Ford’s March U.S. Sales Fell 41% as Job Losses Rose

[Purveyor]

Source: Bloomberg

April 1 (Bloomberg) -- Ford Motor Co.’s U.S. sales plunged 41 percent in March, the 16th straight monthly decline, as job losses mounted and consumer confidence remained low.

Deliveries of cars and trucks fell to 131,465 from 222,337 a year earlier, the Dearborn, Michigan-based company said today in a statement. The drop was smaller than the 45 percent average estimate of 7 analysts surveyed by Bloomberg.

Ford’s results signal another month of shrinkage in an auto market that last grew in October 2007. Dwindling demand dims the turnaround hopes of General Motors Corp. and Chrysler LLC, which have been told by President Barack Obama to “fundamentally restructure” or lose the federal loans keeping them alive.

“I don’t know how we are approaching the bottom now if we are going to have two companies in bankruptcy in 30 and 60 days,” said John Wolkonowicz, an IHS Global Insight Inc. analyst in Lexington, Massachusetts. “I don’t think the bottom is around the corner.”

--CLIP
Analysts’ Estimates

GM will say today that sales slumped 48 percent, while Chrysler will report a 46 percent drop, based on the average estimates of seven analysts surveyed by Bloomberg. Toyota Motor Corp. may slide 41 percent, and Honda Motor Co. and Nissan Motor Co. will tumble 42 percent, according to four analysts.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=aMUiJb82yotI

[phantom power]

1. This is the problem. No amount of bailout $$ can get people to buy more cars.

Pushing on a string.

Spend federal money on the demand side.

[Cali_Democrat]

3. Correct

The problem is not with supply, we have enough supply. The problem is with demand which has collapsed.

This is why the Repukes latest budget proposal is such a joke. As if tax cuts for the wealthy and big business is going to spur economic growth.

Lets say we do give tax cuts to the wealthy and they are able to produce more goods and services....well who the hell is gonna buy those goods and services?

[phantom power]

4. Another problem we may have...

is that there seems to be an assumption about the need/desirability of preserving auto industry jobs, when it may make a lot more sense to think in terms of preserving manufacturing jobs. The auto industry may never regain its peak size, and arguably it shouldn't. But a stimulus package could stimulate manufacturing in other badly-needed areas. Rail transportation, water transportation, bus and light-rail transit, non-fossil energy infrastructure, electrical grid upgrades, etc.

People badly need jobs. But they don't necessarily have to be jobs making cars. It might be better if they weren't.

[xchrom]

2. rising job losses will do that to things like car sales.

maybe those bankers that got to keep their jobs can go and buy a bunch of cars.

they have our money after all.

[Festivito]

5. The rest of the country now catching the cold we've had for years.

I hope they can get through it as well as we did.

[Purveyor]

6. Well we Michiganders are certainly experienced in the 'art of survival' during a recession however

this one is a 'doozy', indeed!!!

Godspeed to all...

[sarcasmo]

7. You are not kidding, I have a new love affair with Tina, that is Tina's burritos.

Working on cutting back and cutting back some more. Tina's burritos are 59cents and two with a slice of cheese make a cheap dinner, healthy? probably not.