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Current DateTime: 03:22:57 10 Jul 2009
LinksList Documentid: 30830730
Expiration DateTime: 7/10/2009 3:24:30 AM
    • GM Emerges from Bankruptcy  09 Jul 2009

        GM has a second chance but can it thrive with China breathing down its back? Insight with CNBC's Phil LeBeau.

    • Goldman Sachs Gets an Upgrade  09 Jul 2009

        John Carey, Executive Vice President and Portfolio Manager at Pioneer Investments, thinks Goldman Sachs is an example of a financial institution that is good shape -- there are very few banks left in this position. He discusses financials with CNBC's Amanda Drury and Martin Soong.

    • Driving Out Of Bankruptcy  09 Jul 2009

        A federal judge cleared the way for GM to sell most of its assets to a new company, with CNBC's Phil LeBeau.

    • Hyundai's Roadmap to Success  09 Jul 2009

        Even though the global auto sector continues to be battered by the economic crisis, South Korea's largest carmaker Hyundai Motor seems to be turning a corner. The firm's president & CEO Steve S. Yang shares his roadmap to success, in his first-ever television interview.

    • Can Diesel Dethrone Hybrids?  08 Jul 2009

        A new study found diesel cars may save owners more money than hybrids. CNBC's Phil LeBeau has the details.

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Current DateTime: 03:22:58 10 Jul 2009
LinksList Documentid: 30830722
Behind The Wheel
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Jan.06
10:07 AM ET
Tuesday, 6 Jan 2009
Auto Industry Has Hit The Bottom? I Say Yes

Toyota Dealership
NNECAPA
Toyota Dealership

As I was watching the dismal auto sales numbers come in on Monday, I was waiting for somebody to drop me an e-mail and sarcastically remind me that it was just a few months ago when I said, "Things can't get much worse in the auto industry." That e-mail never arrived, but the bad news from the automakers was non stop.

By the time Chrysler reported a 53 %decline in December sales, I thought it was the fitting way to cap a day of horrible news. The numbers last month don't lie:

• Chrysler Down 53%

• Toyota Down 37%

• Honda Down 35%

• Ford Down 32%

• GM Down 31%

The fourth quarter produced the weakest auto sales since 1981, and in general, few expect a rebound anytime soon. In fact, Ford said on its conference call that the first quarter would be bad. You get the point.

But how much worse will it get? Realistically, where is the bottom? Much like the stock market, you can't predict the bottom of a sales market. There are, however, some encouraging signs.

GM saw a noticeable increase in showroom traffic the last week of December. GMAC and other lenders are starting to loosen up credit restrictions on potential buyers. And the offers/incentives have rarely been this sweet.

So, at the risk of opening myself for more ridicule, I will once again predict that we have seen the bottom for the auto industry. We won't snap back in sales. We may even see a shock or two over the next six months. Still, I believe that this December is the point we will look back on as the time when the auto industry hit its low point.

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