This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

For Carmakers, Just How Bad Can It Get?

John Wolkonowicz, senior market analyst at Global Insight, projects 2009 sales of around 10 million, a number he calls "horrendous." He says, "The fourth quarter is going to be awful. We are continually lowering our forecasts as we get more information. We have lost consumer confidence, and credit is hard to get."

Announcing a four-week Christmas shutdown, Chrysler said its dealers have lost an estimated 20% to 25% of their volume because "willing buyers for Chrysler, Jeep and Dodge vehicles are unable to close the deals due to lack of financing."

Ford analyst George Pippas says the annualized sales rate declined sequentially through the year, from the low-15 millions in the first quarter to the low-14 millions in the second quarter, to the high-12 millions in the third quarter to the mid- to low-10 millions in the fourth quarter.

"We believe these numbers are going to persist well into 2009," Pippas says. "But there is so much uncertainty about the state of the economy that putting a specific number out there is a pie-crust forecast. It is easily made and easily broken."

One immediate result of a sales volume around 10.5 million would be that Ford may need a higher line of credit than the $9 billion it sought from Congress earlier this month. Ford said that request was based on a forecast of auto sales at the then-current rates, equal to 11 million in 2009 and 12.5 million in 2010.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
F $13.56 -3.76%
GM $31.80 -1.97%
HMC $26.96 -0.99%
TM $101.70 -1.22%
AAPL $93.74 -1.15%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs