Ford (F), GM (GM), and Chrysler have continued to maintain the hope that car sales will turn in the second half of the year. Since they have been falling by double digits each month, it is better to dream than to give in to despair.
Nissan may have expressed a more realistic view when its said its earnings in the last quarter were weak and that their fiscal 2008/2009 would be down because of high commodities costs and a battered US market.
Nissan’s US sales rely more on light trucks while its competitors Honda (HMC) and Toyota (TM) tend to market smaller sedans. That makes Nissan’s product line almost identical to Ford and GM. Sales of SUVs and pick-ups have fallen apart, and gas prices will not make a recovery in those segments possible.
Light trucks are the most profitable product lines for the big US car companies. With the market for those falling an earnings recovery for the Big Three in their home market is not possible.
Nissan is showing Detroit the way and it is down a bleak road at best.
Douglas A. McIntyre
Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
