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Crashing Auto Sales Reflect Onset Of Debt Armageddon

investmentresearchdynamics.com / Dave Kranzler / 

July auto sales was a blood-bath for U.S auto makers.  The SAAR (Seasonally ManipulatedAdjusted Annualized Rate) metric – aka “statistical vomit” –  presented a slight increase for July over June (16.7 SAAR vs 16.5 SAAR).   But the statisticians can’t hide the truth.  GM’s total sales plunged 15% YoY vs an 8% decline expected.  Ford’s sales were down 7.4% vs an expected 5.5% drop.   Chrysler’s sales dropped 10.5% vs. -6.1% expected.  In aggregate, including foreign-manufactured vehicles, sales were down 7% YoY.

Note:  These numbers are compiled by Automotive News based on actual monthly sales reported by manufactures.  Also please note:  A “sale” is recorded when the vehicle is shipped to the dealer.  It does not reflect an economic transaction between a dealer and an end-user.   As Automotive News reports:  “[July was] the weakest showing yet in a year that is on tract to generate the industry’s first decline in volume since the 2008-2009 market collapse.”

The domestics blamed the sharp decline in sales on fleet sales.  But GM’s retail sales volume plunged 14.4% vs its overall vehicle cliff-dive of 15%  And so what?  When the Obama Government, after it took over GM,  and the rental agencies were loading up on new vehicles, the automakers never specifically identified fleet sales as a driver of sales.

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