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Thread: August Auto Sales defy consumer caution

  1. #1
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    August Auto Sales defy consumer caution

    Two statistics based articles from REUTERS.
    Both have interesting data, both with warnings to not try to over-read into it:

    August Auto Sales defy consumer caution

    "(Reuters) - Auto sales rose slightly in August from a month earlier, defying forecasts for a slowdown in a month that began with a plunge on Wall Street and ended with an East Coast hurricane.
    Detroit automakers posted double-digit percentage gains from year-earlier sales, helped by stronger sales of newer small cars like the Chevrolet Cruze and more fuel-efficient SUVs including the Ford Escape.


    But shares of both General Motors Co and Ford Motor Co closed lower, and analysts cautioned that the Detroit Three could face a payback in the months ahead as their major Japanese rivals fight to make up for lost ground.

    GM reported a sales gain of 18 percent from year-earlier levels. Ford sales were up 11 percent. Chrysler had its best August sales in four years with a 31 percent sales increase.


    "The auto sales numbers were comforting. The message here is that we're not facing a double dip. On the other hand, we're not sprinting ahead either," said Paul Ballew, chief economist with insurer Nationwide. "The industry is crawling."


    GM shares closed down 4.2 percent at $23.03 on Thursday, while Ford shares closed down 2.4 percent at $10.85.


    Sales for Nissan Motor Co rose 19 percent. Sales for Volkswagen AG were up 10 percent
    The slow month for Toyota allowed Chrysler, controlled by Fiat, to overtake the Japanese company for the No. 3 spot in the U.S. market for the month."





    Factory, jobs data temper recession fears

    "(Reuters) - Manufacturing unexpectedly grew in August and fewer Americans filed new claims for jobless aid last week despite a slump in confidence that threatened to push the economy back into recession.

    Other data on Thursday showed little signs of consumers hunkering down in response to the collapse in confidence. Major automakers posted sturdy gains in domestic sales in August from a year ago and consumers shopped for an array of goods last week.


    The reports were the latest in a series to suggest the economy remained on a slow-growth path and offered hope it would dodge a recession.


    "I am breathing a little sigh of relief that the bit of data that we have had over the course of August is weak but not giving the recessionary type of signal," said Stuart Hoffman, chief economist at PNC Financial Services in Pittsburgh.


    More light will be shed on the health of the world's largest economy when the government releases its closely watched employment report for August on Friday."


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    Just want to remind that Obama bailed out the Auto Industry, which has already paid back its debt.

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    Ford never accepted TARP money. I'm glad to see that Ford did well, though August typically is a good month in the car business anyway.

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    Quote Originally Posted by Gypsy View Post
    Ford never accepted TARP money. I'm glad to see that Ford did well, though August typically is a good month in the car business anyway.
    True and True.

  4. #4
    King Obama is a traitor! michaelr's Avatar
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    Quote Originally Posted by bonncaruso View Post
    Two statistics based articles from REUTERS.
    Both have interesting data, both with warnings to not try to over-read into it:

    August Auto Sales defy consumer caution

    "(Reuters) - Auto sales rose slightly in August from a month earlier, defying forecasts for a slowdown in a month that began with a plunge on Wall Street and ended with an East Coast hurricane.
    Detroit automakers posted double-digit percentage gains from year-earlier sales, helped by stronger sales of newer small cars like the Chevrolet Cruze and more fuel-efficient SUVs including the Ford Escape.


    But shares of both General Motors Co and Ford Motor Co closed lower, and analysts cautioned that the Detroit Three could face a payback in the months ahead as their major Japanese rivals fight to make up for lost ground.

    GM reported a sales gain of 18 percent from year-earlier levels. Ford sales were up 11 percent. Chrysler had its best August sales in four years with a 31 percent sales increase.


    "The auto sales numbers were comforting. The message here is that we're not facing a double dip. On the other hand, we're not sprinting ahead either," said Paul Ballew, chief economist with insurer Nationwide. "The industry is crawling."


    GM shares closed down 4.2 percent at $23.03 on Thursday, while Ford shares closed down 2.4 percent at $10.85.


    Sales for Nissan Motor Co rose 19 percent. Sales for Volkswagen AG were up 10 percent
    The slow month for Toyota allowed Chrysler, controlled by Fiat, to overtake the Japanese company for the No. 3 spot in the U.S. market for the month."





    Factory, jobs data temper recession fears

    "(Reuters) - Manufacturing unexpectedly grew in August and fewer Americans filed new claims for jobless aid last week despite a slump in confidence that threatened to push the economy back into recession.

    Other data on Thursday showed little signs of consumers hunkering down in response to the collapse in confidence. Major automakers posted sturdy gains in domestic sales in August from a year ago and consumers shopped for an array of goods last week.


    The reports were the latest in a series to suggest the economy remained on a slow-growth path and offered hope it would dodge a recession.


    "I am breathing a little sigh of relief that the bit of data that we have had over the course of August is weak but not giving the recessionary type of signal," said Stuart Hoffman, chief economist at PNC Financial Services in Pittsburgh.


    More light will be shed on the health of the world's largest economy when the government releases its closely watched employment report for August on Friday."


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    Just want to remind that Obama bailed out the Auto Industry, which has already paid back its debt.
    No they haven't. They borrowed from one fund to pay the other.

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    Quote Originally Posted by michaelr View Post
    No they haven't. They borrowed from one fund to pay the other.
    Ford did not request or receive TARP. I don't know about GM.

  6. #6
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    Quote Originally Posted by Gypsy View Post
    Ford did not request or receive TARP. I don't know about GM.
    GM received money, with Chrysler combined, 17.4 billion.

    "Aug 29 2011
    In December 2008, the Big 3 auto companies asked the government for a $34 billion bailout to avoid bankruptcy. The Big 3 stated that their demise would trigger 3 million layoffs within a year, plunging the economy further into recession.

    In January 2009, the government used $24.9 billion of the $700 billion bailout fund to bail out two of the Big 3 :

    $17.4 billion for General Motors and Chrysler.
    $6 billion for GMAC.

    $1.5 billion for Chrysler Financial.

    The purpose of the loans was to provide operating cash for GM and Chrysler, and to keep making auto loans available for car buyers. Ford Credit planned to use funds from the Term Asset-Backed Securities Loan Facility (TALF),a government program for auto, student and other consumer loans.

    Many opposed the bailout, saying U.S. automakers brought their near-bankruptcy on themselves by not retooling for an energy efficient era, reducing their competitiveness in the global market.

    Auto Bailout Specifics

    The auto bailout proposal from the Big 3 auto companies totaled $34 billion in government loans. In return, the companies promised to fast-track development of energy-efficient vehicles, and consolidate operations. GM and Ford agreed to streamline the number of brands they produced. They also won agreements from the UAW union to delay contributions to a health trust fund for retirees and reduce payments to laid-off workers. The three CEO's agreed to work for $1 a year and sell their corporate jets.

    GM's Bailout

    GM received $6 billion through GMAC, which became a bank holding company. GM asked for $18 billion in loans, of which $4 billion was needed to avoid bankruptcy before the end of 2008. In return, GM agreed to give the government warrants for common stock, preferred stock, and a promise to repay the loan in 2012, when it anticipates it will again break even. GM pledged to cut its debt by $30 billion by converting debt ownership for equity. It agreed that union health-care benefits would be paid to retirees in 2010. It promised to sell its Saab, Saturn and Hummer divisions, reducing the number of models for sale to 40. It would reduce employment from 96,000 to 45,000 by 2012. (Source: Bloomberg, Chrysler Financial to Get $1.5 Billion to Aid Car Sales, January 19, 2009) "

    -------------------------------


    In April 2010, GM had already paid back it's loans in FULL.

    Reason.com disagrees. Reason.com is a libertarian website, to note.

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  7. #7
    Veteran Member Moorhuhn Wanted Champion Hollywood's Avatar
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    Quote Originally Posted by bonncaruso View Post
    Two statistics based articles from REUTERS.
    Both have interesting data, both with warnings to not try to over-read into it:

    August Auto Sales defy consumer caution

    "(Reuters) - Auto sales rose slightly in August from a month earlier, defying forecasts for a slowdown in a month that began with a plunge on Wall Street and ended with an East Coast hurricane.
    Detroit automakers posted double-digit percentage gains from year-earlier sales, helped by stronger sales of newer small cars like the Chevrolet Cruze and more fuel-efficient SUVs including the Ford Escape.


    But shares of both General Motors Co and Ford Motor Co closed lower, and analysts cautioned that the Detroit Three could face a payback in the months ahead as their major Japanese rivals fight to make up for lost ground.

    GM reported a sales gain of 18 percent from year-earlier levels. Ford sales were up 11 percent. Chrysler had its best August sales in four years with a 31 percent sales increase.


    "The auto sales numbers were comforting. The message here is that we're not facing a double dip. On the other hand, we're not sprinting ahead either," said Paul Ballew, chief economist with insurer Nationwide. "The industry is crawling."


    GM shares closed down 4.2 percent at $23.03 on Thursday, while Ford shares closed down 2.4 percent at $10.85.


    Sales for Nissan Motor Co rose 19 percent. Sales for Volkswagen AG were up 10 percent
    The slow month for Toyota allowed Chrysler, controlled by Fiat, to overtake the Japanese company for the No. 3 spot in the U.S. market for the month."





    Factory, jobs data temper recession fears

    "(Reuters) - Manufacturing unexpectedly grew in August and fewer Americans filed new claims for jobless aid last week despite a slump in confidence that threatened to push the economy back into recession.

    Other data on Thursday showed little signs of consumers hunkering down in response to the collapse in confidence. Major automakers posted sturdy gains in domestic sales in August from a year ago and consumers shopped for an array of goods last week.


    The reports were the latest in a series to suggest the economy remained on a slow-growth path and offered hope it would dodge a recession.


    "I am breathing a little sigh of relief that the bit of data that we have had over the course of August is weak but not giving the recessionary type of signal," said Stuart Hoffman, chief economist at PNC Financial Services in Pittsburgh.


    More light will be shed on the health of the world's largest economy when the government releases its closely watched employment report for August on Friday."


    ----------------------------------------------------------------------------

    Just want to remind that Obama bailed out the Auto Industry, which has already paid back its debt.
    Wow, and it only took the Big Three 35 fucking years to effectively respond to the competition threat from the foreign car-makers.

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    Quote Originally Posted by Hollywood View Post
    Wow, and it only took the Big Three 35 fucking years to effectively respond to the competition threat from the foreign car-makers.
    I think you have a valid point. The japanese made it very clear in the 70s that they wanted to scoop the market. The germans are forced to be mega-efficient with mileage, otherwise, no german will buy their cars. So, I would say 50 /50: the public gets what the public generally wants.

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