National Debt Clock

Saturday, October 3, 2009

U.S. September Auto Sales Plunge; GM, Chrysler Hit Hard

U.S. auto sales tumbled by 23 percent in September as showrooms emptied after the government-funded boom from the "cash for clunkers" program, with General Motors Co and Chrysler hardest-hit.

Sales for General Motors Co and Chrysler -- the two U.S. automakers struggling to regain momentum after emerging from bankruptcy -- dropped by 45 percent and 42 percent, respectively.

Ford -- the only U.S. automaker to have avoided bankruptcy -- managed to hold its sales decline to 5 percent from a year earlier despite low inventories and reduced incentives for car shoppers.

When you artificially inflate demand, the market corrects in following periods to a point lower than the original demand. Economics 101 people.

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