[jikelly]

I heard a few reports about Ford showing a profit and auto sales increasing in October. I think it might be just a hair too soon for us to start jumping up and down, but the auto industry might be safe.

Last month's sales, if projected for an entire year, rose to 10.5 million after slumping to 9.2 million in September, the month after the government's Cash for Clunkers rebates ran out. Analysts said the figures are good for a normally weak October, but they're still far short of the 17 million annual rates from the late 1990s and early 2000s.

"Clearly we're seeing improvement in the economy and in the industry. It isn't huge, but it's a good sign given that Cash for Clunkers is over," said Mike DiGiovanni, General Motor Co.'s executive director of global market and industry analysis

The biggest winner among major automakers was South Korea's Hyundai Motor Co., which saw sales skyrocket 49 percent to 31,005 vehicles, boosted by the Elantra small sedan. Japan's Nissan Motor Co. came next with a 5.6 percent gain, followed by GM at 4.7 percent, aided by strong pickup truck sales, the performance of new models and the highest incentives in the industry. It was GM's first year-over-year monthly sales increase in 21 months.

...Ford Motor Co.'s sales rose 3 percent and it gained U.S. market share for the 12th time in 13 months as its critically acclaimed vehicles continue to grab buyers from rivals. Ford has benefited from consumer goodwill because it didn't take government bailout money or go into bankruptcy protection, as General Motors and Chrysler did.

GM posts first sales gain in nearly two years - Autos- msnbc.com

[rbohm]

right now people are seeing that the worst is over, but that the economy is still soft. however we may be in the eye of the hurricane as there are problems coming down the pipeline that the average person doesnt yet see. things like a second round of major problems in the housing market, the possible collapse of the commercial real estate market, higher taxes coming along at the state level, and at the federal level in 2011. couple all that with higher inflation, higher interest rates, and the economy could be right back where it was last year at this time, with unemployment going even higher than it is now.

dont get me wrong i still think that the US economy is basically sound, but as i said last year, the wrong moves by the government and things will get worse before they get better.

and if you are looking at the dow jones industrial average as a benchmark on how the economy is doing, remember that it has been fudged to make things look better than it really is. very poor performing stocks have been replaced by ones that are doing better right now. even the S&P 500 has had some tinkering done to bolster its numbers.

[strtrcr50]

According to all my friends in the dealerships, sales are a LONG way from normal. They are struggling to make every deal they can, profit or not, and the numbers are still way down. However, most of the people I know are in import stores.

[jikelly]

Do you think the crisis is turning more American's away from the foreign makes?

[rbohm]

Originally Posted by jikelly

Do you think the crisis is turning more American's away from the foreign makes?

that remains to be seen, but ford is gaining market share over everyone, including toyota and honda.

[strtrcr50]

Don't know. The imports fell more than the domestics since the imports were selling more. They have a higher hill to climb to get back to normal.