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Chart Of The Day: The Unprecedented Implosion Of European Car Sales

Tyler Durden's picture




 

The graphic below, which presents an unvarnished picture of Europe's true economic state, needs no explanation:

Source: FT

In the context of the above, no explanation is also needed that quietly, and without much fanfare, French car-maker, Peugeot, and Europe's second largest after VW, was recently GMed, and received a government bailout.

Carmaker Peugeot gets $9.1B government bailout

 

The French government has agreed to underwrite up to €7 billion ($9.1 billion) of bonds issued by Banque PSA Finance SA, the financing unit of carmaker PSA Peugeot Citroen SA, allowing the French automaker to offer low-cost credit to its dealerships and clients amid a slump in sales.

 

Peugeot announced the deal on Wednesday, Oct. 24. It also said it had agreed the basis of a €10.5 billion restructuring of existing loans and asked banks to provide a further €1 billion of new debt to its finance unit.

 

The deals effectively immunize Peugeot's credit unit against recent downgrades of its parent's debt rating. That had threatened to drive the lending arm's rating to junk and would have forced it to increase the rates on loans to its own dealerships and to clients, hurting car sales that are already suffering from a Europe-wide slump.

 

The government, in return for the debt guarantees and its role in cajoling the banks to extend new loans to Peugeot, has demanded that Peugeot pay no dividends, undertake no share buybacks and issue no new share options to its managing board until the debt guarantees expire. Family-controlled Peugeot also agreed to add a workers' representative and a government appointee to its board.

 

"The government has no intention of making gifts without demanding anything in return," French Prime Minister Jean-Marc Ayrault told France Inter radio on Wednesday. "We ask the PSA group not to pay dividends, stock options or buybacks - that would be scandalous - and to concentrate on turning the company around."

Expect many more such bailouts as a relentlessly socialist and protectionist Europe does all it can to preserve much needed votes jobs in the critical, if greatly uncompetitive, carmaking sector, and all other sector, soon to follow.

 

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Tue, 12/04/2012 - 09:28 | 3032028 schatzi
schatzi's picture

I blame lack of parking space at European dealerships. Channelstuffing for the win!

Tue, 12/04/2012 - 09:34 | 3032043 GetZeeGold
GetZeeGold's picture

 

 

Expect quick action.......almost everyone in Congress drives a BMW or a Merc.

 

Hell.....word is even the UAW has a fleet of them. They've been expanding.

Tue, 12/04/2012 - 09:49 | 3032098 TruthInSunshine
TruthInSunshine's picture

In the meantime, the sale & heavily subsidized leasing (another form of a "sale") of cheap & small vehicles (many of which are made by still massively subsized and even outright owned in significant portion by Timmay-Sold-To-You-Mr./Mrs. Taxpayer) in the U.S. to warm bodies with a pulse and a FICO in the 500 range is continuing to rise, allowing for unicorn sharting skittles Main Stream Media headlines to pronounce that all is well & good in the U.S. hood, despite what's happening on the other side of the pond.

Tue, 12/04/2012 - 09:51 | 3032106 GetZeeGold
GetZeeGold's picture

 

 

It's an exhilarating feeling flying by the broken down Merc on the side of the road in my Kia.

Tue, 12/04/2012 - 09:58 | 3032129 francis_sawyer
francis_sawyer's picture

Fahrvergnügen bitchez!

Tue, 12/04/2012 - 10:05 | 3032165 Oh regional Indian
Oh regional Indian's picture

Peugeot 309, the best Front Wheel Drive car in the world, ever, period. Just for that, they deserve a bailout. (Disclaimer: I own one :-)  )

And as usual, the unreported part, since it might get the proles angry is that all these guys are ramping up their operations in the "3rd" world like crazy.

Huge core investment in manufacturing locally, sourcing locally, massive tax write-downs by a bought and paid for Indian government for CKD kits being assembled here... on and on.

GM is doing very well here, so is VW. MBZ even sold over a 100 Maybachs here in the past few years.

Tectonic shift in where the Connedsumers are.

That is the story behind this story.

the EU's commie-i-zation of the EU is marching on, clearly.

ori

Tue, 12/04/2012 - 10:14 | 3032219 TruthInSunshine
TruthInSunshine's picture

All I can say is that I give thanks that I don't live in that old school bastion of socialism that is Europe, where the government intrudes endlessy into the affairs of private enterpise and tramples on the markets on a daily basis, thus distorting all market functions and introducing massive inefficiencies:

Fannie, Freddie Halts Foreclosures For the Holidays

Happy Holidays, bitchez!

Tue, 12/04/2012 - 10:20 | 3032241 Urban Redneck
Urban Redneck's picture

Happy holidays to those in that new school bastion of socialism...

Tue, 12/04/2012 - 11:51 | 3032500 smiler03
smiler03's picture

Admittedly from August 2012 but the UK is doing well. UK car industry enjoys 22% rise in production:

http://www.guardian.co.uk/business/2012/aug/16/uk-car-industry-rise-prod...

Nissan’s plant in Sunderland produced more cars in 2011 than any UK car factory has ever produced in a year before. (480,000 cars):

http://www.telegraph.co.uk/finance/newsbysector/transport/8992045/Nissan...

Sales boost for Jaguar Land Rover, sales up 34.4%

http://www.bbc.co.uk/news/business-19193124

 

 

Tue, 12/04/2012 - 10:06 | 3032177 Freddie
Freddie's picture

I was driving last night and saw a newish dirty 3 series BMW with an Obama sticker.  One headlight was out and an Obama type woman talking on a iPhone.  What a joke.

Tue, 12/04/2012 - 11:31 | 3032457 francis_sawyer
francis_sawyer's picture

It was Trav who put her headlight out with a crowbar...

Tue, 12/04/2012 - 12:01 | 3032544 TruthInSunshine
TruthInSunshine's picture

Automatic +1 for the "JFC People!!!" Trav reference.

Tue, 12/04/2012 - 10:01 | 3032145 negative rates
negative rates's picture

That's great, cause once you finally drive your beamer into the ground and have to leave it on the highway. You can always return to the orignal meaning of the company logo and, Break My Windows, as you thumb for a ride back home to......buy another beamer, Washington city style. 

Tue, 12/04/2012 - 09:29 | 3032032 resurger
resurger's picture

 Seriously WTF!!!!!!!

Tue, 12/04/2012 - 09:33 | 3032045 CPL
CPL's picture

I know...Renault gets a bailout.  Like bailing out the maker of the yugo.  Nice engines but they are fucking U G L Y cars.

Tue, 12/04/2012 - 09:54 | 3032118 Cypher_73
Cypher_73's picture

Peugeot, not Renault. You are car maker fail.

Tue, 12/04/2012 - 11:16 | 3032413 Ratscam
Ratscam's picture

the iran embargo cut big time into the P&L of Peugeot. most foreign brand in iran. When will the people overthrough their government?

Tue, 12/04/2012 - 11:18 | 3032417 MachoMan
MachoMan's picture

Absolutely, the best way to tell the difference between the two is how large their smoke plumes are after the first couple laps of the F1 race...  (peugeot besting all other manufacturers, ever).

Tue, 12/04/2012 - 11:40 | 3032477 smiler03
smiler03's picture

Peugeots are smoking?

 

Nor surprising considering that they haven't made an F1 engine for 12 years.

Tue, 12/04/2012 - 12:39 | 3032660 MachoMan
MachoMan's picture

were...  it was a joke...  but I never underestimate the ability of people to ignore the obvious.

Tue, 12/04/2012 - 09:30 | 3032035 northerngirl
northerngirl's picture

Will the insanity ever stop?

Tue, 12/04/2012 - 09:34 | 3032048 CPL
CPL's picture

We'll pencil in lunch hour, but it'll have to continue right afterwards.

Tue, 12/04/2012 - 09:41 | 3032075 JPM Hater001
JPM Hater001's picture

Will it stop?  Hell, I'm about to get naked and start the party.

Tue, 12/04/2012 - 09:48 | 3032100 timbo_em
timbo_em's picture

Of course not. After all they are politicians and socialists. Hollande, Montebourg and Moscovici have just begun their journey.

Save financials 1.0: check. Save automakers 1.0: check. Save unviable steel producers: check. Save unviable shipyards: tbd. etc.

France is knee deep in doo doo while the French people still think France is going to save Europe. 2013 will be a very interesting year for the Grande Nation.

Tue, 12/04/2012 - 09:53 | 3032112 CH1
CH1's picture

Will the insanity ever stop?

I dunno. Reality has been suspended, leaving those of us with functioning minds feeling almost sick.

Where IS reality? Will it never return? Has evil replaced good forever?

Tue, 12/04/2012 - 10:07 | 3032158 SilverDOG
SilverDOG's picture

Where was reality?

 

Even those with functional minds in western society have been "mislead"

for a considerable duration. 

No worries needed. Regression to natural selection reality, about to ensue.

 

Tue, 12/04/2012 - 09:54 | 3032119 Ethics Gradient
Ethics Gradient's picture

Look, if you’ve been unsuccessful, you didn’t get there on your own. If you were unsuccessful at opening or operating a business, some government official along the line probably contributed to your failure. There was an overzealous civil servant somewhere who might have stood in your way with unreasonable regulations that are part of our system of anti-business red tape that allowed you to not thrive. Taxpayers invested in roads and bridges, but you might have faced city council members who wouldn’t allow you to use them. If you’ve been forced to close a business – it’s often the case that you didn’t do that on your own. Somebody else made that business closing happen or prevented it from opening in the first place.

Stolen and slightly edited from: http://thewhitedsepulchre.blogspot.de/2012/08/if-youve-been-unsuccessful-you-didnt.html

Tue, 12/04/2012 - 10:08 | 3032191 Spastica Rex
Spastica Rex's picture

What's good for the goose...

Tue, 12/04/2012 - 10:52 | 3032347 phalfa5
phalfa5's picture

you didnj't build that .....

Tue, 12/04/2012 - 09:30 | 3032036 Tirpitz
Tirpitz's picture

Well, seems due to rising exports the displayed car sales inside the EU had to be lower.

Tue, 12/04/2012 - 09:31 | 3032040 Capitalist
Capitalist's picture

Where is Daimler AG? People buying Mercs?

Tue, 12/04/2012 - 09:31 | 3032041 GeezerGeek
GeezerGeek's picture

I wonder - are sales of Lamborghinis and Ferraris up or down? That would show the health of the people who count, the .1%.

Tue, 12/04/2012 - 09:36 | 3032054 CPL
CPL's picture

Saudi' princes need something to drive their children to school as the fuck around toy. 

 

I would be interested in seeing Range Rover sales.  Hard to find an inch on the planet where there isn't one because of their tonka tough reputation and an engine that can run off a hobo's piss..

Tue, 12/04/2012 - 09:46 | 3032090 resurger
resurger's picture

my friend almost died in a Range Rover accident, his Auto Driver malfunctioned on 70MPH ... he sued them and won

Tue, 12/04/2012 - 10:16 | 3032225 francis_sawyer
francis_sawyer's picture

and I'll bet his jew lawyer made away with all the settlement fiats...

Tue, 12/04/2012 - 12:20 | 3032613 CH1
CH1's picture

(Breaking my own rule on trolls, but once in a while...)

Fuck you, you biggoted piece of shit. Deal with your own goddam sins.

Tue, 12/04/2012 - 14:19 | 3033006 resurger
resurger's picture

lol , no he was not a kyke

Tue, 12/04/2012 - 09:52 | 3032111 DavidC
DavidC's picture

They were good until they became bloated bling mobiles driven by arseholes.

DavidC

Tue, 12/04/2012 - 09:56 | 3032125 Cypher_73
Cypher_73's picture

This ^

Tue, 12/04/2012 - 12:23 | 3032612 smiler03
smiler03's picture

 "They were good until they became bloated bling mobiles driven by arseholes"

 

OMFG!! Are you suggesting British Royalty are arseholes?

Be right back, there's a knock at the door. The Police are outside...... in a Range Rover?

http://www.flickr.com/photos/policeblue999/6922666850/

Tue, 12/04/2012 - 14:07 | 3032957 Winston Churchill
Winston Churchill's picture

I was visiting the Range Rover production line the day the first model

being exported to the US came off the line.My host,the line manager,

put me in the first car off to try.It had just passed QC.

Most everything in the car didn't work.Hope they got better.

Tue, 12/04/2012 - 11:54 | 3032517 smiler03
smiler03's picture

@ CPL

 

August 2012. Jaguar Land Rover has increased sales by a third.

http://www.bbc.co.uk/news/business-19193124

Tue, 12/04/2012 - 09:44 | 3032057 GetZeeGold
GetZeeGold's picture

 

 

are sales of Lamborghinis and Ferraris up or down?

 

Those guys only sell their cars to people that have atually earned their money.....and they don't have to report crap to the public.

Tue, 12/04/2012 - 09:53 | 3032113 Rip van Wrinkle
Rip van Wrinkle's picture

Bankers EARN money??

 

Please, do fuck off. Steal more like.

Tue, 12/04/2012 - 10:08 | 3032186 GetZeeGold
GetZeeGold's picture

 

 

Dude we don't steal it.....we print it. Then we leave for home in our Ferrari's.

 

Instructional video.

http://www.youtube.com/watch?v=6Q6VsR_4PuQ

Tue, 12/04/2012 - 10:12 | 3032208 Spastica Rex
Spastica Rex's picture

Buy American

Those guys in Brunei do.

 

Tue, 12/04/2012 - 14:11 | 3032980 ali-ali-al-qomfri
ali-ali-al-qomfri's picture

I was working in Switzerland when a new Ferrari engine and mechanic came in from Italy on a 767 Royal Brunei flight just for this mission, (I got on board to look at the aircraft it had gold faucets and was pimped liked I’d never seen). The story was that the Ferrari that was shipped just 3 weeks before was unloaded and driven right away,before oil was added and the engine seized on the tarmac, hence 'Fabio' was being picked up and flown personally to bring a new engine to install. 

Tue, 12/04/2012 - 09:43 | 3032080 Joe Davola
Joe Davola's picture

I figure their sales have to be skyrocketing to the 'need to make a quick trip to Switzerland' crowd.  Of course, they might need a little more space for 'junk in the trunk' on the return trip.

Tue, 12/04/2012 - 09:50 | 3032099 moriarty
moriarty's picture

Lambo’ is part of the VAG group (apparently that why they are more reliable these days, sadly not that I am in a position to know) and the prancing horse is owned by Fiat.

 

Tue, 12/04/2012 - 09:52 | 3032109 forwardho
forwardho's picture

 GG, Will try to find link for you, In Italy, ferraris are being stoned, keyed and vandalized. There is a glut of used high end cars on the market. This is the natural conclusion to the all pervasive "class warfare" meme that has been promulgated by the Govts and media of the world. What has been sown, will reap but a bitter, meager yield. This misdirection has become a part of your very being. The ignorance of our people, will in the end, destoy us.

Tue, 12/04/2012 - 09:35 | 3032055 desirdavenir
desirdavenir's picture

PSA should really try to sell cars in the US: around 60 miles/gallon, price around 15000€ for standard cars...

Tue, 12/04/2012 - 09:42 | 3032077 CPL
CPL's picture

The Ford fiesta and the Nissan swift get 70 and they cost 13,500 Canadian, or 10,000€, plus they come with options.  They don't last very long in a hard winter though.

 

They are very cute cars though.

Tue, 12/04/2012 - 09:56 | 3032123 Imminent Crucible
Imminent Crucible's picture

I don't understand the collapse in GM Europe sales. I thought the Euro crowd would be tickled to death to get a nice green Volt  with a 20 mile operating range for only about €30,000 plus 21% VAT and "We Hate Everything American" tariff. Maybe it's the occasional unexpected 4th of July fireworks display.

Tue, 12/04/2012 - 10:01 | 3032143 Cypher_73
Cypher_73's picture

Meh Europe already has a slew of great looking subcompact cars. Wish they'd come to N. America but they never will whatwith str8 men here being size queens and all. Like a full sized pick up *really* makes up for a teeny tiny schwanz.

Tue, 12/04/2012 - 10:05 | 3032166 Imminent Crucible
Imminent Crucible's picture

What? You're not happy with a Smart For2 to go along with the tiny todger?

Tue, 12/04/2012 - 11:26 | 3032439 MachoMan
MachoMan's picture

That and american men are not midgets...  when we ride in compact cars it's like a bear riding a unicycle.

Tue, 12/04/2012 - 10:17 | 3032227 zkay
zkay's picture

Your estimates are quite high.

 

http://www.fuelly.com/car/ford/fiesta

 

Avg: 35mpg

Tue, 12/04/2012 - 11:23 | 3032430 Ratscam
Ratscam's picture

toyota iQ or in the US called Sion has an even better mpg ratio, but the latter a horrible name attached to it ......

Tue, 12/04/2012 - 14:14 | 3032963 CPL
CPL's picture

No they aren't. 

They are coveted for their after market parts hacking because of that VTEC engine and the FACT it's a Toyota echo with better aerodynamic body design.  Unless the US build is different than the Euro/Canuck/Indian version.  You couldn't sell a sub compact with under 40 MPG in any country with the fuel premiums here and anywhere not the USA.  It's marketed at 58 MPG, with $800 in after market parts, tunes and rechips and easy installation (like you can do it yourself in a morning).  I can promise you either car listed above will, not MIGHT, will give you another 25 MPG minimum.

http://ecomodder.com/ 

If you don't feel like buying a new car.  (lol, why would anyone)  Search your car name you have and you'll find the average out of box MPG.  Then the mods you can do in ten minutes with a basic toolset and the specific after market parts listed.  The grand in mods will boost that models fuel economy by 80-200%. 

Best car for the buck if looking at eco modding isn't the ones I've listed.  It's the Caveliers, G5's and Chevy Blazers.  First the cars are cheap and the engines have power, just really, really baddly designed airflow, ECU and AC systems.  Putting $800 in a decent CAI, header extension, AC replacement (huge fuel pig), a tuned ECU plus you get to keep the power of the engine. It's a no brainer when owning a car out of warranty.

ROI period if you match the average driver is 4 months for an investment of $500 that will keep 2000 dollars a year of after tax money in your pocket.  That was calulated on a toyota echo.  On a truck, I bought my blazer for the reasons above (plus it's sweet looking), put in the $800 in parts, I get around 39 on average on highway AND I get to keep the power of the truck when I need it.  There are more things I can do like gear replacements and exhaust system, but they can be complex to do and costly (margin of error and all that).  Anycase, check it out.  Something as simple as removing the roof rack can improve fuel consumption by 15-25%.  Nitrogen in tires is another.  Weight reduction kits (some are so cool.  Spring can't come soon enough to work on it.)

There are guys on there that do the 1 gallon test, I believe some guy got to 75 with his documented and filmed list of mods.  Any performance modification that keeps RPM's low and power high...of course if you drive like a nut it doesn't matter the technology used.

 

 

Tue, 12/04/2012 - 09:35 | 3032056 semperfi
semperfi's picture

Sandy's fault. If not, then Bush's fault.

Tue, 12/04/2012 - 09:51 | 3032108 BraveSirRobin
BraveSirRobin's picture

Sandy is Bush's fault

Tue, 12/04/2012 - 09:58 | 3032128 Imminent Crucible
Imminent Crucible's picture

And Bush is Bush, Sr.'s fault.

We're not sure whose fault Barack is, but we suspect Frank Marshall Davis. They're trying to blame Barry on some goatherd.

Tue, 12/04/2012 - 09:36 | 3032060 youngman
youngman's picture

Mercedes lost a bunch on the east coast....bring em over baby....Johnny Pocketchange needs a new one..and they want the Federal Government to cover it all

Tue, 12/04/2012 - 09:38 | 3032063 Rainman
Rainman's picture

Something is interrupting the consumer debt flow. If it's consumer common sense, the state must do everything in its power to subvert it.  

Tue, 12/04/2012 - 10:18 | 3032238 reload
reload's picture

Car sales may be cliff diving - but Bicycle sales in the UK are on a tear. Both as `lifestyle/sporting` gadgets but also as ways to get to work. The sunday times has 2 online cycle retailers in its fastest 100 growing business list. Suprise suprise - both the listed firms offer credit to purchase their goods. Obviously most of the goods are not made in the uk. Import shit and sell it on credit the UK business model in a nutshell.

Tue, 12/04/2012 - 09:40 | 3032068 JPM Hater001
JPM Hater001's picture

How about sales of scooters?

Tue, 12/04/2012 - 09:44 | 3032086 Joe Davola
Joe Davola's picture

At little or no cost to you!

Tue, 12/04/2012 - 09:56 | 3032122 GetZeeGold
GetZeeGold's picture

 

 

Casey Jones you'd better watch your speed! Operating your free scooter while on your Obamaphone is highly discouraged.

Tue, 12/04/2012 - 10:05 | 3032169 negative rates
negative rates's picture

Here's the story about the scooter, and the scooter motor. Motor on scooter  : > )

http://www.youtube.com/watch?v=xrOek4z32Vg 

Tue, 12/04/2012 - 09:40 | 3032069 rsnoble
rsnoble's picture

In the US anyone making $300wk before taxes can qualify to buy a $45k car.  Maybe the EU should consider this as well.  Of course you may have to get used to smaller living quarters but at least you did your part.  Nothing like seeing 20 somethings living with mom and dad with 30k or so of college debt, a job at home depot and a brand new camaroGT sitting out front.  

Tue, 12/04/2012 - 09:47 | 3032096 insanelysane
insanelysane's picture

As I said in my post, they are offering 84 months to pay it back.  Buy one next year and your last payment will be in 2020.

Tue, 12/04/2012 - 10:01 | 3032142 rsnoble
rsnoble's picture

I hope you mentioned to your daughter that the insurance companies will love her also. Full coverage for 7 years.  Not to mention jacked up rates for being so young but not to worry if you can get thru the 7yr probationary period with zero tickets or accidents will give you a 10% discount on your next car purchase which will be immediately after this one because no plastic piece of shit is going to last longer than that and combined with wage stagnation and/or declines the next note will probably be for 10years.

Speaking of which I just about have my '55 chevy ready to roll as a daily driver I thought that would be funny.  Oops, I just bought a fully rebuilt 350 with moderate mods for a few k and installed it myself and it's good for at least a 100k.  Of course I admit the new wingding models are better suited for $8gallon gas.  Still not sure how people with $500 month hybrid payments are saving money.

Tue, 12/04/2012 - 10:39 | 3032303 insanelysane
insanelysane's picture

I have a 10 year old truck and a 30 year old motorcycle that don't owe me anything.

Tue, 12/04/2012 - 09:40 | 3032071 nonclaim
nonclaim's picture

"We ask the PSA group not to pay dividends, stock options or buybacks - that would be scandalous - and to concentrate on turning the company around."

Well, at least there's some common sense attached to the bail-out...

Tue, 12/04/2012 - 12:40 | 3032668 Vendetta
Vendetta's picture

"Well, at least there's some common sense attached to the bail-out..."

Rare, but someone will complain bitterly about it.

Tue, 12/04/2012 - 09:43 | 3032079 Snidley Whipsnae
Snidley Whipsnae's picture

Some students can afford autos...

Students and the Sex Industry: Empowering or the Last Resort of the Debt-Ridden?

http://www.independent.co.uk/news/uk/home-news/students-and-the-sex-industry-empowering-or-the-last-resort-of-the-debtridden-8376363.html

Sex always sells...

Tue, 12/04/2012 - 10:00 | 3032138 Imminent Crucible
Imminent Crucible's picture

Yeah, right. I haven't been able to sell any for over 30 years. My wife is such a tightwad.

Tue, 12/04/2012 - 11:28 | 3032445 MachoMan
MachoMan's picture

Better than a loosewad I guess...

Tue, 12/04/2012 - 12:48 | 3032687 Vendetta
Vendetta's picture

Society's decay starts with monetary debasement....  Lenin said something about it

Tue, 12/04/2012 - 14:07 | 3032959 Midas
Midas's picture

I am the walrus.

Tue, 12/04/2012 - 09:44 | 3032081 Rustysilver
Rustysilver's picture

At least Euros have an option; they can take the public transport. Try that in USA.

Tue, 12/04/2012 - 13:25 | 3032794 Tsunami Wave
Tsunami Wave's picture

Touche.  In England, tt might be pretty damn slow and often expensive when using public transport, but it is cheaper than owning a car.

Tue, 12/04/2012 - 09:44 | 3032084 overmedicatedun...
overmedicatedundersexed's picture

if you are not selling bullet/bomb proof cars..you got nuth'n..the new hot item. the 1% have spoken.

Tue, 12/04/2012 - 09:45 | 3032088 insanelysane
insanelysane's picture

So my 20-something daughter went car shopping over the weekend.  They offered her an 84 month loan on a $15k car.  That is not a misprint.  Fortunately she has been listening to my debt is bad rants and is still looking.

Tue, 12/04/2012 - 10:02 | 3032149 Imminent Crucible
Imminent Crucible's picture

Ask her, "Which would you rather do: Pay the car lot $15k, or pay the banker $20k for the same car?"  That's what I asked all my kids.

You know, it's a funny thing. They all moved out early.

Tue, 12/04/2012 - 10:11 | 3032206 IrritableBowels
IrritableBowels's picture

15K, or 20K for that matter, may as well be 16T for most of the eighteen year olds I'm familiar with.

Tue, 12/04/2012 - 11:03 | 3032378 edifice
edifice's picture

Soon it'll be 10-year loans, designed to mature when the car expires. This way, everyone will have a perpetual car payment.

Tue, 12/04/2012 - 14:23 | 3033028 Winston Churchill
Winston Churchill's picture

The never never.

Never worth its cost,never yours until its worthless.

Tue, 12/04/2012 - 09:45 | 3032091 Dr. Engali
Dr. Engali's picture

Apperently Obama couldn''t save their auto industry and make it flourish like he did ours. Now if he will just get on to that lowering of the seas thingy.

Tue, 12/04/2012 - 10:19 | 3032243 GetZeeGold
GetZeeGold's picture

 

 

Now if he will just get on to that lowering of the seas thingy.

 

Umm......where will all the fish live?

Tue, 12/04/2012 - 10:40 | 3032310 insanelysane
insanelysane's picture

O likes picking winners and losers.

Tue, 12/04/2012 - 13:01 | 3032724 knukles
knukles's picture

Which have the big butts?

Tue, 12/04/2012 - 09:48 | 3032095 Peter Pan
Peter Pan's picture

I wonder how the sales of car tyres, of car washes and panel beating shops are going.

This crisis is being wasted by not allowing new paradigm shifts to develop. We are still obsessed with resurrecting the excesses of yesteryear. The demise of the car should have been met with greater investment and efficiencies in public transport.

Tue, 12/04/2012 - 09:50 | 3032102 BraveSirRobin
BraveSirRobin's picture

Does anyone actually think we will ever run out of money?

Tue, 12/04/2012 - 10:15 | 3032221 madcows
madcows's picture

nope, we can borrow forever.

YES WE CAN!

Tue, 12/04/2012 - 11:50 | 3032508 BraveSirRobin
BraveSirRobin's picture

"YES WE CAN!"

Now say it in Spanish, and your transformation will be complete.

Tue, 12/04/2012 - 09:54 | 3032117 BraveSirRobin
BraveSirRobin's picture

Car sales by brand can be volitile month-to-month. If you exclude sales of Ford, GM, Peugeot, Fiat, Renault, BMW, and "others", sales were really quite stable from last month.

Tue, 12/04/2012 - 12:59 | 3032716 knukles
knukles's picture

We're elated Ferrari, Aston Martin, Rolls Royce and Lamborghini did so well?

Tue, 12/04/2012 - 09:55 | 3032120 topspinslicer
topspinslicer's picture

in europe do they provide for zero percent financing on the $8 a gallon gasoline (substitute liter and petrol -- I don't want to be considered the ugly amerikan after all)

Tue, 12/04/2012 - 12:13 | 3032587 smiler03
smiler03's picture

In the UK you certainly can get 0% finance but a substantial deposit of 20% and upwards is normally required.

Tue, 12/04/2012 - 09:56 | 3032126 new game
new game's picture

wish/think/realization(we are fucked), is now classified as a mental disorder.  think accordingly...

Tue, 12/04/2012 - 10:12 | 3032209 forwardho
forwardho's picture

NG, do you have facts to back this up? I've long held suspcions of this. You may not be doing anything "wrong" now, but what is concidered "wrong" can change in an instant. Everything is being stored. You cannot take back your words. Be assured, they will be reassesed when the "definition" has been changed.

Tue, 12/04/2012 - 12:57 | 3032710 knukles
knukles's picture

So does that make "We're not all fucked, just screwed forever." OK?

Tue, 12/04/2012 - 09:58 | 3032131 Ox
Ox's picture

Must be the only place in the world that's cutting back on Fiat...

Tue, 12/04/2012 - 10:04 | 3032160 farmerjohn2112
farmerjohn2112's picture

<groan>

Tue, 12/04/2012 - 10:00 | 3032134 SilverDOG
SilverDOG's picture

Invest in shoe companies.

We all, shall soon be walkin'... or standing in line.

 

Tue, 12/04/2012 - 11:20 | 3032425 toomanyfakecons...
toomanyfakeconservatives's picture

A sound strategy indeed.

Tue, 12/04/2012 - 10:06 | 3032167 lindaamick
lindaamick's picture

Just tack on another subsidy this time to the European auto industry.  More extraction from workers to prop up a model that siphons monies from workers to elites.  Have to pay those auto industry execs big bonuses. 

Look at any big institution...corporations, churches, military and you will see top heavy structures with top brass making millions with fewer and fewer workers making crapier and crapier products.  

Another day in the zero sum capitalistic universe.

Tue, 12/04/2012 - 10:14 | 3032217 madcows
madcows's picture

well, the autodealer bailout , er vote purchase, worked for Obama, so you had to think they'd implement their own soon after.

Tue, 12/04/2012 - 10:17 | 3032231 rsnoble
rsnoble's picture

BTW you have to hand it to the bankers for figuring out a way to enslave young people with right from the get-go.  Why wait around for them to buy a house, we want your servitude now!  It's just a race from one group of thugs to another to who see can fuck them first.  You can get a student loan and a car loan and now be fucked for life.  Soon I suspect legal age parameters will have to be dealt with so they can go after the high schoolers. Surely you could handle 29.5 hrs a week working at Mcdonalds so you can buy that new mustang, no cosigner needed for anyone over 12.  Of course so that colleges can keep plowing it in also they will have to lower admission standards drastically.  No GED, no problem!  Sounds crazy but don't think for a moment that psychopath CEO's don't have these thoughts.

Tue, 12/04/2012 - 10:53 | 3032341 Dapper Dan
Dapper Dan's picture

Accurate portrayal of the bankers credo.           Noble, green 4U

 US bank earnings up 6.6%, most in 6 years - @AP

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Tue, 12/04/2012 - 10:40 | 3032307 Seasmoke
Seasmoke's picture

Well I take it Mercedes is doing quite well ?

Tue, 12/04/2012 - 11:03 | 3032374 Super Broccoli
Super Broccoli's picture

It's so bad in europe that noone respect H. Ford predicables : make a car your workers can buy ...

 

since they are all relocating outside europe right now !!!!

Tue, 12/04/2012 - 11:19 | 3032423 smacker
smacker's picture

The French Govt bailing out Peugeot? Erm...didn't anyone tell them that bailing out any corporation is prohibited across the EU? Or does that only apply to other member states?

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