All indications are that cheap financing has hyped-up car sales as much as they can and a painful correction or worse awaits the car industry. From Eric Peters at theburningplatform.com:
Wouldn’t it be nice to know the canary’s going to sing before he actually does?
Very few saw the crash coming back in ’08 – which was the last time the car industry hit the linoleum and the cry resonated from Detroit to DC: I’ve fallen – and I can’t get up!
By the spring of ’09, GM had become Government Motors – and remains so, in spirit, to this day. The taxpayer bailout money has been paid back, but the company was fatally tainted by its roll-under-the-sheet with Uncle. It became a virtue-signaling company more than a car company.
Pontiac, Oldsmobile, Saturn and Hummer – dust in the wind. Along with about 20 percent of GM’s previous market share.
Chrysler eventually got bought by Fiat and shed Plymouth, then Dodge.
Ford didn’t take any taxpayer money but did get a “line of credit” – just in case.
They all bent knee.
Now comes the glut – and it could be the canary in the coal mine, just before he opens his beak.
