Saturday, August 02, 2008

Bad news for Auto Companies in US market

I don’t need to remind you that USA is the most important car market in the world. It is also the largest car market. So, the main focus of every auto company in the world is to get a good market share in this market. Now, figures are coming out and it seems that July 2008 was a disaster for most Auto companies. Car sales decreased by 13% in July 2008 compared to July 2007.

Los Angeles Times wrote:

Americans bought 1.14 million vehicles last month, 13% fewer than a year earlier. Among the hardest hit companies were those that manufacture a lot of trucks: Chrysler was down 29%, while Ford Motor Co. and Toyota Motor Corp. also declined by double digits, according to Autodata Corp.
But when it came to bad news, it was hard to beat General Motors Corp. GM not only saw sales slide 26% in July, but it also reported its third-worst earnings in history, losing $15.5 billion in the second quarter.

I am not that much shocked with this news because there is an economic slow-down in USA. So, there is no wonder that it has affected the car market too.