Annualized sales, Jan. ’08: 15.8 million
Annualized sales, Jan. ’07: 16.3 million
Who’s hot: GM, up 2.6%
Who’s definitely not: Chrysler, down 12.1%
Source: Automotive News Data Center
The Fed's January interest-rate cuts kept a mediocre sales month from being even worse, but the shaky economy clearly is sending ripples of distress through a jittery auto industry.
Toyota, Nissan and Honda — typically A-list performers — had lower sales last month. And the domestic industry is slashing production.
Of the six top-selling automakers, only General Motors had higher sales — up 2.6 percent from January 2007. By contrast, industry sales declined by 2.9 percent.
As the Detroit 3 struggle to stabilize sales, some suppliers and dealers are battling cash-flow crises.
Plastech, for example, a maker of plastic trim, is seeking a bailout from the Detroit 3. At least two of the automakers are nervous enough about Plastech's future that they're lining up alternate suppliers.
Meanwhile, many Ford dealers who are giving up their franchises are discovering that it's a tough business even when you're trying to go out of business.
Looking ahead, General Motors, Ford and Chrysler could hit another snag this summer when they negotiate contracts with the Canadian Auto Workers. Last week, CAW President Buzz Hargrove vowed to reject Detroit 3 proposals for two-tier wages in Canadian plants.
And sprinkled among the bad news is some really bad news: Isuzu, which was in the forefront of the brewing SUV craze in the 1980s and early 1990s, is bailing out of the U.S. light-vehicle market.
Sometimes the best thing you can say about a month like January is that it's over.
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