Auto Sales Sink, With Big Three Hit Hardest

With all of the bad news and dire predictions surrounding the Detroit Three, its good to occasionally find some good news to comment on.

As the U.S. auto industry continues to deteriorate, automakers and suppliers aren't getting along as well as they used to.

Was there any good news in the past weeks automaker and auto retailers reports? Not much.

Wrong product mix and credit crunch causes US car manufacturers to head for a cash-crash. Japanese Big 3 heading for 50% market share ?

One would have to dig into the history books back to 1992 to find a worse month for car and truck sales in the U.S. than July.

With US auto sales down 13% in July and the forecast for the balance of the year equally distressing, news for the Tier 1 suppliers is even worse.  The news of existing designed European vehicles being brought to the US quickly , may well mean European companies presently manufacturing parts in Europe may come with them.  That means 2009 and 2010 offer no solution but only more problems

It's instructive to compare what's currently happening in the auto sector and the U.S. economy with what we saw in the wake of the 1990 oil shock.