Auto Sales Drop 10th Month In Row

We guess you can list this post under “Duh!”

GM CEO Says Credit Crunch Hurting September Sales

Reuters reports that Rick Wagoner, Chief Executive Officer of General Motors, went out on a limb and said that the current credit crunch is affecting vehicle sales. You think so?

August was the 10th straight month in which auto sales dropped. It is said that this is the longest decline since the recession of 2001. Wagoner, ever the optimist, expressed hope that the new and approved low interest loan for the domestic auto makers passed by Congress last week will help to open the credit market. He also had hopes for the $700 billion bailout...er...excuse use, "recovery" for Wall Street but that's been squashed for the moment.

All kidding -- an GM bashing aside -- no one expects any type of recovery in 2009. At best, reports say, auto sales will be flat. We might not see a recovery until the next decade.

GM had previously announced a plan to cut $10 billion in costs. Now it says that it will speed up the plan.

Our take? Unlike many of our peers, we think General Motors doing a credible job with limited resources and a failing economy. Sure, we have some issues (rebadging the gorgeous Buick Enclave to create the Chevrolet Traverse? GM, what were you thinking?), but we honestly felt good times were coming for the world's largest automaker. Thus we're rooting for you, GM! Besides, we want you to at least stick around for us to test-drive the Volt (hint, hint).