The CNN poll has 70% of respondents against bailing out the automakers. On Nov 9, 3:47 pm, "\"Lone Wolf\"" <[EMAIL PROTECTED]> wrote: > Collapse of US auto sales points to deep recession > By Jerry White > 5 November 2008 > > Sales of new vehicles in the US plummeted in October as consumers—hit > by growing unemployment, falling income and tighter credit—sharply > reduced purchases of cars and trucks. Sales fell by a staggering 31.9 > percent last month over the previous year in a further sign the US > economy has entered a deep and protracted downturn, threatening the > jobs of millions of working people. > > Sales fell below a million for the second straight month to the lowest > level since January 1991, according to Autodata Corp. At the current > rate, automakers would only sell 10.56 million cars and trucks in 2008— > down from 16 million in 2007—the lowest number since 1983, when the US > economy struggled to emerge from the slump of the early 1980s. > > Adjusted for increases in the US population, last month was the worst > since World War II, GM sales analyst Michael DiGiovanni told > reporters. “This is clearly a severe recession,” he said. > > General Motors—which is seeking a government bailout to avert > bankruptcy and expedite a merger with number-three US automaker > Chrysler—suffered a 45 percent decline in sales. Chrysler sales fell > by 35 percent and Ford’s fell by 30 percent. The sharp falloff also > hit top-selling Japanese-based carmakers. Toyota saw a 23 percent > decline despite offering zero percent financing; Honda’s sales dropped > 28 percent. > > Further production cutbacks and the layoff of another 10,000 > autoworkers over the last two weeks contributed to another drop in > overall output at US factories. The Institute for Supply Management > reported its manufacturing-activity index fell to a 26-year low in > October. In addition, the Commerce Department reported that factory > orders fell 2.5 percent in September from August levels, much worse > than the 0.7 percent drop analysts had predicted. > > As a result of falling demand from steelmakers—a key supplier for all > manufacturers—production at 17 of the nation’s 29 blast furnaces is > being shut down. “We’re dealing with a situation that could develop > into another Great Depression, if not handled properly,” Daniel > DiMicco, chief executive of Charlotte, North Carolina-based steelmaker > Nucor Corp., told the Wall Street Journal. > > The Detroit News reported auto executives expect the market to get > even weaker and are bracing for a protracted slowdown. Ford economist > Emily Morris said, “If we believe that the third quarter was not the > bottom for the economy, it’s likely that the third quarter will not > have been the worst for industry sales either,” she said. > > With workers facing increasing economic insecurity, consumer > confidence fell in October to its lowest level since 1967, when the > Conference Board, a New York research group, began keeping records. > After years of accessible car loans, the drying up of credit has hit > the automakers hard. GM’s financing arm, GMAC, is reportedly offering > loans only to customers with top credit scores. In many areas of the > US, only a third or so of all customers would qualify for loans, a GM > spokesman said. > > One or more of Detroit’s Big Three automakers are not expected to > survive the crisis. Last week, rating agency Moody’s downgraded > Chrysler and GM debt for the second time in three months, as well as > the debt of Ford’s lending arm, citing “the pace and severity of > erosion in the U.S. automotive sector” and suggesting the companies > might have difficulty remaining solvent through 2009. > > The decades-long collapse of the US auto industry is one of the > sharpest examples of the decline of American capitalism. In the 1970s, > US carmakers controlled more than 80 percent of the US market, with GM > selling more than half the cars. By 2008, Asian- and European-based > carmakers accounted for 51 percent of US sales. > > Faced with falling market share and profits, the auto executives > carried out an unrelenting attack on the jobs and living standards of > workers, which continues to this day. GM, which employed 350,000 > unionized workers in 1970, now has fewer than 70,000 blue-collar > workers. Entire cities, such as Detroit, Flint and Dayton, Ohio, have > been ravaged by plant closings and mass layoffs. > > The anticipated merger between GM and Chrysler would result in the > shutdown of dozens of factories and the elimination of 50,000 jobs at > the two companies. Tens of thousands more would lose their jobs at > auto parts suppliers and related companies. In the face of these > attacks, the United Auto Workers union (UAW) has openly collaborated > with the employers against its own members. (See “GM-Chrysler merger: > United Auto Workers union prepares another betrayal.” ) > > The downturn has spread throughout the economy. On Tuesday, lumber and > building material supplier Louisiana-Pacific reported wider third- > quarter losses, as the slumping housing market has undercut revenue. > The Nashville, Tennessee-based company has closed sawmills, reduced > production at other facilities and slashed hundreds of jobs. > > For the fourth quarter, the company anticipates that most of its mills > will be down for more time than they will operate. Chief Executive > Richard Frost said, “The declining activity in the housing market, in > both new construction and repair and remodeling, caused lower demand > for our products at very challenging price levels. Business fell off > even harder in September and remains basically paralyzed as a result > of the banking and financial market crisis.” > > Computer maker Dell—which is now completing plans announced last year > to cut 8,900 jobs or 10 percent of its workforce—announced Tuesday > that it will outline a new series of cost-cutting measures. These will > include a hiring freeze and offers of voluntary severance packages, as > well as one to five days’ compulsory vacation without pay, according > to a Wall Street Journal report --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum
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