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November Sales Abysmal Even for Honda, Toyota, VW
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On the heels of the New York Times' pronouncement today that, yes, we really are in a recession (how about a nearly 9 percent S&P 500 decline in just 6.5 hours yesterday?), many automakers shared the sobering news of their November '08 sales. Even tight ships like Honda, Toyota, and VW--who should theoretically be profiting in a market skewing toward smaller, more efficient vehicles like the Honda Fit, Toyota Yaris, and VW Jetta TDI--are feeling considerable pain.
For November 2008, versus that month one year ago, American Honda sales dropped 31.6 percent. Toyota Motor Sales U.S.A.'s sales slid 33.8 percent, and VW of America, Inc. fared slightly better with a sales decrease of 19.2 percent.
Said Honda Executive Vice President Koichi Kondo regarding U.S. auto demand in an interview Friday with Reuters: "There's a bottom somewhere. I'd like to know where it is."
Automotive News yesterday commented that analysts predict GM's November sales declines to range from 28 to 42 percent. They say Ford's November sales are slated to drop 33 percent, and Chrysler 40 percent.
VW and its brand Audi are mounting a worldwide sales assault, and it seems a sound decision based upon their highly diversified lineup and sales channels around the world. Despite sharp declines in U.S. sales, VW's global sales are up considerably, and the company is even building a new plant in Tennessee that will produce a mid-size sedan for the U.S. marketplace. But if the news just keeps getting worse--and the predictions continue turning out to be kinder than market realities--will even VW have to curtail plans for expansion?--Colin Mathews
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Make sure you check out our partner sites dedicated to focused news, reviews and more for Ford, Chevrolet, Toyota, Honda, and the Toyota Prius.
For November 2008, versus that month one year ago, American Honda sales dropped 31.6 percent. Toyota Motor Sales U.S.A.'s sales slid 33.8 percent, and VW of America, Inc. fared slightly better with a sales decrease of 19.2 percent.
Said Honda Executive Vice President Koichi Kondo regarding U.S. auto demand in an interview Friday with Reuters: "There's a bottom somewhere. I'd like to know where it is."
Automotive News yesterday commented that analysts predict GM's November sales declines to range from 28 to 42 percent. They say Ford's November sales are slated to drop 33 percent, and Chrysler 40 percent.
VW and its brand Audi are mounting a worldwide sales assault, and it seems a sound decision based upon their highly diversified lineup and sales channels around the world. Despite sharp declines in U.S. sales, VW's global sales are up considerably, and the company is even building a new plant in Tennessee that will produce a mid-size sedan for the U.S. marketplace. But if the news just keeps getting worse--and the predictions continue turning out to be kinder than market realities--will even VW have to curtail plans for expansion?--Colin Mathews
---
Make sure you check out our partner sites dedicated to focused news, reviews and more for Ford, Chevrolet, Toyota, Honda, and the Toyota Prius.
Responses (4 total)
By Ed | Posted: Dec 4th 2008, 12:49:45 PM
"I wouldn’t take satisfaction in anyones struggles - even if you don’t particularly like “clown-dealers”. Their failure in your neighborhood could have far reaching effects"
People never see the actual dealer, only their staff, so don't take it personally.
The dealers I called "clowns" in indignation in my post were the ones that were selling the POS Prius at a $5k premium over its LIST price (which already makes them a good profit), and now they cry uncle with gas at $1.67 ($1.59 after 5% off, for midgrade!), they offer $2k discounts on the Prius, and still can't sell even half the number they sold when they were overcharging by $5k.
When Toyota sells 70% of the vehicles that GM sells, with 1,500 dealers, and GM has either 7,500 (even if it has 6,000) dealers, it is obvious that in a few years, at least HALF of the GM dealers have to quit, so the rest can be healthy and profitable.
Even assuming that sales remained at 17 million vehicles a year and not 12 and 11 as they are now.
By Ed | Posted: Dec 4th 2008, 12:43:50 PM
"Car Guy
December 3rd, 2008 - 9:23 pm
No offense Ed, but Chevy’s number on the Malibu? Percentages can be misleading."
No offense taken. By now you must have seen the numbers, it was 9-10K Mmalibus in Nov, vs 6-7 in Nov 07. WHat is misleading is that sales of the onetime very popular Impala tanked, which price-wise competes with the Malibu. (even tho it is larger and has a bigger engine)
"No, I’m not a Toyota Dealer or Salesperson. I’m a VW Dealer."
How much is a Jetta Diesel with leather? If you have any available. My first car was a VW, a 75 Dasher Wagon, much lighter ancestor of the Passat (it was called the passat or the Audi 80 in Europe), and it was a true POS, everything gave up after 65k miles, and expensive parts and labor too. No wonder I never bought one again, and when I got my 98 7 series in 05, at a bargain-basement $10.5k, i knew I took a risk with the reliability of the oh so nice "German ENgineering".
"VW is probably poised to take advantage of Market conditions, but I don’t take much satisfaction in the realization that it may be at the expense of Dealers who own other franchises."
VW used to be the only Import game in town back when the Real VW Beetle (not that fraud GOlf-clone "New Beetle" water cooled front driver) was King, in the 70s, but, like the Big 3, decades of shoddy, unreliable products delivered its market share to Honda and Toyota.
VWs are great to drive, and have excellent exterior and interior styling. If VW fixes the Reliability, and bring in 100,000s of High MPG Diesels at little or no premium, you may come back again.
I wouldn’t take satisfaction in anyones struggles - even if you don’t particularly like “clown-dealers”. Their failure in your neighborhood could have far reaching effects.
By Car Guy | Posted: Dec 4th 2008, 01:23:38 AM
No offense Ed, but Chevy's number on the Malibu? Percentages can be misleading.
No, I'm not a Toyota Dealer or Salesperson. I'm a VW Dealer.
VW is probably poised to take advantage of Market conditions, but I don't take much satisfaction in the realization that it may be at the expense of Dealers who own other franchises.
I wouldn't take satisfaction in anyones struggles - even if you don't particularly like "clown-dealers". Their failure in your neighborhood could have far reaching effects.
By Ed | Posted: Dec 3rd 2008, 05:30:17 PM
Among the top fifteen sellers in November, only the Chevy malibu had an increase (31%!), and, more imortantly, the car with the biggest DEcrease was none other than the UGLY PRIUS, which PLUMMETED almost 50%!!! (48% to be exact)
($1.59 gas - midgrade, after my 5% discount) could be a major reason why.)
If you ever wanted to buy that ugly POS, NOW is the time! Instead of jacking up the price by $5k, the same clowns-dealers now offer DISCOUNTS of up to $2k to get the ugly POS off the lots!!!
How Times change!
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