Saturday, April 4, 2009

Follow-up Report: General Motors and Chrysler March sales report; 39% fell down at Chrysler, and 45% decrease for GM. Both automakers shut down plants

Due to Obama's administration rejecting GM and Chrysler's viability plan, and setting close deadlines for new plans or else the two companies will go bust, and Canada following suit, both General Motors and Chrysler are now paying what they "deserved".

Sales last March was poor for most automakers. It was even worse of these two desperate car makers from Detroit. Chrysler recorded a 39% fall down overall, compared to the same period last year. Chrysler finished March with 349,612 units of inventory - an 87-day supply. Inventory is down 17 percent when compared to March 2008, which totaled 423,607 units.

At GM, things are more of the same, but worse overall. General Motors said today that its March sales dropped 45% when compared to the same period a year ago. It said that it sold a total of 156,380 cars and trucks last month. General Motors shouldn't expect any increase this April, in fact more loss is to be predicted. Because the Detroit Free Press, has made its latest study survey, concluding that 76% of American tax payers believe their economy can survive without GM.

More worryingly though, in the DFP's survey, 62% of the Americans said neither GM nor Chrysler should receive any more loans, and that they agree with Obama's deadlines. 59% of the Americans also suspect that both GM and Chrysler will go bankrupt in the next few years.

With bankruptcy now as a big option for GM and Chrysler, both secured court orders to remove their equipment from Canadian parts supplier Transcast Precision. The move shut down two Chrysler plants in Canada on Thursday putting a stop to the production of the Chrysler 300, Dodge Charger and Challenger in Brampton. The General also suffered from one factory closing. Which all translates to major cut-off jobs.

At this point, all we can say is,

Hold on, Detroit! Except for Ford, they're doing OK.

Source : [Chrysler, General Motors, Free Press, Detroit Free Press, Detroit News]

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