CAR SALES STILL GRIM - AT 7:50 P.M. ET:  From The New York Times:

DETROIT — June sales figures released Wednesday showed another difficult month for automakers, yet provided a hint that demand for new vehicles in the United States might finally be on the upswing.

The Ford Motor Company said its sales were down 11 percent from June 2008, the smallest decline any of the six largest automakers has reported since last summer.

In contrast, sales fell 34 percent for General Motors, which has temporarily shut many of its factories to pare inventories, and 42 percent for Chrysler, which closed all of its United States plants while it operated in bankruptcy protection. The plant closings cut sharply into both companies’ sales to car rental companies and other business customers.

(May sales for G.M. were down 30 percent from a year ago while Chrysler’s were down 47 percent.)

COMMENT:  Ford's results were actually "strong" compared with the rest of the industry, including foreign makers.  Ford, of course, was the only U.S. auto company that did not take federal bailout money.  Hmm.  I wonder...   No, no, no, mustn't have capitalist thoughts in the age of Obama.

But the overall picture is still grim.  The CEO of a major American company told me a few days ago that the earnings just aren't there to sustain a recovery right now.  People don't want to spend their money, an observation confirmed by a dramatic increase in the savings rate.

I don't think the story's slant that there are hints of an upswing is supported by the facts presented.  Declines in sales may be lower this month than in earlier months, but they're still declines.  You don't win anything by continuing to lose.

With all the stimulus talk, and even talk of a Stimulus II, the sequel, we don't seem to be getting out of the doldrums.

July 1, 2009