
| 2009:The New Vehicle Market Plunges To A 27-Year Low |
The Carnage Was Widespread
(But Maybe We've Hit Bottom And
Are Beginning A Slow Recovery Process)
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From 2000 through 2009, new vehicle sales averaged 16.4 million units per year. The recession which began in earnest in the last four months of 2008 continued to hammer new car sales throughout 2009. Sales for the year: 10.4 million, 21.2% below the 13.2 million sold in 2008 and the lowest industry total since 1982. (And remember, 2008 sales were down 18% from the 16.1 million units sold in 2007.)
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The recession has changed the automotive landscape significantly. Chrysler and GM filed for bankruptcy in May and June and, propped up by U.S. Treasury bailout money and a much smaller dealer count, have emerged as smaller entities which may have a shot at survival. GM has killed its Pontiac, Saturn and Saab brands and is selling money-losing Hummer. Ford has avoided bankruptcy, but is selling money-losing Volvo.
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| Just three brands registered sales increases last year: Subaru, Kia and Hyundai. Some brands performed better than the market, but down is down, and they were down for the second consecutive year, reflecting both the continuing lack of widely available credit and consumers’ lack of confidence in a significant economic recovery in the foreseeable future. |
| The outlook for 2010 is for modest improvement. J. D. Power has predicted a 10.6% gain to 11.5 million sales, 9.2 million of which will be retail deliveries (the balance being less profitable fleet sales). That estimate may be optimistic. The recovery still faces the headwinds of high unemployment and a likely continuing decline in the housing market. Several economists feel that the recession has changed the way consumers think about discretionary spending, and that many will decide to get new cars less frequently in the future. Yearly sales levels of 16 million have been the norm, but many industry analysts peg the “new” natural level of demand well below that into the future. |
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The balance of this page lists each nameplate’s 2009 sales performance. The 2009 data for individual models within each nameplate is covered in detail in the Fighting Chance information package, which provides current sales performance on the specific model(s) you're shopping for, as well as information on actual transaction prices reported by our customers, a current incentive report and step-by-step instructions on how to get the best deal available in your market.
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These are some of the insights we share with our customers in the Fighting Chance information package.
Ask yourself these two questions: JAMES BRAGG |
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The recession has changed the automotive landscape significantly. Chrysler and GM filed for bankruptcy in May and June and, propped up by U.S. Treasury bailout money and a much smaller dealer count, have emerged as smaller entities which may have a shot at survival. GM has killed its Pontiac, Saturn and Saab brands and is selling money-losing Hummer. Ford has avoided bankruptcy, but is selling money-losing Volvo.