Interest Rate Roundup

Tuesday, July 01, 2008

GM buys sales; Ford, Chrysler not so much

This is kind of funny -- General Motors shares are ripping higher today on news that adjusted sales were "only" down 19%. So I guess the auto business got better all of a sudden, right? Well, not really. GM's boost was likely entirely due to the late-month addition of "free money" -- 0% loans of up to 72 months on many of its gas-guzzling models. The promotion is scheduled to run through July 7.

Meanwhile, sales at Ford took an Acapulco-style cliff dive -- 28%. Sales at Nissan were down 18%, while sales at Toyota were off 21%. In other words, unless you "buy" sales, you're having a hard time moving metal in this economy.

UPDATE: Chrysler gave Ford a run for its money on the dismal news front. Sales plunged 36% YOY. Please note that all figures are unadjusted for variations in the number of sales days in the reference month.

1 Comments:

  • Is the promotion really any different than all the others?

    And what does it say if the market can rally on news like this?

    'just sayin. I think stuff sucks out there too, but maybe a $10 GM is pricing some of that in.

    By Anonymous Anonymous, at July 1, 2008 at 10:43 PM  

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