U.S. auto sales plunge

[Lunican]

U.S. auto sales plunge

NEW YORK (CNNMoney.com) -- Sales at the nation's top automakers fell sharply in September, as tighter credit for buyers and dealers combined with high fuel prices resulted in industrywide U.S. sales falling below the 1 million mark for the first time in more than 15 years.

The sales declines were broad based, with Japanese automakers reporting the same kind of double-digit declines that hit U.S. brands earlier this year when the record gasoline prices sent buyers scurrying from SUVs and pickups to more fuel efficient car models. Overall Asian brands saw a 31% drop in sales, more than the 24% drop among traditional domestic brands.

http://money.cnn.com/2008/10/01/news/companies/autosales/index.htm

[uptowngirl]

Maybe they will start making decent cars again for a decent price? Maybe better fuel consumption or more alternative fuel cars?

I have a hard time supporting the dinasaur on this one. They have made minimal changes (other than fashion and government saftey/emissions requirements) in a looooonnnnngggg time. I mean heck, even McDonalds has a "healthy menu" now, and what Ford brought back a gas guzzling mustang?

[Lunican]

This article focuses on an industry-wide decline in sales, not just American manufacturers. Asian manufacturers saw a 31% drop.

[uptowngirl]

I hear ya, and I read it. I think they can all be lumped in together.

Why does MBZ have a car that gets 60+ gallons to the mile but is not on the market? Why is anyone spending 150K on a car? Why does a prius cost as much as down payment on a house? Autos have been declining for a while, the economy now is just the nail in the coffin (imo).

[Beloki]

On the bright side: bicycle sales are up 300%

[Doctor_K]

Maybe they will start making decent cars again for a decent price? Maybe better fuel consumption or more alternative fuel cars?

I have a hard time supporting the dinasaur on this one. They have made minimal changes (other than fashion and government saftey/emissions requirements) in a looooonnnnngggg time. I mean heck, even McDonalds has a "healthy menu" now, and what Ford brought back a gas guzzling mustang?

Not to disagree, but consider this:

1.  All of the emissions standards that have been forced upon the auto industry over the years (a good thing, don't get me wrong, but still essentially forced-upon) have significantly cut the per-auto emissions and thus have increased efficiency of the engines, even if the MPG has not improved.  Engine efficiency is not the same as fuel efficiency.

2.  The technology for lots of features has improved dramatically over the years, from automatic transmission to computer timing to engine tuning to the assembly process itself.  Plus the whole 'green' movement to reduce auto plants' carbon footprint.  All of that is rolled up into the end-price of a vehicle.

3.  Also, four words: "Built-in Navigation System."  That's huge. 

4.  And Ford has Sync.  Other brands have Bluetooth.

5.  And there are marketable hybrids.

6.  OnStar.

7.  Airbags.  And not only airbags, but 2nd-generation, partial-inflation airbags.

8.  Crumple zones

9.  Airbag curtains.

10.  100,000 miles before your first tune-up is necessary.  Back in the day, even before my time, you couldn't say that without being laughed at for being a lunatic.

And on and on.  Again, not meaning to be argumentative.  I'm just pointing out that there are actually tons of improvements that have been made, even in the last decade, that weren't around or were unheard of before now.  It's not like we're all still driving around in those crappily-made old Beetles or Tercels or Yugos or AMC Eagles or what have you.  Don't sell the auto industry - foreign or domestic - short.

As for the Prius?  You're paying for all the technology that's packed into that car.  Plus there's a huge demand for those 'pure' hybrids.  Right now, Toyota's got the only one on the market like that.  The Honda is reintroducing the Insight soon, so the Prius will finally get some true competition. 

Technically, a down-payment of a house should be way MORE than a Prius, but since we're all currently swimming in the backwash of 0-down-payments and interest-only loans and subprime mortgages, that's not the case.

[uptowngirl]

Maybe they will start making decent cars again for a decent price? Maybe better fuel consumption or more alternative fuel cars?

I have a hard time supporting the dinasaur on this one. They have made minimal changes (other than fashion and government saftey/emissions requirements) in a looooonnnnngggg time. I mean heck, even McDonalds has a "healthy menu" now, and what Ford brought back a gas guzzling mustang?

Not to disagree, but consider this:

1.  All of the emissions standards that have been forced upon the auto industry over the years (a good thing, don't get me wrong, but still essentially forced-upon) have significantly cut the per-auto emissions and thus have increased efficiency of the engines, even if the MPG has not improved.  Engine efficiency is not the same as fuel efficiency.

2.  The technology for lots of features has improved dramatically over the years, from automatic transmission to computer timing to engine tuning to the assembly process itself.  Plus the whole 'green' movement to reduce auto plants' carbon footprint.  All of that is rolled up into the end-price of a vehicle.

3.  Also, four words: "Built-in Navigation System."  That's huge. 

4.  And Ford has Sync.  Other brands have Bluetooth.

5.  And there are marketable hybrids.

6.  OnStar.

7.  Airbags.  And not only airbags, but 2nd-generation, partial-inflation airbags.

8.  Crumple zones

9.  Airbag curtains.

10.  100,000 miles before your first tune-up is necessary.  Back in the day, even before my time, you couldn't say that without being laughed at for being a lunatic.

And on and on.  Again, not meaning to be argumentative.  I'm just pointing out that there are actually tons of improvements that have been made, even in the last decade, that weren't around or were unheard of before now.  It's not like we're all still driving around in those crappily-made old Beetles or Tercels or Yugos or AMC Eagles or what have you.  Don't sell the auto industry - foreign or domestic - short.

As for the Prius?  You're paying for all the technology that's packed into that car.  Plus there's a huge demand for those 'pure' hybrids.  Right now, Toyota's got the only one on the market like that.  The Honda is reintroducing the Insight soon, so the Prius will finally get some true competition. 

Technically, a down-payment of a house should be way MORE than a Prius, but since we're all currently swimming in the backwash of 0-down-payments and interest-only loans and subprime mortgages, that's not the case.

I stand corrected!

[RiversideGator]

This is a great time to buy a new car, BTW.  You can get a new American car for 25% off basically with good financing on top of that.

[RiversideGator]

I hear ya, and I read it. I think they can all be lumped in together.

Why does MBZ have a car that gets 60+ gallons to the mile but is not on the market? Why is anyone spending 150K on a car? Why does a prius cost as much as down payment on a house? Autos have been declining for a while, the economy now is just the nail in the coffin (imo).

Another reason why the Prius costs so much is that every idiot and his sister is trying to buy one so the dealers are tacking on surcharges of up to $5000 on top of the MSRP.  I wonder if it occurred to the buyers that the savings in fuel costs are offset by the additional costs for the vehicle (to say nothing of the fact that you then have to drive around in the little dangerous car which looks silly and has little storage room in it).

[Doctor_K]

This is a great time to buy a new car, BTW.  You can get a new American car for 25% off basically with good financing on top of that.

If dealers even throw in a 0% APR financing, that's a golden opportunity indeed.  Only way I'll buy a new car is if I can get me a 0.0%.