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Despite LeBeau-gasms, Domestic Vehicle Sales Slide For 2nd Month In A Row, Miss By Most In 5 Months

Tyler Durden's picture




 

Well this is a little awkward. After a day of exuberant unsubstantiated auto sales proclamations that a) it's not all subprime, b) 8-year credit terms do not pull forward demand, and c) it's totally sustainable; anyone could have been forgiven for being excited about the total vehicle sales of 18.12mm (according to Wards' data), just above expectations of 18.10mm and flat from October. However, Wards reported just 14.03mm domestic vehicles sold (missing expectations by the most since June) and dropping for the 2nd month in a row. Those darned facts do get in the way eh?

 

Recessions happen at the funniest times eh?

 

Domestic vehicle sales are up just 2.6% YoY... and that is as credit soars to this sector...

 

Should we worry? Well it seems we will not be relying on China to save us?

 

 

We are going to need more up and to the right of this...

 

Charts: Bloomberg

 

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Tue, 12/01/2015 - 18:47 | 6862931 economessed
economessed's picture

Health care is killing our ability to buy cars.  Hey Detroit -- realize that your competition doesn't show up on 4 wheels -- unless it's a gurney.

Tue, 12/01/2015 - 18:54 | 6862958 Winston Churchill
Winston Churchill's picture

Better swap those production lines to ambulances.

Tue, 12/01/2015 - 18:56 | 6862968 Analog
Analog's picture

Health care is killing our ability to buy cars.  Hey Detroit -- realize that your competition doesn't show up on 4 wheels -- unless it's a gurney.

HEALTH CARE is avoiding toxic chemicals, eating a balanced diet and getting plenty of exercise.  Screw cars and their toxic emmissions, walk and ride your bike.

... You DO own a bike or two, yes?

 

(Liked your post, economessed, upvoted you for the gurney part  xoxo)

Tue, 12/01/2015 - 19:29 | 6863109 scintillator9
scintillator9's picture

One can exercise, eat a balanced diet, avoid toxic chemicals all one wants, and then one wakes up to fact that one needs to breathe the air, and drink the water, and eat the food that has been raised in the soil and watered with what water again?

Where did the juice in that juicy apple come from? Did the apple tree filter out all of the toxins in the water it was irrigated with? Is that organic apple really organic, or did one just fall for a hilarious bait and switch scam?

And then there is always the unforeseen, such as being plowed over on one's bike by a person who dropped their doughnut, or was texting, or both.

Myself, I walk to many of my local destinations as a by product of high fuel prices from the recent past, and decided I liked doing this.

Yet, even in a crosswalk, and having the right of way will do fuck all if someone runs the light, but runs me down.

Tue, 12/01/2015 - 19:48 | 6863197 glenlloyd
glenlloyd's picture

Hey Sphinctilator9, shit happens, people get hit every day walking or riding a bike. Drought happens, not for any reason that we're responsible for but it happens. People out in CA are so surprised that the last century in CA was the anomaly not the norm...you live in a desert, get used to the desert.

Let's hope the store you get your organic apples from doesn't pull a bait-n-switch with the toxic apples.

If the toxicity of the auto emissions in the 50s/60s didn't kill the planet I find it hard to believe that it will now.

You can walk behind my diesel car if you like...

Tue, 12/01/2015 - 20:37 | 6863302 Analog
Analog's picture

@scintillator9  Not sure what the purpose of your post is, but obviously you read mine - thanks!

Currently I'm living near Houston, TX, I love it here (compared to other places in the USSA I have lived), but the air and water (both drinking and Galveston Bay) are terribly polluted from the oil refineries and chemical plants (and people).  I deal with the water I drink, but don't have complete control over the water the food I eat does ... I know exactly where most of the food I eat comes from (do you?).  One of the things I intensely dislike about this area is the dearth of facilities for bikes and pedestrians ... but the abundance of organic food (including raw, unhomogenized grass-fed milk, grass-fed beef, pasture-raised chickens ... !!) and personally knowing the people who grow most of my produce keeps me here ... for now.

Yes, I am concerned about all the people driving while on their cell phones and (un/prescribed) drugs, and how the government spends my taxes ... what is the point of your post?

@ glenlloyd Let's hope the store you get your organic apples from doesn't pull a bait-n-switch with the toxic apples.

Was that aimed at me??  If so, I was poisoned by pesticides in 1985 and one side effect is that I am forevermore chemically sensitive - no "bait-n-switch" with me, I'll have a reaction.

Tue, 12/01/2015 - 19:37 | 6863139 economessed
economessed's picture

Analog - why yes, I do own quite a few bicycles.  More than most people would think reasonable.  And I do operate them year-round in Wisconsin, no less.

But I got back to my original point that Charles Hugh Smith referenced earlier today -- astronomical health care costs are biting into the consumer's ability to buy new cars.   Detroit needs to figure out what the health care industry did:  buy congress, pass a law mandating new car ownership, force people to buy cars in dealership exchanges (or pay a penalty), subsidize a huge chunk of the car buying public, promise people that if they like their mechanic, they can keep their mechanic, raise the cost of new cars by 35% per year, and then they can force health care providers to experience decreases in annual sales because they suck all the remaining non-taxable income from the pockets of people.  Oh, and by the way, if you want to buy your car in Canada, it costs 1/54th as much as it does in the US.

Tue, 12/01/2015 - 20:21 | 6863349 Analog
Analog's picture

Analog - why yes, I do own quite a few bicycles.  More than most people would think reasonable.  And I do operate them year-round in Wisconsin, no less.

Ooh, for a while I commuted by bike year-round near Denver ... you have my deepest respect!!

I'm down to two bikes ... and can't use either one here without driving someplace to ride them (grrrr!) but I"m just passing thru.

"Health Care" is a sore point for me, I voted for Obummer because his health care plan was Eat Right and Exercise - and look what we got - a nation of drugaddics who do neither.

Oh, and by the way, if you want to buy your car in Canada, it costs 1/54th as much as it does in the US.

No thanks!  I own my last car, and not for much longer.  (Good info for some people though, I'll pass it on.)

 

Tue, 12/01/2015 - 18:53 | 6862955 CHoward
CHoward's picture

But...but...CNBC's Phil LeBeau was practically out of breath with all sorts of GREAT and AWESOME news about the YUGGGGGGE car sales.  Think he might have been exaggerating just a tad?

Tue, 12/01/2015 - 18:57 | 6862970 abyssinian
abyssinian's picture

Phil LaBUll is busy writing more Bull for tomorrow's Power Lunch 

Tue, 12/01/2015 - 19:01 | 6862985 buzzsaw99
buzzsaw99's picture

june sez ward was hard on the beaver last night

Tue, 12/01/2015 - 19:03 | 6862995 ghostzapper
ghostzapper's picture

Fire up the Ten Year Financing Plans marketing propaganda.   

Tue, 12/01/2015 - 19:12 | 6863036 Bruce Gender
Bruce Gender's picture

I get brain in the whip, who needs a smart car?

 

No need to panic about car sales, Barry will issue an executive order to buy moar cars...or increase "access" to financial services to "low-income" consumers.

 

All in a day's work. Well played, socialists. Well played.

Tue, 12/01/2015 - 19:13 | 6863040 Cash Is King
Cash Is King's picture

Anyone else happen to see "buy 1 get one free" in their town? I did! A Chevy dealership in town had a sign twirller showing one day only. Pure desperation was my first thought, clearing the channel stuffing was a second.

Tue, 12/01/2015 - 19:17 | 6863060 villainvomit
villainvomit's picture

LeBeau=gasms....hahaha!

Tue, 12/01/2015 - 19:19 | 6863067 Omen IV
Omen IV's picture

one by one all the possibilities are rolling over for any flexibility in the system.

oil capex is gone / general  capex / local government going off the air with Puerto Rico in the lead / consumers discretionary  / cars /  last one to go is single family housing......  then the deluge

Tue, 12/01/2015 - 19:23 | 6863081 Bit Coin Hacker
Bit Coin Hacker's picture

Why is that Murdock Rag MarketWatch claiming 18.1 gazillion cars sold. I was in the car biz (let the bashing begin) for 20 years in Orange County, Ca.and as I've driven down Beach blvd. in Surf City (HB) I haven't seen dick on the all to familiar car lots. I do see about 20 cars parked in front of the local Ar., Nv., AF, and Marine recruiting shack which has 4 soldiers workin' it. Go figure 

Tue, 12/01/2015 - 19:39 | 6863156 lucky and good
lucky and good's picture

Prepare yourself for a price war in the automotive sector. Because many people have chosen to lease cars in recent years we are now positioned that millions of used cars will soon be thrust onto the market as leases expire. This is a big problem for the makers of new cars.

This flood of used cars is expected to put massive pressure on the prices of used cars as well as reduce the need for many people to buy a new vehicle because of a secondary market that offered only limited choice and selection. The article below paints a ugly picture for the auto industry going forward and of good prices for those buying both new and used cars.

 http://brucewilds.blogspot.com/2015/11/auto-price-war-ahead-lower-prices.html

Tue, 12/01/2015 - 20:41 | 6863435 Falling Down
Falling Down's picture

...which will put a major squeeze on revenue and, eventually, profits.

Tue, 12/01/2015 - 20:09 | 6863290 truthalwayswinsout
truthalwayswinsout's picture

I have been wrong about this before but since car sales missed by a massive number maybe this time the Dow should go up 2000 points. 

I have always been underestimating the rise you get from an economy that is on the verge of collapse.

 

 

Tue, 12/01/2015 - 22:43 | 6863863 exartizo
exartizo's picture

Dear Mr. LeBeau:

 

you are an idiot.

Tue, 12/01/2015 - 22:53 | 6863917 Bunga Bunga
Bunga Bunga's picture

Because of weather, weddings and stuff.

Tue, 12/01/2015 - 23:18 | 6864018 JamaicaJim
JamaicaJim's picture

Phil LeBlow is as asinine as the rest of the mutts on cnbullshit....

Wed, 12/02/2015 - 14:37 | 6866587 newnormaleconomics
newnormaleconomics's picture

"Dis-ease" care is "driving" the US eCONomy to "stall speed" and to the edge of the roadside cliff.

Auntie Janet needs to take her foot off the liftoff pedal, put the cost of reserves in reverse, and steer hard toward NIRP. 

With Auntie's suburb driving skills, we can be sure to enjoy a smooth ride down the highway for years to come. 

I'm so glad I live in a militarist-imperialist, rentier-socialist corporate-state with the world's reserve currency. 

Give thanks, bitchez. 

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