U.S. Sales ‘Open Up’ on Aid to GM, Chrysler Loan Arms

[Barack_America]

Source: Bloomberg

April 6 (Bloomberg) -- U.S. sales are “starting to open up” as $7.5 billion in aid to the lending arms of General Motors Corp. and Chrysler LLC eases a loan logjam for buyers that helped drag the industry to its worst slump since 1981.

The automakers’ sales declined less than analysts expected in March after GM affiliate GMAC LLC received $6 billion from the U.S. Treasury in December, allowing it to loosen lending standards, and Chrysler Financial Corp. got $1.5 billion in January to foster borrowing for retail transactions.

Tight credit had combined with low consumer confidence to slash new-vehicle purchases. While it’s too soon to expect a robust recovery, dealers and others say, the federal support is helping stabilize the industry.

<snip>

The better-than-expected sales may be “strong signs, in our view, that car sales have reached a bottom,” Himanshu Patel, a JPMorgan Chase & Co. analyst in New York, wrote in a report today. While markets could be rattled by a GM or Chrysler bankruptcy, “it may be time” for investors to consider buying auto stocks, he wrote. He rates GM as “neutral.”

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

---

Looks like all of the Big3 experienced 'better than expected' sales in March.

The article also seems to indicate that bank lending too is starting to increase.

[barbtries]

1. this sounds like good news.

i want a PT Cruiser when/if i get enough money. don't want them to sink out of sight, or out of business.

[Barack_America]

2. It certainly does.

The Big 3 are also applying for enormous grants from the DOE for the development of fuel-efficient cars. It sounds to me like this is how the Obama administration actually intends to "bail out" the auto industry.

http://uk.reuters.com/article/marketsNewsUS/idUKN0640319920090406

[tomm2thumbs]

3. a convertible?

[barbtries]

11. why?

do you have one? i don't need a convertible, but it must be a 5 speed, i want a sunroof at least, and prefer the color white. :)

[Barack_America]

12. I once rented a convertible PT Cruiser.

I really liked it.

[DJ13]

4. Better hurry on the PT Cruiser

Chrysler is ending its production.

[Barack_America]

5. Really?

I hadn't heard that.

I like the PT Cruiser too.

[DJ13]

14. Chrysler PT Cruiser production to end this summer

http://www.autoblog.com/2009/01/15/chrysler-pt-cruiser-production-to-end-this-summer/

[barbtries]

10. crap

i'll be in the market for a used one regardless. but if they're phasing them out - well, just crap.

[bluestateguy]

6. Some of the auto co's problems are because of tighter credit

Yes the companies have made bad decisions and bad business models, but it's not like NO ONE is in the market for a car. Many people are but they cannot get a loan because the damn banks are being miserly bastards.

[Barack_America]

7. Of course. That was the point of the article.

That the lending is loosening up. We'll just have to see if that holds.

[defendandprotect]

8. I'm seeing a lot of new cars in and around my town . . .

and think that used car sales from dealers are also up/?

[Barack_America]

9. To my dismay, I'm seeing a ton of new Hummers in my area.

And also light blue Priuses, for some reason.

[defendandprotect]

13. Definitely light blue Priuses! A lot of SUV's ... haven't seen any Hummers . . . .

My sister bought a used/06 Kia.

[fasttense]

15. I don't believe it.

Loans have never been a problem. I can get as many loans as I want and my husband is unemployed. Loans have only been a problem for big corporations, not for the average guy.

For the average guy, it is a Job to pay off the loan that's the REAL problem.

It's a fake out that Wall Street/bankers/insurance use to make you believe that their problems are your problems. It's a lie. People have not been buying cars because they have no money. This is just a bump. Pent up demand leaking out on the edges.