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September sales at Ford are down 34% and the industry as a whole is down an incredible 26%. Interestingly luxury cars are being hurt the most with Porsche sales down 45%. Layoffs will be massive. What I wonder here is the chicken and egg question. Did sales collapse because people have no money or because they have no credit? Because so far sales of things that people normally don´t buy on credit are not down nearly as much.
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Antoin O Lachtnain on October 2, 2008 ·
Well, it’s all about sentiment too. A lot of people who can afford cars (either by cash or credit) feel that they will need the money or credit for something else.
The issue is that a new car is a discretionary purchase. It’s not something anybody really needs. With a bit of maintenance, cars last for a very long time indeed.
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Francisco on October 2, 2008 ·
What an ugly model you have chosen Martín. That might explain why sales are down! 🙂