations to different markets.

Premium car manufacturers are now going to be concentrating less on the volume of vehicles they sell, but instead the amount of profit per vehicle made. I suppose premium cars are going to start becoming exclusive again over the next 2-3 years.

 

[buickgnx88]

Seems like companies such as Lexus should start making small luxury cars, such as a Lexus version of the Corolla. They have hybrids, but they are all big cars and they are so expensive nobody wants them. Heck BMW has the 1-series and possibly the X1, which are small and luxurious.

 

[homeforsummer]

VAG and the MINI brand don't seem to be doing too badly compared to the rest. And amusing to see Hummer's sales 50% down...

 

[forza2.0]

VAG and the MINI brand don't seem to be doing too badly compared to the rest. And amusing to see Hummer's sales 50% down...

They will probably be glad now that they havent got the massive market share in the US that they have longed for all these years. BMW and mercedes are alot more dependant on the US market than VAG, but not on a grand a scale as good ole lexus. Suppose toyota will bankroll them to keep em afloat during these hard times, thats as long as toyota isnt hit too hard themselves. Dont really know how toyota performs worldwide.

Makes sense now afterall why BMW wont make a M3 CSL and ford of europe are not yet "allowed" to make a fiesta ST.

 

[V1P3R]

Buick 20.5%? shouldn't that be unchanged... ?

 

[Joey D]

I was surprised the MINI actually dropped this time, in every by the numbers for almost as long as I can remember they at least had a small increase. Although MINI isn't delivering as many cars to the states so that could be part of it. Just a bad month all around and I don't really see it improving before years end.

 

[Jim Prower]

Well, no-one can get a loan. Banks can't approve them like they have been, since they're out of money. Will the bailout approved today help? I really don't know...

 

[YSSMAN]

Well, no-one can get a loan. Banks can't approve them like they have been, since they're out of money. Will the bailout approved today help? I really don't know...

Not just that, but the car dealers themselves can't get loans taken out to order the new cars in to sell to customers. As always, its a cyclical process.

=====

Suppose toyota will bankroll them to keep em afloat during these hard times, thats as long as toyota isnt hit too hard themselves.

Bad news Toyota fans, they introduced 0% financing on 11 models this afternoon. That is something Toyota never does. Thats when you know the proverbial "S" has hit the fan.

=====

We're looking at at least six months of this, if not worse. This could be the final choke-off for Chrysler, and surely, God knows what'll happen to those plans for Alfa Romeo or any of the other Euro brands that had discussed launching here in the near-future.

*que The Price is Right "fail" music...

 

[forza2.0]

That is weird as a toyota employee at the paris motorshow said that they werent gonna start any incentives to sell cars, as it would lower current customers resale values etc.

 

[Jim Prower]

Well, in Europe...remember, the recession's hitting US first. And, I'm guessing that was said earlier this week, before the proverbial excrement hit the fan.

 

[forza2.0]

Well, in Europe...remember, the recession's hitting US first.

I dont think they were talking about europe specifically at all, lower car sales is a world wide problem.

 

[Jim Prower]

Might be right...

I hate Wall Street.

 

[forza2.0]

BMW to lay off up to 733 temporary workers | GreenvilleOnline.com | The Greenville News

Sweden concerned that SAAB and volvo will hit bankruptcy soon.

BMW Internal forecast: If the crisis continues BMW AG may sail into red numbers deeply in the Q4 2009.

Stockholm - Volvo, the Swedish carmaker owned by Ford, is to shed a further 3,400 jobs mainly in its home base, the company said Wednesday, citing weaker sales in Europe and the United States.
The new cuts would affect some 2,000 blue-collar workers and 700 white-collar employees in Sweden, the company, which is owned by US carmaker Ford, said.
Combined with earlier announced job cuts, Volvo was to cut 6,000 employees, including 2,900 blue-collar workers, from its 25,000-strong workforce.
While job cuts will mostly impact operations in the Swedish west coast city of Gothenburg, an additional 600 Volvo employees outside of Sweden are to be made redundant.
In addition, contracts with some 700 consultants would be cancelled, the group said Wednesday.
'These are difficult times for the car industry in general, including Volvo. These actions are necessary to create a new and sustainable Volvo Car Corporation - a company with more focused operations and structure,' Volvo Car Chief Executive Stephen Odell said.
Odell added that 'the downturn in the global car industry is more drastic than expected.'
The carmaker earlier said it would reduce production by reducing night shifts. The carmaker is expected to sell 400,000 cars this year, compared to 457,000 in 2007.
Ford bought the Swedish brand in 1999.

 

[forza2.0]

If zooming fuel prices earlier this summer killed sales of pickups and SUVs, then the faltering economy and now the credit crisis have pretty much choked off sales of the remainder of the market. While August saw the pain spread to all major brands, save Infiniti, Mini, Nissan, Subaru, and VW, in September, every one of those holdouts found themselves underwater, too. The only nameplates to post gains in September were tiny niche players: Maserati (up 30%), Lotus (up by 3 cars - yes, 3), Lamborghini (by 2), and Rolls-Royce (by 1).

That's how bad September was. Or, to put it another way, it was the first month with fewer than 1 million cars and trucks sold since February 1993. This is no longer a Detroit problem; it's an industry-wide problem. Toyota, for example, suffered a 33% decline in sales. Honda was down 24%. Hyundai/Kia fell 26%.

GM almost looks good by comparison. Its market share, at 29.3%, was the best in over three years, thanks to employee pricing (even for some 2009 models). But it wasn't enough to keep the Hummer brand out of the sales basement, with an industry-worst 55% decline. And GM's captive finance arm, GMAC, has quietly followed the lead of Chrysler's finance unit, and all but stopped writing leases for GM products.

The brand that did best? Audi, which was off by only 5%.

The 5 Best Selling Vehicles for September were:

1. Chevy Silverado
2. Ford F-Series
3. Toyota Camry
4. Honda Accord
5. Honda Civic

The Silverado stays in the top spot, with the F-Series moving up from fourth to second place. Two pickups atop the heap looks more like normalcy, unless you're a Ford dealer, in which case nothing looks right unless the F-Series is number one. But at least it has pulled ahead of its passenger-car competition. And having the Camry and Accord outselling their smaller siblings, the Civic and (sixth-place) Corolla, is a return to the usual order in the U.S. automotive universe, and appears likely to remain that way, at least until the next gas-price shock.

For our in-depth look at what's selling and what isn't, the list of what isn't is so long that we've again had to raise the bar to include only sales drops of 50% or greater, except in special circumstances. And as for what's up, we're staying with upticks of 10% or better, and filtering out increases that can be counted on one's fingers.

WHAT'S DOWN [by 50% or worse]

The Hummer bummer continues.
H2 -66%
H3 -51%
GM probably wishes it had put this brand up for sale a year ago. Kind of like you wish you'd sold all the stocks and mutual funds in your retirement account a year ago.
Toyota FJ Cruiser -65%
Mercedes-Benz G-wagen -58%
As with the Hummers, these Tonka-like trucks have been forgotten, as buyers found something new to play with.

The SUV is no longer America's family car.
Ford Explorer -67%
Mercury Mountaineer -70%
Jeep Grand Cherokee -56%
Dodge Durango -78%
Chevy Tahoe -52%
GMC Yukon XL -54%
Toyota 4Runner -62%
Nissan Pathfinder -85%
Chevy Equinox -57%
Pontiac Torrent -56%
SUVs as a whole were still down more than any other group. They just had more company this month.

Two Jeeps too far.
Jeep Compass -65%
Jeep Commander -65%
Performing yet another monthly sales swan dive are Jeep's most ill-advised brand extensions from the go-go years when Dieter Zetsche was head of Chrysler, before he decamped for Germany to head up Daimler.

A hot August makes for a cold September.
Nissan Xterra -66%
Nissan Frontier -73%
Nissan Quest -83%
After an unnaturally fervid August - incentives, anyone? - these three Nissans collapsed in September.

Coupes falling out of fashion
BMW 6-series -64%
Scion tC -53%
Ford Mustang -52%
Mercedes-Benz CLK -51%

Suffering sports cars
Porsche Cayman -84% (and the Boxster and 911 just missed our cutoff)
BMW Z4 -66%
Honda S2000 -59%

There is no room at the margins.
Suzuki XL7 -78%
Subaru Tribeca -52%
Mitsubishi Raider -88%
Mitsubishi Endeavor -71%
Mazda Tribute -74%
Hyundai Veracruz -50%
Volvo S80 -56%
Volvo S40 -63%
Nissan Armada -64%
Infiniti QX56 -61%
Chrysler Aspen -66%
Lexus SC430 -57%
Chevy Uplander -84%
Lincoln Mark LT -52%
Isuzu I-series -56%
All of these models are marginal players in their field, and the tough times are having a disproportionate effect on them.

Miscellaneous laggards
Hyundai Tucson -65%
Ford Taurus X -64% (suffering in the switchover to the Flex)
Dodge Nitro -64% (born too late)
Toyota Tundra -61% (ambition thwarted)
Chrysler PT Cruiser -61% (once, there was a waiting list . . .)
Kia Sportage -58%
Mercury Sable -58%
Volvo XC90 -55%
Chrysler 300C -54% (see above)
Mercedes-Benz R-class -51% (the odd-duck Benz has been a laggard all year)
BMW 7-series -51% (slowing ahead of a redesign)
VW Passat -51%
Cadillac Escalades (all) -50%

Previously hot cars stumble.
The following models all had been running well ahead for the year to date, but in September they slipped backward. [This is the only instance where we're spotlighting declines of less than 50%.]

Volvo C30 -67%
Volvo can hardly afford any more bad news, and the C30 had been a bright spot.

Hyundai Elantra -49%
Kia Optima -36%
Kia Spectra -33%
Kia Rio -21%
The end of easy financing is bad news for brands like Hyundai and Kia, which have traditionally been home to lots of shaky-credit customers. The Elantra, though, had been riding high for much of this year, after a big endorsement from Consumer Reports.

Cadillac CTS -32%
Chevy Cobalt -17%
Saturn Aura -6%
Despite Employee Pricing, these GM cars declined. The CTS had been red hot, ever since last fall's successful redesign.

Honda Accord -36%
Honda Civic -13%
The Accord falters despite a relatively fresh redesign.

Nissan Altima -42%
Nissan Versa -12%
Toyota Yaris -4%
The Yaris slips just a bit, but it had been a darling back in the early summer, during the gas-price freakout.

Jeep Patriot -25%
The Patriot's slowdown started earlier, but it started off the year as a bright spot for acutely suffering Jeep dealers

WHAT'S UP [by 10% or better]

The allure of the new
Overall, the list of models enjoying a sales bump due to redesign is much shorter than in past months.
Lexus LX570 +265%
Toyota Land Cruiser +14%
In absolute numbers, the volumes of these off-roaders is still very small; interestingly, sales of the Lexus version now far outsells the Land Cruiser.

Dodge Viper +258%
Again, small volumes - 86 cars sold this September versus 24 last year - make for a huge percentage jump.

Pontiac Vibe +91%
Not just new, but also a fuel sipper, and Employee-Priced to boot

Suzuki SX4 +80%
The addition of a sedan body style makes the SX4 a much more viable player.

Honda Fit +43%
The smallest Honda continues to make big gains.

Subaru Forester +28%
Toyota Sequoia +22%
Mercedes-Benz C-class +12%

Employee-Priced GM cars
Buick Enclave +27%
Chevy Impala +17%
Chevy HHR +14%

Fuel sippers (some, anyway)
Far fewer are posting significant gains.
Mazda5 +27% (a fuel sipper for big families)
Pontiac G5 +23%
VW Jetta +14% (gets a TDI boost)

Fleet favorites
GMC Savana +117%
Chevy Express +37%
Lincoln Town Car +69%
Chevy Malibu +68%
The redesigned Malibu has been popular all year, but this month's increase is, unfortunately, due to an increase in fleet sales.

And two that are defying gravity
Hyundai Sonata +32%
Maserati (all) +30%

 

[Leonidae]

nice doublepost you have there.

 

[forza2.0]

nice doublepost you have there.

nice contribution to the topic you have made there

 

[Leonidae]

Someone has to keep up the quality.

 

[Perfect Balance]

I can definitely feel this drop too, I work at a Hyundai/Mitsubishi dealership and we have very little customers. For the past 2 months or so I've either been sent home or did things like sweeping floors and taking out trash. It sucks.

 

[niky]

Surprising that the Yaris and Rio are slipping... well, the Yaris, not so much... fuel sipper it may be, but with people downsizing and looking for practicality, the Honda Fit is in an excellent position to dominate the market... the Yaris is just... tiny... by comparison.

I'd said before, when the 350Z came out, that it was about time for a market crash... high powered cheap sportscars are like the Four Horsemen of the Apocalypse... they mean the market is approaching saturation point and is ready for a meltdown.

Seems my prediciton was off by a few years.

 

[Philly]

I am a little surprised that these numbers are so high. It makes me fear what this month's reports are going to be like. It is comforting to see that there are some cars making gains, but I doubt that'll last too long.

I am very surprised with the successes of the big Toyotas. Especially given the numbers their rivals posted up....

And niky, I don't think the market is just saturated. Or that it's approaching saturation point, rather. It just looks like (temporarily) the market has fallen way below what it was before.

 

[YSSMAN]

Keep in mind that Toyota threw a 0% financing cover on all of their cars about two/three weeks ago, so I'm certain that could drive forward some sales. Nevertheless, if people are worried about money that they currently have, the last thing they're going to want to do is buy a new car or truck. But, with gas prices falling flat, I'm certain that we'll see some stuff pick back up, but I'm most-certain that we won't see SUV sales increase whatsoever.

Now that I think about it...

Every car dealer here in Grand Rapids has all of their small, fuel-friendly cars lined up next to the road, the trucks mostly pushed off to the back (with one exception, a used car lot at Pontiac that is overflowing with Yukons and Explorers). Times have changed, because for a long time, they'd practically be parking the SUVs in the middle of the road for people to buy them.

 

[niky]

I am a little surprised that these numbers are so high. It makes me fear what this month's reports are going to be like. It is comforting to see that there are some cars making gains, but I doubt that'll last too long.

I am very surprised with the successes of the big Toyotas. Especially given the numbers their rivals posted up....

And niky, I don't think the market is just saturated. Or that it's approaching saturation point, rather. It just looks like (temporarily) the market has fallen way below what it was before.

Not saturation... it's just when you see a boom in sportscars and high-end supercars, you know that the market is teetering on the edge... of something.

Gas crises always seem to follow in the wake of performance renaissances... somehow. Just when it looks like the performance car market can't get any better... boom!... it won't.

 

[Philly]

Perhaps this has to do with sportscars not selling all that well unless people have the money to put into them, which isn't going to come unless the economy is doing well. So sportscars are just going to be an indicator of the economy, and when the economy is doing exceptionally well and relatively unstable, then you'll see a recession following it.

 

[harrytuttle]

Not saturation... it's just when you see a boom in sportscars and high-end supercars, you know that the market is teetering on the edge... of something.

Gas crises always seem to follow in the wake of performance renaissances... somehow. Just when it looks like the performance car market can't get any better... boom!... it won't.

It's not a coincidence, it's a symptom. The large increase in consumption of high-end luxury goods is almost always an indicator of a booming economy, often the the point of "irrational exuberance". The 60's (fading into the 70's muscle car peak), the 80's yuppie era (fading into the early 90's supercar boom), the 90's (fading into...now)...all are examples of this being a symptom. The car industry is just one of many that are subject to becoming fuel on the fire of consumer consumption. The electronics industry suffered the same ups & downs at the same time (hi-fi, then CD/home theater, now home automation).

What this translates to is that while the economy is growing out of control, raw materials experience a shortage. One of the first resources to come up short is fuel: increased demand for electricity, shipping, travelling, plastic products...all of which require oil. Everything depends on oil, and when everything starts using more of it at the same time, you get a shortage, which, if sustained, leads to a crisis.

Of course, it doesn't help that we've been ignoring the possible climatological effects for 40 years, either, but that's a whole different discussion.

 

[forza2.0]

Oct. 23 (Bloomberg) -- Daimler AG, the world's second- biggest maker of luxury cars, cut its full-year earnings forecast by 1 billion euros ($1.3 billion) after third-quarter profit fell short of analyst estimates on plunging auto sales.

Earnings before interest and tax will be more than 6 billion euros in 2008 compared with a previous forecast of at least 7 billion euros, Stuttgart, Germany-based Daimler said in a statement today. Net income last quarter was 213 million euros, missing analyst predictions for a profit of 818 million euros.

Daimler's earnings are under pressure as the global financial crisis and economic slowdown hurt demand for its upscale autos. Unit sales fell 6 percent at the Mercedes-Benz Cars division, sending Ebit down 92 percent to 112 million euros. The company said full-year group revenue may now show a ``slight decrease'' and suspended a share buyback to preserve cash.

``This is symptomatic of the dire straits that the auto industry finds itself in on a global scale,'' said Stephen Pope, the London-based chief global strategist at Cantor Fitzgerald. ``Automakers have no real price control and even at the luxury end consumers are spoiled for choice.''

Daimler fell as much as 2.13 euros, or 8.8 percent, to 22 euros in German trading before trading down 2.6 percent at 23.49 euros as of 12:24 p.m. in Frankfurt. The stock has declined 65 percent this year, giving a market value of 22.2 billion euros.

Revenue Drops

Third-quarter revenue fell 7 percent to 23.8 billion euros, also short of the 24.8 billion euros anticipated by analysts surveyed by Bloomberg News. Net income was equal to 21 cents a share, compared with a year-earlier loss of 1.53 billion euros, or 1.47 euros a share, when earnings were wiped out by costs from the disposal of a 80.1 percent stake in Chrysler LLC.

Daimler cut its earnings forecast hours after Fiat SpA, Italy's largest carmaker, forecast that net income may plunge as much as 85 percent next year if the global financial crisis continues to sap credit and depress auto demand.

Daimler's focus on luxury models has left it struggling to sustain sales as the credit crunch constricts customers' access to loans. At the same time, higher steel prices and spending on fuel-saving technology are adding to costs. The automaker has reacted by scaling back production by 45,000 cars and announcing plans to close two truck factories in North America.

`Very Challenging'

``We recognize that the situation is very challenging indeed,'' Daimler Chief Executive Officer Dieter Zetsche said in the statement. ``We press ahead consequently with our cost efficiency programs in all our businesses.''

Auto sales in the U.S., the company's biggest market after Germany, fell for an 11th straight month in September, dropping 27 percent in the steepest slide since 1991. European car sales slumped 8.2 percent in September as part of the market's worst decline since 2005.

Third-quarter earnings at Mercedes-Benz Cars were burned by a 449 million-euro charge for declining value of vehicles returned from lease. The unit is now aiming for full-year earnings of 2.5 billion euros, giving an estimated return on sales of 5 percent, down from a previous target of 8 percent.

``The report doesn't surprise me after all the nightmare news of the past few weeks,'' said Juergen Meyer, a Frankfurt- based fund manager with SEB Asset Management, who holds Daimler shares. A 5 percent profit margin at Mercedes is ``in this environment still an enviable target.''

Daimler's van and bus unit reported a 100 million-euro loss for the quarter compared with a 319 million-euro profit. Of the company's manufacturing divisions, only trucks showed an improvement in earnings, with Ebit increasing 6 percent to 510 million euros.

Chrysler Drag

Daimler's remaining 19.9 percent stake in Auburn Hills, Michigan-based Chrysler still dragged Ebit down by 351 million euros, including restructuring charges and writedowns on vehicles leased out by the third-largest U.S. automaker.

Daimler has been in talks with Chrysler's majority owner, Cerberus Capital Management LP, about selling the buyout firm the last of its holding. Cerberus, in turn, has been in talks with Detroit-based General Motors Corp. about a merger or partnership with Chrysler, people familiar with the talks have said. A sale by Daimler would end a 10-year relationship that that cut the German company's market value by $12.6 billion.

Additional Costs

Daimler's lower profit outlook for this year doesn't include Chrysler-related expenses, costs from 3,500 job losses at the North American truck division, expenses from management changes, or 818 million euros in charges from revaluing leased vehicles. The target also excludes 569 million euros in gains from the sale of real estate in Berlin.

Suspension of the 6 billion-euro share buyback program may mean the company falls short of repurchasing the targeted 10 percent of stock by next April, it said today.

Turin-based Fiat said earlier that net income may fall to as little as 400 million euros in 2009 if demand drops 20 percent. That compares with a forecast profit of 2.6 billion euros this year. Third-quarter profit rose 1.9 percent to 440 million euros, buoyed by sales of autos, tractors and combine harvesters to emerging markets.

Every company is struggling right now. 2009 is going to be such a headache and we are still 2 months away.

In early November BMW AG are to announce "more than 40%" plunge in net income ... Ouch!

As said: internal forecasts predict red numbers in total for BMW AG in late 2009 ... if the crisis continues.

Not good, not good ...

Btw ... we are about to see blue-chip fall down ... Due to almost dead credit market many companies have no access to new credits to refinance the old ones, to buy raw materials etc. Governments are trying to do everything to start the credit wheel again. Even some direct subventions to certain big companies are possible. The last possible solution - to save the big companies from bankruptcy - is the nationalization.

I'm pessimistic ... I'm afraid the world is heading towards socialism without even wanting that. Was Marx right after all? Socialism as the final phase of the world economic order? This time will progress to it naturally ... without revolutions. How ironic.

I'm sure we're about to see some major shifts in capital (re)distribution.

The new era is coming.

Speaking of Chrysler:

Daimler AG, the German company that once owned all of Chrysler and now owns 19.9 percent, depreciated its stake in the Auburn Hill, Michigan, automaker from $268 million at the end of the second quarter of 2008 to $0, from an accounting standpoint, yesterday. Just over a year ago, Daimler said its nearly 20 percent share was worth $2.2 billion.

Daimler did say it plans to continue negotiations with Cerberus Capital Management over the remaining share of Chrysler, though it’s unclear how this latest announcement will affect the transaction.

“The pain level must be extraordinary over there — Cerberus and Chrysler and Daimler. You can just imagine how tortured they are,” Gerald Meyers, a University of Michigan business professor and former American Motors chairman, told the Detroit Free Press.

Despite Chrysler’s recent woes - which have been epic, even by Detroit auto industry standards - the company has burned through far less cash in the first half of this year than its two chief hometown rivals. Chrysler’s automotive and finance businesses lost $1.17 billion, whereas Ford Motor Company lost $8.6 billion and General Motors lost $18.7 billion.

 

[YSSMAN]

Just a thought on BMW:

I believe I read yesterday that they're doing 0.9% financing on all of their 2009 models, which seems a bit abnormal. Can't be good, can't be good at all.

 

[Joey D]

Damn, .9%? I got hosed with my 5.something percent.

 

[Philly]

Just a thought on BMW:

I believe I read yesterday that they're doing 0.9% financing on all of their 2009 models, which seems a bit abnormal. Can't be good, can't be good at all.

They were offering 0.9% percent on something, but I think it's purpose was just to clear out the 2008 models.

The socialism bit was interesting. It seems that everybody jumps on the socialism bandwagon in recessions...

 

[forza2.0]

Just a thought on BMW:

I believe I read yesterday that they're doing 0.9% financing on all of their 2009 models, which seems a bit abnormal. Can't be good, can't be good at all.

Nope not so good. Especially considering alot of bmw's demographic are customers who tend to lease vehicles, and leasing isnt so profitable for BMW anymore.

Funnily enough VAG were the only major manufacturer, with vw and audi in particular who continued to grow in september.

 

[homeforsummer]

Daimler-AG may be struggling as a whole, but combatting the trend (in contrast to it's historical figures) is smart (finally):

smart cars continue to sell in weak market

smart cars have continued to be a success story this year by being one of the few vehicles to enjoy a solid September as sales in new cars suffered a major slump.

In a month in which sales figures are typically good as new car registration plates enter the market, the smart continued to see its sales increase.

The small, eco-friendly vehicle saw sales improve by almost ten per cent on last September while witnessing a 78 per cent improvement in the year to date.

In comparison with last year, sales in smart are up 101.9 per cent, with 5,929 vehicles sold in the UK in 2008, a stark rise on the 2940, sold at this stage last year.

"Along with the new-generation smart fortwo electric drive, we also presented the first hybrid production car from Mercedes-Benz in September," said Dr Klaus Maier, executive vice president of sales and marketing at Mercedes-Benz Cars.

One of the leading traits of the smart car is that it is short enough to achieve nose-in parking, allowing two or three of the vehicles to fit into a space generally taken up by one car.

One of the leading smart vehicles is the smart fortwo, which recently surpassed sales figures of 100,000 units.

http://news.thesmart.co.uk/index.ph...art-cars-continue-to-sell-in-weak-market.html

I'm unsure on smart's most recent profit/loss figures (when I was doing my dissertation on the company they'd dropped the roadster and forfour only months before and were only a small amount of time away from breaking even... though that was before the recession) but if ever there's an example of the trend for downsizing it's smart sales being up over 100% on the previous year.

Personally I think it's great news - maybe they'll bring back a Roadster model... well, we can always hope!