The American auto industry is getting ready to take more losses this year as expectations for light-vehicle sales reach 13-year lows. Standard & Poor’s, a credit-rating agency, has expected light-vehicle sales to fall to 14.8 million units, and it will be the first time this figure has been below 15 million units since 1995.
Ford has released an even more pessimistic view of the market, expecting light-vehicle says for the US to reach just 14.7 million. As a result, Ford has abandoned hopes of achieving its sales targets of 13% of the market, citing the goal as "inoperable," according to the Detroit Free Press.
The new comes in the wake of
Ford's announcement that the company would miss its 2009 profits goal and that it would begin to phase out certain SUV's and
trucks that weren't performing well in terms of sales.
In the first three months of the year, Ford captured 12.6% of the retail light-vehicles market, down from the same period last year when it had 12.9% of the market. Similar tales are to be found amongst the other Detroit manufacturers, especially
Chrysler who so far has lost a full percentage point in sales, capturing just 10.2% of the retail light-vehicle market.
Despite the gloom, this may be an opportunity for carmakers to cut the excess fat in their lineup which may have remained were it not for lower sales. Chrysler, for example, has said it will reduce the number of badge-engineered vehicles in its lineup and Ford has stated it is cutting down on the production of
SUVs.
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By chris Posted: 5/30/2008 7:22am PDT
When ford sells 200,000 fewer small vehicles at a time that they have (from the consumer's point of view) a completely new light vehicle line-up, and gas prices are as high as they are, it kind of points to the fact that blue collar workers are getting screwed hard, and just arent buying cars, where the white collared workers are returning their tundras and ridgelines and getting camrys and accords because they're more affordable in these hard times.
By Renton Posted: 5/30/2008 7:50am PDT
It is a pretty low class of people that would do such a thing.
It is your money and do with it as you see fit, but in my mind when you buy American just to please your blue collar brothers in arms you are an idiot.
By chris Posted: 5/30/2008 8:08am PDT
It's like the "Support the troops" sentiment. you support the troops even though you want to kill the president with your bare hands for even starting the war. but you support the troops. they work hard, and they don't exactly have the best jobs in the world. they fight an unpopular war... etc.
There are people out there who will buy the cheapest, the "nicest".. the most "stylish"... a lot of these things are perceptive issues.. and if it happens to be foreign, well, the american companies and engineers arent doing a good enough job. thats fine.
the only thing that kills me are the people who will never consider an american car. they have no brand loyalty to toyota or honda,.. not even a geographical bias like japanese over european. they just wont consider american. it's insane. americans simply make the best trucks. no question. and apparently you're better off buying a CTS than a lexus GS or ES or something like that.. but some people are convinced that american brands will never make anything good. and that's simply not the case. every brand has their strong cars and their weak cars.
By bambam Posted: 5/30/2008 8:35am PDT
SO let the marketing begin
By chris Posted: 5/30/2008 9:44am PDT
sorry for constantly turning things to ford.. just saying.. I've got a friend who loves toyota and mazda. everything else to him is crap, including ford, which is funny cause mazda and ford share so much engineering. he loves the 6, but hates the fusion.. calls it a POS.. he's kinda annoying like that. the worst thing about him is that he thinks he really knows whats going on in the auto industry.,. and knows that toyota and mazda are the pinacle of quality in "budget" brands.
By Renton Posted: 5/30/2008 10:32am PDT
I am not saying the American workers work hard or not, we all work hard in this world . I just feel that my dollar is better spent on the best product I can afford, and right now that is either a Honda, or A Subaru, or a BMW.
I like to be around excelllent engineering, right now I am thinking that that is not going to come from some American car. Sorry loyalty that is undeserved is blind loyalty.
By craigs Posted: 5/30/2008 2:12pm PDT
While everyone is entitled to their own opinion I think some of your ideas are as outdated as many of the domestic cars that are produced and sold here.
Your logic is be loyal and buy a sub standard car just to support a domestic firm? That is crazy!! I work hard for my money and I buy the best product at the most competitive price, car or any other product for that matter.
Another point is, what is domestic and import anymore? That line has become so blurred. Many domestic car manufacturers now make cars in Mexico and China (Chevy Equinox sold in US uses engines made in China) and many Import firms like Toyota, Honda and BMW produce vehicles here in the US employing thousands and thousands of US workers. How do you deal with this as a "buy american only"?
The bottom line,. if the domestics produced decent cars that are reliable, long term quality and safe as many of the imports I'd buy one.
By Graham Posted: 5/30/2008 3:03pm PDT
By MyWheelsOnWalls.com Posted: 5/31/2008 2:16pm PDT
To add further fuel to the fire and to back up the blue collar worker, I am sure thay scratch there heads and wonder why a white collar guy would buy a Lexus ES when he can save some coin and buy a Camry. My personal favorite though is people who buy Audi's why? buy a VW and save thousands or in the case of the Porsche and Audi SUV you'd save tens of thousands, two for one in some cases.
Maybe the idiot is the white collar guy but then again its his/her money to waste.....
By john Posted: 6/1/2008 12:10am PDT
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