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Post sugar high crash from 'clunkers' stimulus

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posted on Sep, 16 2009 @ 07:20 PM
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I bet most of you read Market Ticker by now, but here's his latest story today:

market-ticker.denninger.net...!.html

Oops: "Pulled Forward" Demand Really IS False!
"I told you so"

Sept. 16 (Bloomberg) -- Chrysler Group LLC, the U.S. automaker run by Fiat SpA, said nationwide industry sales are off 19 percent so far this month after a government purchase- incentive program ended.

“We are going to see harsh reality in September,” Sergio Marchionne, the chief executive officer of Fiat and Chrysler, said at the Frankfurt Motor Show. He described the U.S. industry results as a “disaster.” Fritz Henderson, CEO of General Motors Co., said the market is “very weak” this month.

Disaster eh?

But but but I thought all those "cash for clunkers" buyers were people who wouldn't have bought a car otherwise?...
more at link

And the article referenced:

www.bloomberg.com...

Hopefully the lack of inventory means more demand at the factory.



[edit on 16-9-2009 by Dbriefed]




posted on Sep, 16 2009 @ 07:25 PM
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Another government run program that's a complete mess. I'm not an anarchist but my god government is ruining everything it gets its hands on nowadays. And we want these people to run the most precious thing to us, our HEALTHCARE? Yeah right! Americans need to wake up!

It's not even worth finding the energy nor the time worrying about this crap anymore. I mean tea parties, protests, forums, yadda yadda. What's the point? The average America has lost so much power and representation it's pathetic. I'd rather tune out than tune in anymore. Even our vote means jack# these days. Even people who realize our two party system is broken STILL VOTE TWO PARTY! My conclusions are as follow:

Americans are have officially surpassed stupidity and have entered a realm of retardation.

The US military is officially insane and our foreign policy has become militaristically out of control and unfundable yet we keep on truckin!

The US government is on a collision course to chaos and it's a race to the bottom.

There is not much middle class Americans can do.



posted on Sep, 16 2009 @ 08:16 PM
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reply to post by Dbriefed
 


So the real question is........

If I, me, humble Rockpuck and others on ATS predicted this EXACT effect before cash for clunkers even began (and you can look in the archives) ...

Does that make US smarter than the economic policy setters, the CEO's of these corps, and the Lawmakers of the US gov?????

And I don't want to sound to full of myself or of the many others.. in fact, I find it worrying



posted on Sep, 16 2009 @ 08:25 PM
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I have a couple of friends in the automotive supplier business and their orders for the rest of the year are triple this time last year. things ar looking up in the real world.



posted on Sep, 16 2009 @ 08:49 PM
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reply to post by mikellmikell
 


C'mon how is that possible? If sales are down 19% how can suppliers orders go up 3 times as much as last year. Oh, the new CEO's that have been appointed have no real world automaker experience. Now the orders make sense.

Government cannot run anything in the real world. Remember USSR.



posted on Sep, 16 2009 @ 09:20 PM
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reply to post by mikellmikell
 


That's interesting. My sister is parts buyer for a NAPA superstore as well as some other NAPA stores in our region, and she spends half of her day waiting on customers at the counter because her work load has dropped and she can't justify sitting at her desk all day. There's just not enough parts moving for her to order as much as she has in the past. Unfortunately for another employee, who has been laid off for lack of work, she is doing his job at the counter.

Are your friends suppliers for automotive factories? If so, then maybe my sis's work will pick up soon, too.

As for cash for clunkers. I am one of those who, even with the incentives, still was unable to purchase a new car. That's okay though. I will get to help foot the bill for those more fortunate than me who could afford to take advantage of the governments incentive.
Hey, that makes me a partiot, eh Biden? Tee hee.

I'm still waiting for Obama to help me pay my house payment and car note, like one lady tearfully proclaimed was going to happen on national TV one night last fall. I ROFLMAOed when I watched that bit of video.



posted on Sep, 16 2009 @ 11:24 PM
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Originally posted by Dbriefed
I bet most of you read Market Ticker by now, but here's his latest story today:

market-ticker.denninger.net...!.html

Oops: "Pulled Forward" Demand Really IS False!
"I told you so"

Sept. 16 (Bloomberg) -- Chrysler Group LLC, the U.S. automaker run by Fiat SpA, said nationwide industry sales are off 19 percent so far this month after a government purchase- incentive program ended.

“We are going to see harsh reality in September,” Sergio Marchionne, the chief executive officer of Fiat and Chrysler, said at the Frankfurt Motor Show. He described the U.S. industry results as a “disaster.” Fritz Henderson, CEO of General Motors Co., said the market is “very weak” this month.

Disaster eh?

But but but I thought all those "cash for clunkers" buyers were people who wouldn't have bought a car otherwise?...
more at link

And the article referenced:

www.bloomberg.com...

Hopefully the lack of inventory means more demand at the factory.



[edit on 16-9-2009 by Dbriefed]


Didnt we all know these people would not have bought a new car otherwise? We did know it would drop off from there, and I am pretty sure they forecasted that as well..???? Esp. from chrysler, so that makes sense sales are down from the previous month, I am surprised its not more..

I dont get what he is trying to say here..



posted on Sep, 16 2009 @ 11:34 PM
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reply to post by GreenBicMan
 


The problem is the auto corps had a steady purchasing base, albeit well below the "normal" level, that per the population was way over inflated..

Instead of catering to the normal market they inject steroids to the market to hit the awesome inflated numbers precrash.

This attracted people who simply wouldn't buy, but also many, many, many people who were going to buy later, but took the offer early.

Thus the "normal" flow of business will be even lower than pre CARS program. This is what the CEO is sayin, that he may have shot himself in the foot. Its just ignorant business practice honestly.. everyone is dead set to have the economy we had in 06, but it wasn't healthy.. there wasn't a damn thing wrong with the auto companies except size and inventory.

Time will show this will hurt the third (most important) Q the most with reduced car purchases.. at the very least, CARS should have been implemented in November and December..



posted on Sep, 16 2009 @ 11:48 PM
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reply to post by Rockpuck
 


right -

well, actually what i heard from a poster on here in fact is that this was due to push out this years line of cars that were totally bunk to make room for the new.. which makes total sense..unless that is assumed and i am waay behind on this one lol

either way, i think the "big guns" HAD to have seen this coming, or else I am going to apply for GM and CHRYS Senior VP of Sales



posted on Sep, 17 2009 @ 12:01 AM
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reply to post by GreenBicMan
 


That's part of the oversized inventory.. this sale is an excellent time to purge inventory and keep it SMALLLLLLL .... will they? No, to keep suppliers solvant they have to boost production to increase inventory, which is what specifically crippled GM and Ford. They produced more than there was demand.

As for CEO's... grrr, they are sometimes pure morrons .. for instance the CEO of the company I worked for in 07 told us there wasn't a coming recession at all, and said he'd just bought half of down town to build these huge office towers (and invested in many other real estate ventures) ... needless to say, he fell on his face and the company has taken a huge blow. What does it take to be a CEO/CFO etc.. connections, "who you know, not what you know".

I've only known of one CEO that id consider intelligent at any significant level..



posted on Sep, 17 2009 @ 03:02 AM
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reply to post by mikellmikell
 


Probably because of demand from China. Those are just parts. Not whole cars.





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