LAST AUTO NEWS – AUTO SALES REPORTS EXPECTED TO BE BLEAK; MORE DEALERSHIPS TO CLOSE
Last Auto News –
Automakers will address September sales abstracts backward today or aboriginal tomorrow, and analysts apprehend to see an eleventh beeline ages of decline. We’re active out of synonyms for “dismal” to use in headlines.
Reuters reports, “Automakers are accepted to address that U.S. auto sales fell in September to about a 15- year low amidst ambiguity over a abeyant Wall Street bailout and bound credit, which has fabricated it added difficult for abeyant buyers to get car loans.” Declines are accepted from all of the above automakers, “With U.S.-based General Motors Corp, Ford Motor Co, and Chrysler announcement added declines than Toyota Motor Corp, Honda Motor Co Ltd., and Nissan Motor Co Ltd.”
Industry analyst Jesse Toprak told Edmunds Inside Line, “February 1993 was the endure time that beneath than 1 actor new cars were awash in a month, and we’re advancing appreciably abutting to that aggregate again.”
Bloomberg says the sales abstracts may advance a annular of dealership failures. “U.S. new-vehicle dealership closures may acceleration as abundant as 40 percent this year as crumbling sales and surging borrowing costs cut into profits, the National Automobile Dealers Association said today.” The industry accumulation expects to see “as abounding as 600″ dealers shut down, “equal to about 3 percent of the total.” Dealers affairs calm cars “probably will annual for the aggregate of the closings,” back the Big Three accept appropriately added dealers in the U.S. than their adopted rivals, all aggressive for the aforementioned abbreviating amount of customers.
The Wall Street Journal letters that automakers, for their part, achievement that the revised bailout amalgamation authoritative its way through Congress “will axis a growing acclaim crisis that threatens to added coil their industry.” The amalgamation voted down on Monday “included a abundant bailout for auto lenders. These companies authority a abiding of bad auto loans that could compress in amount and aching both the lenders and the car makers. This bailout would accept been abstracted from the $25 billion in bargain loans for U.S. auto makers that President Bush active into law Tuesday.” It isn’t bright whether that admeasurement will be included in the revised bill that may ability a vote today.
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