Death Watcher that I am, even I’ve lost track of all the excuses Ford, GM and Chrysler have used to explain declining sales vis a vis the transplants and the market in general. Let’s see… currency manipulation, reduced fleet sales, unforseen rise in gas prices, Mars in retrograde, etc. Here’s the next one: consumer anxiety re: Wall Street. “All businesses are operating in a world of ambiguity,” Ford’s chief sales analyst George Pipas told Reuters. Tell that to the repo men. Anyway, FoMoCo is preparing the mainstream media/stock holders/camp followers for the worst. “Industrywide auto sales in September to date have extended the weakness seen in July and August,” Pipas said, adding that “financial market volatility makes it hard to forecast results for the remainder of the month.” I’ve got a prediction: down. And, IMHO, Wall Street’s not to blame. Much.
Find Reviews by Make:
Read all comments
The expression on the guy’s face says: ” I’m a constipated – brain damaged liar – and – this ain’t my smile… “
Last time I checked, people who work on Wall Street drive BMWs and Mercedes… not Pontiacs and Mercurys.
Guess what GM, Ford and Chrysler: We’re coming back to reality, and the American people can’t afford all of the shit that you make. Time to restructure (Chap. 11) and make less shit.
You know why consumers aren’t confident? Because the payments are starting to adjust on the cash-out adjustable rate mortgage refi that they used to buy an Escalade (Plummetade?) or H2.
To encourage risk taking the US has some of the most business friendly bankruptcy laws in the world; since your risks were stupid and ruined your companies it’s time for you to take advatage of them.
I’m waiting for “the sun was in our eyes.”
Cash out re-financings, home equity lines of credit and subvented leases were a few of the ways Americans had grown accustomed to using to live beyond their means. With all of those pretty much off the table there are indeed big consequences for auto/truck makers. Just how many people who were buying $30k-$60k loaded up trucks really were in a position to afford them out of their own free cash flow? Those vehicles were the heart and soul of Detroit’s profit machine. Sure Toyota & friends also snacked at the pig trough, but Detroit was uniquely wedded to that market as it’s only real source of gross profits.
All of which is a long winded way of saying that the financial market melt-down is indeed putting a big hurt on Detroit.
GM, Ford and Chrysler: The pursuit of deflecting responsibility and assigning blame to anyone but themselves. Hey, at least this guy isn’t blaming the customers. Oh wait…
More obfuscation and denial from Detroit. It’s not just Wall Street, although those arrogant, greedy bastards have made things worse.
Unfortunately for Detroit, the US has been living well beyond its means for many years, on both the individual and national level – buying big houses, big vehicles, having exciting and expensive adventures like the war in Iraq, and generally sustaining the standard of living by going into debt. Now the bills are coming due, and we can’t pay them. My guess is, our standard of living has to decline by about 20 percent – and since we’ve built this incredibly inefficient infrastructure over the last 30 years, all of which requires maintenance, discretionary spending is going to take an even bigger hit.
As far as the auto industry is concerned, this means people are going to keep their cars longer, and when they do buy, they’ll buy smaller and more economical. And who has spent the last 30 years abandoning the small, economical car market?
Sadly, this is just another example of Detroit’s “It’s not our fault” mantra. Guys, face it, you screwed up, and it’s time to exit the stage and let someone competent try.
The Detroit-3 are swirling around the bowl. Nobody sane will finance them. Lending to the uncreditworthy and duping investors into buying worthless paper caused the financial crisis. How can more of the same with the taxpayer as the hapless mortgagee be helpful?
Just a thought but couldn’t this be a Ford death watch? We haven’t had one for a while even though much news merits it lately.
It may be the latest excuse for the big 3 but the financial problems in the markets are a reason for people watching what they spend currently. Sales are down in the majority of consumer areas aren’t they? The only real winners are the Walmarts of this world according to recent sales results.
As of last night, and certainly this morning, there is no more uncertainty on Wall Street, given that Paulson & Bernanke have proposed taking on the bad debt.
So I’m now announcing a new hedge fund that I guarantee will pay 100% per week provided my investors increase their investments with me by 110% each week. I expect all assets to be backed by the full faith, etc. of the Federal Government; that would be you.
So it’s a new day in America. This has to be a dream.
I remember when Nixon imposed wage and price controls in an effort to Whip Inflation Now. That was a stunningly blatant command and control attempt which needless to say doesn’t fit Republican Free Market orthodoxy. Today we have a Republican administration nationalizing companies and stacking freight trains of debt onto tax payers without so much as a hint of legislation being passed to specifically authorize any of it.
I am stunned that the administration can unilaterally spend $85 Billion to prop up an insurance company, and that is just the tip of the iceberg.
“Let the markets decide” seems to be little more than a flag of convenience.
It was actually Ford that had the WIP buttons that he handed out. Ironic that the free marketers that got us in trouble to begin with are now bilking us. Gee if only they had real regulation to begin with. Something about an ounce……..
That said I worked for a place that after 9/11 blamed EVERYTHING on it. We were a sinking ship and I guess the excuses bought us some time with the bosses. sounds the same to me.
Of course what’s happening will have far reaching effect on cars but the same people that were going to survive before the melt down will now. Sorry 2.8. But My guess is you’ll put your hand out and get waht you want. Remember the airlines?
Solar flares?
That is funny. The economy of the USA is in full meltdown and the Big 3 are going to lose sales as a result? The canary in the coal mine is dying and the rest in the coal mine are going to suffer. You need to realize this is the worst situation since the Depression and it is not over, and it is also unlikely the government has the finances to stop this. The same thing was attemted to stop the last Depression and the same result of surges by the market only to fall again.
‘Atlas Shruuged’
You need to start a USA Deathwatch series. The country is in no better shape than the Big 3.
You hit the nail on the head bluecon.
What was the saying, what is good for GM is good for America? How they go, the country goes. See a pattern yet guys and gals?
As the credit markets tighten more than Ralph Nader the Big 2.8 will indeed suffer, more. Add to that the call on their debt, the end of leasing, higher financing rates for new cars, etc. and this is more than just an excuse. Its gonna hit the transplants as well.
@ mel23,
May I propose that you hire me as your CFO? I promise to create more debt and losses than any CFO in history and I’ll do it for only $10-20 million a year with a $1.5B severance when the company becomes insolvent.
TR3GUY: Ironic that the free marketers that got us in trouble to begin with are now bilking us.
Free market advocates are completely responsible for this? Hardly. There was plenty of government meddling in credit markets, and a large part of this mess is the result.
Wilbur Ross, founder of the International Steel Group said in a recent NPR interview that the managements of these struggling companies develop “loser mentalities” where they spend their time blaming outside forces for their problems, rather than focusing on what they can control. Mr. Pipas is simply the latest in a long line of Auto Industry management that has been unable/unwilling to try to break this mold. Not a new thought for the group that writes and comments here, but it shows someone out there is watching. Someone with the means and ability to make the changes.
http://www.npr.org/templates/story/story.php?storyId=94569826
Farago… don’t know how to send this straight to you.
Read this: (not related with the topic)
http://blogs.motortrend.com/6295862/government/saving-detroit-keep-the-50-billion-rewrite-cafe-instead/index.html
Then, please erase this comment. Thanks
oh,I see…
We should put billions of dollars into helping deadbeat borrowers and crooked lenders but to help OUR auto industry get back on its feet…NO WAY
cant do that..it wouldn’t be AMERICAN’..oops I forgot that most readers don’t understand the term…
I think 25 billion would be a cheap price to pay to keep our automakers solvent.
Yea they have screwed up a LOT and have a LONG way to go….But they havent been NEARLY as corrupt as the investment firms and lenders that cost us so very much.
We Americans love our cars…..
Its too bad that BILLIONS of our tax dollars have been spent on something we cant even drive!!!!! o