The automaker's announcements today were absolutely abysmal. We knew August sales were going to be "less robust" than August 2009 sales, given the Cash for Clunkers program in 2009 which brought sales forward at that time. However, we did not expect to see August 2010 sales figures below July 2010 numbers. August is typically the strongest month for auto sales, with favorable financing schemes and dealers looking to clear out older inventory.
GM (Government Motors) reported the worst numbers of the domestic manufacturers, with total sales dropping approximately 22,000 units or 10.5%. However, the company has divested itself of some of its auto lines and this accounted for a drop in sales of approximately 40,000 units. While it may seem that GM showed improvement, vis-a-vis they made up about 18,000 units of the 40,000 units lost, sales were lower than in July. In addition, GM was not able to take advantage of a 34% drop in sales suffered by Toyota. Remember, Toyota has been subject to lawsuits and political attacks given the "stuck pedal" and "carpet entrapment" recalls. In my book if you cannot make hay while your competitors are getting waxed, you aren't operating very well yourself. Either that or the economy just plain stinks. In truth, it is probably a lot of both.
Hmmm....wonder what the impact to the GM IPO will be???
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