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12/6/2019 7:27:02 PM
Posted: 6/4/2008 2:12:52 AM EST
Asian Automakers Outsell Detroit; Trucks Are Shunned

By Mike Ramsey and Alan Ohnsman

June 3 (Bloomberg) -- Asian automakers outsold Detroit's Big Three in the U.S. for the first time last month as fuel-conscious consumers shunned General Motors Corp. and Ford Motor Co. trucks for Honda Civics and Toyota Corollas.

Japanese and South Korean companies boosted May sales by 3.7 percent. GM, Ford and Chrysler LLC fell a combined 21 percent as gasoline near $4 a gallon drove U.S. consumers from pickups and sport-utility vehicles.

Honda Motor Co.'s Civic small car dethroned Ford's F-Series pickup to become the best-selling vehicle in the U.S. Three other Japanese cars also overtook the industry's perennial sales champion, underscoring a shift that prompted GM to announce the closing of four truck plants in North America today. GM will expand production of cars in response to what it called a permanent change in consumer behavior.

``I've never known the market to change this much this quickly in my lifetime,'' said Jim Hossack, a market analyst for AutoPacific Inc. in Tustin, California, and former engineer for Ford, Chrysler and Mazda Motor Corp. ``It's fueled by gasoline prices, obviously, but there's more to it than that.''

Overall U.S. sales fell 11 percent, their seventh-straight monthly decline, extending the industry's longest streak since 2000-2001. Vehicles sold at an annual rate of 14.3 million, the lowest in a decade. Car sales accounted for 57 percent of new purchases, up from 50 percent a year earlier.

GM, Ford

GM dropped 28 percent and Ford reported a 16 percent decline. The two companies rely on pickups and SUVS for more than 60 percent of their combined U.S. sales. Honda -- which doesn't offer V-8 engines or full-sized SUVS and pickups -- advanced 16 percent.

Honda's Accord and Toyota Motor Corp.'s Camry and Corolla also beat the F-Series. The last time the pickup was topped by a car was in December 1992, according to Dearborn, Michigan-based Ford. That's when Ford's Taurus finished on top as part of a push to overtake the Accord as the year's best-selling car.

In addition, Honda outsold Chrysler to rank No. 4 in U.S. sales, behind GM, Toyota and Ford. Chrysler, the U.S. automaker most dependent on light trucks, tried to boost demand by guaranteeing buyers that they'd pay no more than $2.99 for a gallon of fuel. Its sales fell 25 percent, for their biggest drop this year.

`Land Yachts'

Today's big pickups and SUVs remind investor Jeffrey Scharf of ``the big land yachts'' of the 1970s. ``When the first oil crisis hit, you couldn't give those things away,'' said Scharf, president of Santa Cruz, California-based Scharf Investments, which manages about $660 million in equities, including Honda and Toyota shares.

Japan's Suzuki Motor Corp., which specializes in small cars, advanced 1.7 percent, and Nissan Motor Co. climbed 8.4 percent. South Korea's Hyundai Motor Co. and Kia Motors Corp. each gained more than 5 percent.

Sales of the new Smart microcar spurred Daimler AG, maker of Mercedes-Benz luxury vehicles, to a 12 percent gain. Volkswagen AG, Europe's biggest automaker, was up less than 1 percent. Bayerische Motoren Werke AG's sales rose 3.1 percent, driven by its Mini division; BMW brand sales declined 4.6 percent.

Some of Detroit's cars also advanced. Ford's Focus small car gained 53 percent in May, and the Fusion mid-sized sedan was up 27 percent. GM's subcompact Chevrolet Aveo and Malibu sedan each rose more than 39 percent.

Toyota dropped 4.3 percent as sales of its Tundra pickup plummeted by almost a third. All told, Asia's 10 automakers sold 671,398 cars in the U.S. last month, 32,290 more than Detroit's Big Three.

Steepest Decline

The industry's sales decline was the steepest this year and came amid signs of a weakening U.S. economy. Manufacturing in the U.S. contracted for a fourth straight month in May, according to a report yesterday from the Institute for Supply Management. The Reuters/University of Michigan index of consumer sentiment fell to the lowest since June 1980 in May after the U.S. lost jobs in the first four months of the year.

``An increasingly constrained consumer, deepening woes for the housing sector, and a degree of unwanted inventory accumulation in the first quarter will all weigh on manufacturing output,'' Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez Inc., said in a note to clients.

The average price of a gallon of gasoline rose to $3.98 in the U.S. yesterday, up from $3.16 a year earlier, according to motorist group AAA.

Not Cyclical

The doubling of gasoline prices over the past three years represents ``a structural change, not just a cyclical change,'' GM Chief Executive Officer Rick Wagoner said today.

GM will close all four plants by the end of 2010, possibly earlier if sales worsen. The Detroit-based company approved the production version of its Chevrolet Volt electric vehicle and will expand car output at two factories. It is also considering a revamp or sale of the Hummer SUV brand.

Ford said today it will boost production at an Ontario plant by about 19 percent next year by adding a third shift to build more Flex, Edge and Lincoln MKX crossovers.

Ford rose 4 cents to $6.68 at 4:15 p.m. in New York Stock Exchange composite trading, and has declined less than 1 percent this year. GM gained 14 cents to $17.58; the stock is down 29 percent in 2008. American depositary receipts of Toyota City, Japan-based Toyota fell 22 cents to $102.29; they've fallen 3.7 percent this year.

GM's 8.375 percent note due July 2033 gained 0.63 cent to 68.13 cents on the dollar, yielding 12.58 percent, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. Ford's 7.45 percent note due July 2031, fell 0.88 cent to 66.63 cents on the dollar, yielding 11.64 percent.

Credit-default swaps on GM debt rose 24 basis points to 1,211 basis points, according to CMA Datavision in New York. Ford's gained 28 basis points to 1,117 basis points.

The contracts are designed to protect bondholders against default. A rise in the price indicates a decline in the perception of a company's credit quality.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a7ZkoSbHkEmQ&refer=home
Link Posted: 6/4/2008 2:23:54 AM EST
I don't care what happens, I will NEVER buy a Chinese car no matter how good it is or how little it costs until and unless China totally abandons communism and its military expansionism.

CJ
Link Posted: 6/4/2008 2:25:27 AM EST
FWIW, most cars made by domestic manufacturers are using more and more components that are made in China. The Ford Mustang, an American muscle car icon, has quite a few Chinese components.
Link Posted: 6/4/2008 2:25:29 AM EST

Originally Posted By cmjohnson:
I don't care what happens, I will NEVER buy a Chinese car no matter how good it is or how little it costs until and unless China totally abandons communism and its military expansionism.

CJ



How about American cars with Chinese parts?
Link Posted: 6/4/2008 2:25:52 AM EST
How many chinese parts are on your current car?

How many chinese products are in your home?



Originally Posted By cmjohnson:
I don't care what happens, I will NEVER buy a Chinese car no matter how good it is or how little it costs until and unless China totally abandons communism and its military expansionism.

CJ
Link Posted: 6/4/2008 2:30:54 AM EST

Originally Posted By cmjohnson:
I don't care what happens, I will NEVER buy a Chinese car no matter how good it is or how little it costs until and unless China totally abandons communism and its military expansionism.

CJ



But Wal-Marts ok
Link Posted: 6/4/2008 2:31:25 AM EST

Originally Posted By Dance:
How many chinese parts are on your current car?

How many chinese products are in your home?



Originally Posted By cmjohnson:
I don't care what happens, I will NEVER buy a Chinese car no matter how good it is or how little it costs until and unless China totally abandons communism and its military expansionism.

CJ



Tagged for the answer!
Link Posted: 6/4/2008 2:35:57 AM EST
The Big 3 can eat shit and die. They've had high efficiency technology for a long time but never rolled it out.
Course, the damn stinkin hippies can eat shit too since we regulated diesel out.
Link Posted: 6/4/2008 2:36:30 AM EST

Originally Posted By cmjohnson:
I don't care what happens, I will NEVER buy a Chinese car no matter how good it is or how little it costs until and unless China totally abandons communism and its military expansionism.

CJ


China vs USA

Which one has fought more wars in the past 50 years??

Uh huh. Military expansionism. Interesting.
Link Posted: 6/4/2008 2:40:03 AM EST
There's a dealer selling Chinese cars here and now. They have had them for a year or so. Notice where I live
Link Posted: 6/4/2008 2:41:42 AM EST

Originally Posted By madmathew:
There's a dealer selling Chinese cars here and now. They have had them for a year or so. Notice where I live


Those things passed the crash tests?? No shit.....
Link Posted: 6/4/2008 2:46:57 AM EST

Originally Posted By Specop_007:

Originally Posted By cmjohnson:
I don't care what happens, I will NEVER buy a Chinese car no matter how good it is or how little it costs until and unless China totally abandons communism and its military expansionism.

CJ


China vs USA

Which one has fought more wars in the past 50 years??


Uh huh. Military expansionism. Interesting.


North Korea vs USA

Which one has fought more wars in the past 50 years?

Whats your point???

Or are you just another moral equivalence nut?
Link Posted: 6/4/2008 2:50:21 AM EST

Originally Posted By Specop_007:

Originally Posted By cmjohnson:
I don't care what happens, I will NEVER buy a Chinese car no matter how good it is or how little it costs until and unless China totally abandons communism and its military expansionism.

CJ


China vs USA

Which one has fought more wars in the past 50 years??

Uh huh. Military expansionism. Interesting.


China has existed for thousands of years and has fought numerous internal conflicts. They've even written many books on this and I believe one of them is taught at US Military Academy West Point.
Link Posted: 6/4/2008 2:54:22 AM EST

Wait until China starts selling cars here


It will make the Ford Pinto look heaven sent compared to the trash they build.
Everything, and I mean everything, they build in China is junk.

Link Posted: 6/4/2008 2:57:44 AM EST

Originally Posted By metroplex:

Originally Posted By Specop_007:

Originally Posted By cmjohnson:
I don't care what happens, I will NEVER buy a Chinese car no matter how good it is or how little it costs until and unless China totally abandons communism and its military expansionism.

CJ


China vs USA

Which one has fought more wars in the past 50 years??

Uh huh. Military expansionism. Interesting.


China has existed for thousands of years and has fought numerous internal conflicts. They've even written many books on this and I believe one of them is taught at US Military Academy West Point.


We read a lot of books on every subject at West Point.


(We also had some exchange cadets from China, and they weren't allowed to use any computers. Similar thing happens when we send cadets to China; they have a specific computer that we are allowed to use, and we can only send approved things with it.)
Link Posted: 6/4/2008 2:59:15 AM EST
[Last Edit: 6/4/2008 2:59:25 AM EST by Specop_007]

Originally Posted By Rich_V:

Originally Posted By Specop_007:

Originally Posted By cmjohnson:
I don't care what happens, I will NEVER buy a Chinese car no matter how good it is or how little it costs until and unless China totally abandons communism and its military expansionism.

CJ


China vs USA

Which one has fought more wars in the past 50 years??


Uh huh. Military expansionism. Interesting.


North Korea vs USA

Which one has fought more wars in the past 50 years?

Whats your point???

Or are you just another moral equivalence nut?


No, I'm a realist who believes in facts and not made up fairy bullshit.

If your going to choose between an American car and a Chinese car and your concern is if the country in question is engaged in "military expansionism"....Well, which one would YOU choose?
Link Posted: 6/4/2008 3:01:35 AM EST

Originally Posted By Specop_007:

Originally Posted By madmathew:
There's a dealer selling Chinese cars here and now. They have had them for a year or so. Notice where I live


Those things passed the crash tests?? No shit.....


They are friggin tiny! They are on the on the lot though
Link Posted: 6/4/2008 3:02:40 AM EST

Originally Posted By madmathew:

Originally Posted By Specop_007:

Originally Posted By madmathew:
There's a dealer selling Chinese cars here and now. They have had them for a year or so. Notice where I live


Those things passed the crash tests?? No shit.....


They are friggin tiny! They are on the on the lot though


No, no they are not.

You would have included the prerequisite MS Paint if they were.



Whats the price on one of these Chinese cars?
Link Posted: 6/4/2008 3:13:56 AM EST

Originally Posted By madmathew:
There's a dealer selling Chinese cars here and now. They have had them for a year or so. Notice where I live




Really? Where?
Link Posted: 6/4/2008 3:15:52 AM EST
No thanks.
Link Posted: 6/4/2008 3:28:51 AM EST

Originally Posted By Specop_007:

Originally Posted By Rich_V:

Originally Posted By Specop_007:

Originally Posted By cmjohnson:
I don't care what happens, I will NEVER buy a Chinese car no matter how good it is or how little it costs until and unless China totally abandons communism and its military expansionism.

CJ


China vs USA

Which one has fought more wars in the past 50 years??


Uh huh. Military expansionism. Interesting.


North Korea vs USA

Which one has fought more wars in the past 50 years?

Whats your point???

Or are you just another moral equivalence nut?


No, I'm a realist who believes in facts and not made up fairy bullshit.

If your going to choose between an American car and a Chinese car and your concern is if the country in question is engaged in "military expansionism"....Well, which one would YOU choose?


I'll chose MY country first, which are you choosing??

And to the OP, no thanks on the China cars.
Link Posted: 6/4/2008 3:30:58 AM EST
That those 200 mile carbuerators they bought the patents for then hid from the public?


Originally Posted By Specop_007:
The Big 3 can eat shit and die. They've had high efficiency technology for a long time but never rolled it out.
Course, the damn stinkin hippies can eat shit too since we regulated diesel out.
Link Posted: 6/4/2008 3:31:23 AM EST

Originally Posted By cmjohnson:
I don't care what happens, I will NEVER buy a Chinese car no matter how good it is or how little it costs until and unless China totally abandons communism and its military expansionism.

CJ



Well said. I have no beefs buying my Jap cars. They are a decent ally.
China NO WAY.
Link Posted: 6/4/2008 3:32:43 AM EST

Originally Posted By BozemanMT:

Wait until China starts selling cars here


It will make the Ford Pinto look heaven sent compared to the trash they build.
Everything, and I mean everything, they build in China is junk.





If you think the Chinese toys are hazardous, just wait
Link Posted: 6/4/2008 3:35:41 AM EST

Originally Posted By Capt-Planet:

Originally Posted By metroplex:

Originally Posted By Specop_007:

Originally Posted By cmjohnson:
I don't care what happens, I will NEVER buy a Chinese car no matter how good it is or how little it costs until and unless China totally abandons communism and its military expansionism.

CJ


China vs USA

Which one has fought more wars in the past 50 years??

Uh huh. Military expansionism. Interesting.


China has existed for thousands of years and has fought numerous internal conflicts. They've even written many books on this and I believe one of them is taught at US Military Academy West Point.


We read a lot of books on every subject at West Point.


(We also had some exchange cadets from China, and they weren't allowed to use any computers. Similar thing happens when we send cadets to China; they have a specific computer that we are allowed to use, and we can only send approved things with it.)


Yep, I saw the YouTube video about 2 West Point cadets in China. It was very interesting to see them wearing ACUs doing exercises with the Chinese cadets.
Link Posted: 6/4/2008 3:38:27 AM EST
I don't understand it- the American Automakers are floundering, going broke with talk of the Gov't having to bail them out, and then we allow the importation of Chinese cars. Makes no sense to me. I would think that a new supply of inexpensive Chinese cars comparable to Kias, etc. would be the final nail in GM and Fords caskets.

Link Posted: 6/4/2008 3:40:15 AM EST
[Last Edit: 6/4/2008 3:40:28 AM EST by Hamel]
Problem with Chinese cars is once you fill them up with gas, they're hungry for more 5 minutes later

I'm not surpised the Japanese and South Korean cars are now top dog. They make decent cars that run for a good long time. They just happen to be boring. That and luck that their line ups don't include alot of huge SUV's and pick ups.

I imagine things were just as bad or worse for US automakers in the 70's during the oil embargo.
Link Posted: 6/4/2008 4:11:29 AM EST
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