Great News...Auto sales explode. Ford sales increased 22% GM sales increased 17% and Chrysler's increased SURGED 33%. Wow that's great but upon closer inspection fleet sales, lead by government purchases, increased 33%. That's right the government is cooking the books. Notice that consumers had a harder time finding deals this year but I guess the government did not.
These Bozo's are guying new cars for the government that really helps the economy, right? Well it helps the numbers which is what it is all about. The virtual is more important than the real. They say the outlook remains rosy for the summer. Ford is even ramping up production so that must mean that car sales are are going to keep going up. Well as long as the government keeps buying then Ford, GM, and Chrysler are Happy. The economists are happy the Congress is happy and the President is happy. Hey they are all going to be happy why not you?
The real truth is that the increases from a year ago are weak. A year ago sales were non exixtant.
Here is the article.
Drivers snapped up new models and rental-car companies and governments expanded their fleets in May, leading to big U.S. sales gains for most automakers. The exception was Toyota, whose tepid results showed that the company's discounts are losing their luster.
The industry's overall jump in sales shows that automakers are benefiting from a fragile but improving economy. Credit is thawing for cars loans and gas prices are stable. Consumers even shrugged off an 8 percent decline in the stock market last month. Ford [F 11.85 0.44 (+3.86%) ] will boost production through the fall, a sign that it thinks shoppers will keep buying.
Detroit automakers Ford, General Motors and Chrysler Group saw double-digit sales gains over the same month last year, when GM was headed into bankruptcy protection and Chrysler was already there.
Ford's sales rose 22 percent, boosted by strong demand for the F-Series pickup and new Ford Mustang. Sales to rental, government and commercial fleets rose 32 percent.
Ford said its inventories have fallen to a 48-day supply; a 60-day supply is the standard. U.S. sales analyst George Pipas said Ford is increasing second-quarter production by 15,000 vehicles to 640,000 cars and trucks. That would make second-quarter production 42 percent higher than a year ago. Ford also anticipates it will raise third-quarter production.
GM's sales rose 17 percent, led by a jump in sales of its four remaining brands—Chevrolet, Buick, GMC and Cadillac. Those brands got a lift from strong new products, such as the Chevrolet Equinox midsize crossover, Chevrolet Camaro muscle car, and Buick LaCrosse sedan.
Fleet sales spiked to 38 percent of GM's sales. Those sales can hurt resale values and brand image, but the company said it expects to end the year with 25 percent of its sales to fleets. Ford said it will end the year with about 30 percent of its sales to fleets.
Chrysler sales surged 33 percent in May, marking the first month in more than two years it sold more than 100,000 vehicles. Strong sales of its Jeep Wrangler, pickup trucks and minivans helped to drive the increase.
Consumers Struggle to Find Deals
Consumers found that deals were slightly worse than in April. The average industry incentive was $2,603 per vehicle last month, down from $2,631 in April and $2,943 in May of last year, according to auto information company Edmunds.com. Toyota spent $2,169 per vehicle, $160 less than in April.
Incentives are lower than in previous years because deep production cuts have left dealers with lean lots, making them less eager to cut prices, said Jesse Toprak, vice president of industry trends and analysis at auto pricing site TrueCar.com.
The outlook for auto sales through the summer appears rosy—provided the economy cooperates.
The financial markets need to stabilize and employers need to start hiring at a faster clip for sales to continue climbing, said Paul Ballew, a former chief economist at GM who is now chief economist at insurance firm Nationwide. "Big-ticket items get impacted by a choppy recovery," he said.
But several trends bode well for new car sales. Prices for used cars have been rising, which means consumers on the fence between a used and new car are more likely to buy new, Taylor said.
In addition, gas prices remain steady, home prices have started to stabilize and consumers are becoming more eager to replace their aging vehicles. "That free fall of home equity that consumers were looking at has stopped in most markets across the country, and that's important," he said.
The former economist at GM (give me a break)says Car sales are going in the The financial markets need to stabilize and employers need to start hiring at a faster clip for sales to continue climbing. Let me take a real long shot guess and say that the Jobs numbers are going to be great Friday. That will tie the bow on this thing. Let's change this story to a feel good love in now and bring in Mr. Smiley face to kick the puts butt.
The government is orchestrating this whole false recovery. The bought the banks stocks and then allowed then to trade their way to profits using taxpayer money and then sold the stock for a profit. They bought GM and are now pumping up their sales and will, bring them public and turn a profit on them. Where is the profit going for the money made on these trades???
Mikey
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