SubscribeAs Predicted Cash for Clunkers Ends, Cars Sales Crash
Yahoo: “It was a more difficult month than we anticipated,” Mark LaNeve, GM’s vice president of U.S. sales, told reporters during a conference call.”
The September slump for car and truck makers follows a heady summer. Automakers got a big lift in July and August from the government’s Cash for Clunkers program, which spurred sales of nearly 700,000 new vehicles. The program’s big discounts lured in many customers who otherwise would have waited until later in the year to walk into dealerships.
Now automakers are starting to feel the effect. GM’s sales plunged 45 percent to 155,679 vehicles in September, compared with a year earlier. Chrysler sold only 62,197 vehicles last month, down 42 percent.
My comment: So what is next in the governments bag of tricks? The government is the only entity in the mortgage market. When the $8000 first time home buyer tax credit expires what will happen to already falling home prices and home sales? The stockmarket is not liking this news as this bodes ill for the so called “V” shaped recovery everybody was touting. Except for some unique speculations I would advise lightening up on stocks as the double dip recession is on the way.
John Polomny
The Real Deal
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Comment by C4C on 4 October 2009:
You’re right, the “hangover” was completely predictable. So was the decrease in auto repairs and car donation and the increase in used car prices.