Automaker Sales Woes May Not Be Over Just Quite Yet

The recovery of the auto industry may be heading for a detour.

Sales in the U.S. fell 10.8% in June from May, falling below the expectations of several automakers and many industry analysts.

"We just don't see a lot of people going to purchase cars unless there is some big incentive or deal," said Jessica Caldwell, an analyst at auto information company Edmunds.com. "Most people's personal finances have not improved over the past year, so they are gun-shy about purchasing a car."

Jeff Schuster, global forecaster at J.D. Power & Associates, said consumers appeared beaten down by volatility in the stock market, downbeat economic reports and the slow pace of job creation, creating challenges for an auto industry trying to recover from one of its worst periods ever last year.



2009 Detroit Auto Show Photo Gallery

2011 Panamera and Cayenne V6 Launch Photo Gallery

2011 Jeep Grand Cherokee Photo Gallery

2011 Lexus LFA Photo Gallery

2011 Frozen Gray BMW M3 Photo Gallery

quizz - 7/2/2010 12:44:05 PM

+1 Boost

Yep, so "middle class" cars are going to suffer the most as this demographic will simply drive their current cars an extra 2 years rather than buy new, while the "upper" segment of society can still afford their BMW/Porsche/MB/Audi regardless. Sadly, in this economy, the rich are getting richer (record profits in Wall Street) while the middle class have become unemployed. Revolution is only 18 months away if the employment picture does not improve.

People who are poor don't complain to loudly as long as they can at least still feed their family and have a roof over their head, but take away food and shelter (unemployment benefits are expiring for millions of Americans this weekend) and you got yourself a recipe for trouble.

AgentOrange - 7/2/2010 5:54:35 PM

+2 Boost

The "rich are getting richer" because they're getting the bulk of the bailout and stimulus money (aka your tax dollars).
Don't worry, when the Republicans take over in the fall, the poor will get some trickle down money.