The catastrophic lower sales in December from GM and Ford points to sharply lower economic growth. The Government figures point to slow growth but no recession. But in reality the matter is much worse in the main streets.
Deliveries dropped about 6.3 percent at GM, 8.4 percent at Ford and 9.8 percent at Chrysler LLC, based on the market expectation and analyst surveys. The Japanese car companies also registered slower growth. The trend supports the foreign car makers but the recession is challenging everyone.
Federal Reserve will lower rates sharply in early 2008. But that may not help the automakers specially GM and Ford. The credit squeeze makes it very difficult for any one with less than perfect credit.
Americans bought about 16.1 million cars and trucks for the year, the least since 1998. That is significant, say most analysts. All three of Japan's biggest automakers will probably report declines for December while collectively gaining market share. That further confirms tightening recession in US.
From The India Daily
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