Consumers punish GM, Chrysler, reward Ford

[30ashopper]

Ford Motor Co. on Tuesday said its U.S. sales surged 33% in December from a bleak showing a year earlier, setting the stage for what many believe to be a year of healing for the beleaguered auto industry.

Conversely, General Motors Co. and Chrysler, both recovering from stints in bankruptcy, said they sold fewer cars in December than they did in the year-ago period.

As for Ford, sales totaled 184,655 cars and trucks, up from 139,067 vehicles a year earlier, easily topping Wall Street's targets for the month.

Sales of Ford, Lincoln and Mercury branded cars rose 42% to 61,195 vehicles. Volvo, which is in the process of being sold, registered a 13.8% rise to 5,638 vehicles.

The truck side, boosted by double-digit gains from the top-selling F-Series pickup, jumped 29.4% to 117,822 vehicles.

Ford said it likely garnered about 15% of the market, up 1 percentage point from 2008 -- marking the first year-on-year increase in the company's market share since 1995.

Dearborn, Mich.-based Ford has benefited from a relatively fresh lineup along with goodwill garnered from avoiding bankruptcy and declining to take money in a federal bailout, unlike rivals Chrysler and GM.

Ford ends year with big sales gains - MarketWatch

Interesting news - my guess is this represents a long term trend, which makes me wonder if GM and Chrysler will be back at the trough sometime in the near future.

 

[Bob]

the only difference was bringing in mulally and borrowing to the hilt whilst credit was available. they are truck/suv/debt heavy as well.

 

[futurebeachbum]

I hesitate to ever give consumers much credit, but it looks like many of them can see the difference in making a major purchase from a company with a future vs companies with no discernable future.

Fiat is quickly dismantling Chrysler and its hard to believe that GM has any chance at all to survive with mediocre products, little or no R&D and the Feds and the UAW running it. The Volt isn't going to save GM, and they don't have much else.

 

[Lynnie]

I think Ford ads are great right now, further promoting their strength in a tough economy. It is a shame for GM and Chrysler and I wonder as well if they will be able to fully recover.

 

[30ashopper]

the only difference was bringing in mulally and borrowing to the hilt whilst credit was available. they are truck/suv/debt heavy as well.

Even if they are, that's private debt, not public debt. They worked within the system to try and solve thier own problems instead of falling on their knees in front of the Democrats in Congress. That's to be commended IMO.

 

[scooterbug44]

Did people verbalize that this was the reason they bought from one company versus another?

If so, I am all for it..........................but find it a stretch that a 1% increase is due to consumer backlash.

 

[Bob]

gm employs over a quarter million people. if the government can keep lockheed martin and blackwater afloat with no bid contracts, i see no harm in trying to protect a vital manufacturing industry that can't turn on the dime of 4 dollar gas combined with economic collapse.

 

[Bob]

Even if they are, that's private debt, not public debt. They worked within the system to try and solve thier own problems instead of falling on their knees in front of the Democrats in Congress. That's to be commended IMO.

they hocked everything including their logo. that they borrowed before the financial markets collapsed is is not commendable, it's just lucky. otherwise you'd been posting to buy their common at 1.25.