Total vehicles sales have dropped 12% in the U.S. since March 2007. Why? What does this mean for the future of the auto industry?
Double-digit declines have occurred for four major carmakers (Ford, GM, Toyota, and Chrysler) in the last year. The Wall Street Journal attributes this to three reasons: (1) high gasoline prices, (2) a weak job market and (3) a "credit crunch" that now requires consumers to have higher credit scores and larger down payments.
The sales slump has hit almost all major models, except for fuel-efficient compact vehicles. "This is a very challenging external environment, reflecting a seismic shift in consumer preferences," said Ford's Mr. Farley.
Such a shift will necessarily aid the growth of alternative vehicles, such as plug-in hybrid electric vehicles (PHEVs) and neighborhood electric vehicles (NEVs) that offer far more fuel savings over the lifetime of a conventional car. Companies that currently offer such cars are in the minority now, but I predict that major automakers will begin to take their lead and develop similar vehicles in order to increase their sales.
Its not rocket science folks : ) Enjoy the ride.
And how would this impact TATA acquiring Jaguar and LandRover. Was the timing correct? Why would have Ford sold it in the first place?
TrackBack URL for this entry:
http://www.triplepundit.com/mt/mt-tb.cgi/2452
From Delicious » del.icio.us / auto / industry
From Technorati »auto / industry /
January 5
January 5
January 5
January 2
January 2
January 1
January 1
January 1
