Monday, July 6, 2009

Ford drives ahead while GM and Chrysler stall

In what may be a backlash against the government takeovers of GM and Chrysler in a plan to save the UAW at the expense of secured creditors, Ford sales are much stronger than either GM or Chrysler. Many Americans are angry at what amounts to the nationalization of GM and the handover of Chrysler to the UAW. They want to buy American and Ford is benefiting from their sentiment.

From the Washington Times:
"Government Motors" is driving Americans away.

There is a groundswell of disdain for the federal bailouts of General Motors and Chrysler, even as polls show that a growing "Buy American" sentiment is boosting sales for the only Detroit automaker that avoided bankruptcy and federal rescue - Ford.

GM and Chrysler say some buyers are coming back to support them, even trading in their Mercedes for Chevrolets.

But it is bailout opponents who are the most visible - and audible.

Conservatives thunder that the country has taken a socialist route with President Obama at the wheel.

"I won't buy a socialist car," columnist and radio talk-show host Hugh Hewitt thundered last month.

Others agree - at least about GM.

"Over the years, we have mostly been a General Motors family. Since GM has become Government Motors, we will never again buy a GM product," said William Crowley of Spicewood, Texas.

It's not just conservatives who are turning away from two of the Big Three. The bailouts were opposed by most Americans, including substantial minorities of Democrats surveyed in March and June polls, according to Gallup.

"You could say even Obama supporters don't like [it]," said Jeremy Anwyl, chief executive officer of car-buying site "I'm not sure you can put a party label on it."

Here is a list of June U.S. sales for most major auto manufacturers:

▼ 28% Industry total, 872,877 units from 1,212,933 units a year ago.

▼ 5% Kia, 26,845 units vs. 28,292 units
▼ 11% Ford, 148,153 units vs. 167,090 units
▼ 15% Volkswagen, 26,551 units vs. 31,411 units
▼ 20% BMW, 20,849 units vs. 26,155 units
▼ 23% Nissan, 58,298 units vs. 75,847 units
▼ 24% Hyundai, 37,943 units vs. 50,033 units
▼ 26% Mercedes, 16,271 units vs. 22,121 units
▼ 30% Honda, 100,420 units vs. 142,539 units
▼ 32% Toyota, 131,654 units vs. 193,234 units
33% GM, 175,792 units vs. 264,065 units
42% Chrysler, 68,297 units vs. 117,457 units

Ford sales are only down 11% compared to 33% for GM and 42% for Chrysler.


Joe "Truth 101" Kelly said...

I fully support the purchase of a new Ford BGP. So do my 400 shares of Ford stock.

Paradigm Shifter said...

This is also the effect of Ford being the only Detroit automaker with any product worth a second look. Which is likely a part of why the other two are also in bankruptcy. Ford is also racking up a ton of good will in the under 30 set by having the best social media presence of the Detroit Three.

Get ready - Ford is fast becoming a cool brand for great product, for not needing a government bailout, and for having great marketing.