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Domestic Vehicle Sales Plunge; Miss By Most Since Jan 2009

Tyler Durden's picture




 

We already noted the apparently 'transitory' weakness in GM's numbers and huge surge in channel-stuffing; but now the full numbers are in and it is not pretty. The annualized domestic vehicles sales collapsed (by the most in 29 months) to 11.66 million - it's lowest in 11 months - missing expectations by the most since January 2009. Stone McCarthy offers some hope that this does not signal "peak autos" for this cycle as they note, "it would appear that sales for September were pulled into August due to the extra selling days for August, stemming from the manner in which the Labor Day weekend fell on the calendar this year. Recall that August sales were firmer relative to expectations and now we have September being weaker."

 

 

and the details (from Stone McCarthy),

 

Did the Auto Recovery just end?

 

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Tue, 10/01/2013 - 15:01 | 4010928 SheepDog-One
SheepDog-One's picture

Dang...can't even GIVE em away for free anymore? Seems figuring out some way to create more debt is getting near impossible.

Tue, 10/01/2013 - 15:00 | 4010940 TruthInSunshine
TruthInSunshine's picture

ObaMobiles for everyone, just like on Oprah.

You get a new car! You get a new car! You get a new car!

Tue, 10/01/2013 - 15:03 | 4010949 Boris Alatovkrap
Boris Alatovkrap's picture

When drive economy over cliff like Thelma and Louise, auto sale is plunge.

Tue, 10/01/2013 - 15:04 | 4010957 SheepDog-One
SheepDog-One's picture

OH yea I remember those 2 crazy bitchez made me laugh!

Tue, 10/01/2013 - 15:17 | 4011024 Zer0head
Zer0head's picture

Where's RATTNER?

Tue, 10/01/2013 - 15:06 | 4010960 kaiserhoff
kaiserhoff's picture

From what I see on the road, every illegal and his dog already owns a new Pick Up Truck.

If you can't move tin at zero rates, you might have a problem.

Tue, 10/01/2013 - 15:12 | 4011000 TruthInSunshine
TruthInSunshine's picture

Whisper rumor that you will either be treated by physician or auto mechanic at ObamaCare appointment - luck of the draw.

Tue, 10/01/2013 - 15:15 | 4011018 Skateboarder
Skateboarder's picture

I'll take the auto mechanic. At least he's not 250K in debt and a ward of the state forevers...

Tue, 10/01/2013 - 15:20 | 4011042 Zer0head
Zer0head's picture

actually you'll be treated by the clerk at Walgreens

 

believe it

 

http://www.bloomberg.com/video/how-obamacare-impacts-the-business-of-pha...

Tue, 10/01/2013 - 15:30 | 4011091 Skateboarder
Skateboarder's picture

When you have a population that doesn't give a fuck about the source, content, and side-effects of any given magic pill, yet it is willing to pop that shit like M&Ms, what difference does it make that the 'prescription' comes from a 'doctor' or a 'pharmacist' or a regular clerk who hands the stuff out everyday?

Furthermore, when you have a population in which its doctor subset has been brainwashed to suck the dick of bigPharma, what good is a doctor anymore?

Tue, 10/01/2013 - 16:02 | 4011260 WillyGroper
WillyGroper's picture

+100

Tue, 10/01/2013 - 17:01 | 4011564 Tijuana Donkey Show
Tijuana Donkey Show's picture

At the pharm team glory hole. Doctor=Dealer

Tue, 10/01/2013 - 15:32 | 4011098 kaiserhoff
kaiserhoff's picture

True Story.

A friend was having no end of back trouble and was tired of the run around.

He told the Doc if things didn't improve, he would take his business to Bob's Wheel and Body Alignment.

Tue, 10/01/2013 - 17:03 | 4011570 Tijuana Donkey Show
Tijuana Donkey Show's picture

Tell him to get checked for a hernia. I went through it for 2 years until it blew out!

Tue, 10/01/2013 - 15:07 | 4010971 kralizec
kralizec's picture

Yeah, too bad the euphoria from the resulting explosion wears off quickly because of the next round of bailouts...  ;(

Tue, 10/01/2013 - 15:15 | 4010990 Emergency Ward
Emergency Ward's picture

Help, Obama Volt drive in ditch, is not can drive out.

Tue, 10/01/2013 - 15:17 | 4010980 Emergency Ward
Emergency Ward's picture

An Obama Volt for every garage.

Tue, 10/01/2013 - 15:08 | 4010984 Skateboarder
Skateboarder's picture

With built-in drone coverage!

Tue, 10/01/2013 - 15:13 | 4011004 kralizec
kralizec's picture

Part of the OnStar/NSA package...

Tue, 10/01/2013 - 16:17 | 4011361 FreedomGuy
FreedomGuy's picture

Call it the Snowden Tech Package

Tue, 10/01/2013 - 15:58 | 4011244 azzhatter
azzhatter's picture

Love to see the explanation from Phil LaBlow with the jizm still on his cheeks

Tue, 10/01/2013 - 16:38 | 4011448 Wahooo
Wahooo's picture

I love this news. In the market for a new set of wheels, so bring on the incentives baby!

Tue, 10/01/2013 - 15:02 | 4010941 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

It's good, it's bad, it's bad, it's good.

UP is down, Black is white.

Got it?

Tue, 10/01/2013 - 15:07 | 4010963 Boris Alatovkrap
Boris Alatovkrap's picture

<-- Make better car

<-- Moar better union pension

Tue, 10/01/2013 - 15:11 | 4010995 kralizec
kralizec's picture

It's a Soviet choice, there is only bad union made car and bloated union salaries & bene's leading to more bailouts...

Since the last round saw the bondholders get royally fucked, there is only government financing on goverment terms...

Pah!

Tue, 10/01/2013 - 15:12 | 4011003 Skateboarder
Skateboarder's picture

When ze bond bubble pops, no more pensions for anyone.

Tue, 10/01/2013 - 15:03 | 4010947 Grande Tetons
Grande Tetons's picture

Even at zero percent interest, the facts do not change. 

There are less mother fucking potential buyers. 

Tue, 10/01/2013 - 15:08 | 4010978 kaiserhoff
kaiserhoff's picture

All you need is four part time jobs and...

   naw, you're right.  It would cost more than your wages to drive to all those damn jobs.

Tue, 10/01/2013 - 15:45 | 4011146 Grande Tetons
Grande Tetons's picture

What does a scooter and a fat chick have in common?

Both are fun to ride until your friends find out. 

Tue, 10/01/2013 - 15:45 | 4011171 RockyRacoon
RockyRacoon's picture

Real friends wouldn't mind... in either case.

Tue, 10/01/2013 - 15:51 | 4011209 Grande Tetons
Grande Tetons's picture

Was a joke, Amigo. 

Tue, 10/01/2013 - 16:01 | 4011257 MisterMousePotato
MisterMousePotato's picture

A friend is someone who'll help you move house.

A real friend is someone who'll help you move a body.

Tue, 10/01/2013 - 16:09 | 4011294 Grande Tetons
Grande Tetons's picture

Especially a fat body. 

Better known as the coroner of ANNA NICLOLE SMITH rule. 

Tue, 10/01/2013 - 16:08 | 4011307 superflex
superflex's picture

Try riding a scooter to the golf course with your clubs or over to a friends in a downpour.

Go save a puppy or something.

Tue, 10/01/2013 - 16:17 | 4011349 LetThemEatRand
LetThemEatRand's picture

I think his point is that a lot of people simply don't have a choice especially in places with crappy (or scary) public transportation.  Welcome to the new working poor middle class.  Ford knew that his workers needed to afford what he was selling.  The MBA's running the shit show now just know how much money they can save by making shit overseas.

Wed, 10/16/2013 - 21:58 | 4063488 RockyRacoon
RockyRacoon's picture

I have a car, pea-brain.   And I don't play golf.  You're one of those folks who thinks that a gold-bug owns nothing else and lives under a bridge someplace.

You're a grumpy old coot ain't ya?

Tue, 10/01/2013 - 15:04 | 4010948 kurzdump
kurzdump's picture

Engineered crisis? Or why breaks all hell loose all of a sudden?

Tue, 10/01/2013 - 15:13 | 4010987 Grande Tetons
Grande Tetons's picture

This crisis has been engineered more than Justin Bieber's career. 

 

My only hope is that Bieber and the market crash side by side. Somehow, the world will be a better place. 

Tue, 10/01/2013 - 15:03 | 4010954 SheepDog-One
SheepDog-One's picture

Probably equity-bullish for at least another .5% by close. 

Tue, 10/01/2013 - 15:05 | 4010956 FieldingMellish
FieldingMellish's picture

Good for 10 more points on the Dow.

Tue, 10/01/2013 - 15:05 | 4010968 slaughterer
slaughterer's picture

Cars are a luxury that our fellow citizens must do without as they focus on their health insurance paymens.  

Tue, 10/01/2013 - 15:14 | 4011009 kralizec
kralizec's picture

Serfs were meant to pull their betters around in rickshaws anyway...plus all that running will either get them into shape of cause them to die off...either way it's win-win-win for Fedcoats!

Tue, 10/01/2013 - 15:08 | 4010976 slaughterer
slaughterer's picture

Need .... 3:30pm Ramp Capital ... to ramp ... the close ... make it all seem bullish ... and under control.  

Tue, 10/01/2013 - 15:14 | 4011005 syntaxterror
syntaxterror's picture

Time for a $5000 tax credit on government-approved vehicle purchases. Along with 0% interest government-guaranteed 10 year loans.

Tue, 10/01/2013 - 15:14 | 4011010 gjp
gjp's picture

Can't believe light trucks still outselling cars.  What a world.

Tue, 10/01/2013 - 15:39 | 4011135 JohnG
JohnG's picture

Easier to live in because you can lie down comfy in the bed.

Tue, 10/01/2013 - 19:32 | 4012047 The_Dude
The_Dude's picture

Cause some people still do real work, a-hole....

Tue, 10/01/2013 - 15:16 | 4011013 Bear
Bear's picture

TSLA well positioned to pick up the slack in the GM numbers ... people who can't afford a Chevy, maybe they'll buy a Model S

Tue, 10/01/2013 - 15:17 | 4011028 yogibear
yogibear's picture

Less suckers to take on subprime auto loans.

 

Tue, 10/01/2013 - 15:19 | 4011035 NEOSERF
NEOSERF's picture

Really wonder whether the indebted Millenial generation will want cars.  Think the lover affair is a bit over as the sexy cars cost way too much so we are left with simple transportation.  Between moving to mass transit and green movement and Zipcars and $4-5 gasoline, could see a structural shift starting here. 

Tue, 10/01/2013 - 19:09 | 4011949 ElvisDog
ElvisDog's picture

Another factor is that cars are more reliable these days. If you invest $1000-2000 a year in maintenance/repairs you can keep a car going basically forever. My 1997 Toyota Camry has 190K miles on it. My mechanic says it will last forever. There is no need for me to buy a new car.

Tue, 10/01/2013 - 15:23 | 4011050 Pig Circus
Pig Circus's picture

Place it on my grave stone " He never bought a GM once it became Obumbler Motors.

Tue, 10/01/2013 - 15:23 | 4011058 Bam_Man
Bam_Man's picture

Well, dammit, get those banks to write more 120% LTV 84-month sub-prime auto loans!

Tue, 10/01/2013 - 16:57 | 4011535 syntaxterror
syntaxterror's picture

We have a winner!

Tue, 10/01/2013 - 15:25 | 4011067 adr
adr's picture

You can't channel stuff 2014s if the 13s are still on the lot. This happened last year, my local VW dealer had 47 2012 Beetle Turbos at the end of November. That is just one model, there were over 300 2012s in their inventory.

A strange thing happened in January, in one day all the inventory disappeared. VW took back the cars, presumably to take a huge deduction for tax time. All year that inventory sitting on dealer lots counted as sold, until the end of the year when they had to take back the unsold cars. With fantastic Wall Street accounting, unsold inventory is a wonderful asset to offset taxes. That's how you end up with abandoned parking lots filled with brand new cars.

So once again you'll see insane incentives in October, $99 sign and drive leases on $20k cars. Kick the can again.

GM has a huge problem with leased Cruzes coming back. The values are falling through the floor. That $18k three year old Cruze is going to be selling for half that or less.

Tue, 10/01/2013 - 15:27 | 4011068 Bam_Man
Bam_Man's picture

Blame it on the weather.

Tue, 10/01/2013 - 15:33 | 4011108 yogibear
yogibear's picture

It always is a good excuse.

Tue, 10/01/2013 - 15:33 | 4011101 Rubbish
Rubbish's picture

$5 duct tape vs $450 month?

Tue, 10/01/2013 - 15:33 | 4011109 ebworthen
ebworthen's picture

Pundits talk about the age of the auto fleet and that people "must" buy new cars.

Well, you know, if you aren't driving to work because you don't have a job you aren't putting many miles on the old car, and you can't afford a new one.

To assume that things are like they were in 1995 or 1982 is a tragic failure of logic and observation.

Tue, 10/01/2013 - 15:41 | 4011140 Skateboarder
Skateboarder's picture

To be employed for pay in the [{d,m}is]information dispersal sector and to not present the assumption that things are like they were in 1995 or 1982 is a tragic career ending move. ;)

Tue, 10/01/2013 - 16:11 | 4011316 WillyGroper
WillyGroper's picture

04

66K mi. Should get another 200K easy.

No palm trees getting in the way.

Tue, 10/01/2013 - 15:35 | 4011119 starman
starman's picture

how about a 30year fixed with 5% and 5k down on your new toyota ?

there  i fixed it 

Tue, 10/01/2013 - 15:59 | 4011253 ebworthen
ebworthen's picture

Wonder when FHA will get into auto loans?

1% interest on a 30 year, $350 down, backed by the taxpayers.

They'll start with GM and Chrysler vehicles of course.

Tue, 10/01/2013 - 15:46 | 4011167 Totentänzerlied
Totentänzerlied's picture

If you don't have a decent-paying (viz cost of living) full-time job with some modicum of job security, you can't afford a car. But you can qualify for and receive a NINJA loan with $0 down and 0% intro API.

However, you still can't afford the paperwork, licensing, registration, plates, inspection, insurance, maintenance, repairs, and of course GAS.

So as the pool of people who can get the NINJA loan but still can't afford the car increases, yes, you will sell fewer vehicles. Rocket science and shit.

Temporary solution is to move to cities, which brings its own set of horrible, compounding problems to all and sundry, so it's not really a solution at all, just a sleight of hand, sweeping under the rug of a symptom of a structural problem.

Countries where it was decided that everything should be generously spaced apart from everything else - because everyone has a car* - now get to learn what happens when a major premise turns out to be false.

*Or, if you're more cynical: everything needs to be spaced generously, so that everyone will buy a car...

You'll want to retreat to a minimum distance of about 5 miles, when these zombie car companies, long dead, finally fall down.

Tue, 10/01/2013 - 20:11 | 4012200 ElvisDog
ElvisDog's picture

Gas costs is a big issue. There is no government SNAP card for gas.

Tue, 10/01/2013 - 16:11 | 4011327 corporatewhore
corporatewhore's picture

collapsing economies can ruin your whole day.

Tue, 10/01/2013 - 16:13 | 4011332 superflex
superflex's picture

Someone fire up those car crushing dumpsters.  

We need another cash for clunkers to rid the USA of worthwile used autos.

 

Tue, 10/01/2013 - 16:25 | 4011393 FreedomGuy
FreedomGuy's picture

No problems here. My company is turning in all fleet Malibu's early to get...more newer Malibu's. doing our part to help GM dump inventory.

Seriously, though, this is a perfect example of the severe problems created by government when it wades in to "fix" markets and save companies. By saving GM the government assured an oversupply of cars for the market. This hurts Ford nd al the others who might be enjoying better margins. Better margins lead to higher wages and private health insurance...Ooops.

Tue, 10/01/2013 - 16:15 | 4011340 Bob Sacamano
Bob Sacamano's picture

"stemming from the manner in which the Labor Day weekend fell on the calendar this year"

It's true - Labor Day was on a Monday this year.......the first Monday of September no less.........

Tue, 10/01/2013 - 16:18 | 4011358 superflex
superflex's picture

Bullish on Mitsubishi light trucks.

No, not really.

Tue, 10/01/2013 - 16:31 | 4011415 NOTaREALmerican
NOTaREALmerican's picture

Well, really, how MANY cars can people buy?

Interest rates went up and everybody has their new blinged-out BMW.     There will be a slight pause while the human pathological optimism adjusts to the new interest rates and then, off we go again.

Tue, 10/01/2013 - 16:44 | 4011492 rosiescenario
rosiescenario's picture

Well, if you got it, flaunt it....looks like the 1% club is doing fine and the rest of us...not so.

2013 Ferrari Sales:

"Countries with resurgent economies like the USA, Japan and the Middle East are all posting strong Ferrari demand, while struggling European nations continue to see Ferrari purchasing freefall. The home Italian market has slumped to just 3% of total Ferrari sales."

 

So Ben is doing his best to help bolster Italian auto production....AND IT IS WORKING. But, how's Detroit these days?

Tue, 10/01/2013 - 17:07 | 4011587 Yancey Ward
Yancey Ward's picture

Also, the Fall Equinox was on the 22nd this year rather than the 21st.  Also, some sales were pushed into October since Halloween is on the 31st this year for some odd reason.  And don't forget the Colorado floods.

Tue, 10/01/2013 - 17:22 | 4011647 22winmag
22winmag's picture

Screw new cars... my 38 year old Oldsmobile runs strong!

Tue, 10/01/2013 - 18:41 | 4011884 ncdirtdigger
ncdirtdigger's picture

See what sequester does to sales.

Tue, 10/01/2013 - 20:08 | 4012182 SilverMoney1
SilverMoney1's picture

Dont worry. Tesla will make new highs. 

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