The three biggest car makers in America (Ford. GM and Toyota called a bottom to the long decline in U.S. auto sales as reports and interviews showed its smallest monthly sales drop this year. Although June sales fell 28% from a year earlier to 860,000 cars and light trucks, that is the smallest decline in any month this year.

Furthermore, auto makers are reporting tighter inventories, which help to boost prices and profit margins. Ford ended June with a 60-day supply of vehicles on hand, down 38% from a year ago. Toyota had a 40-day supply. GM's supply was still higher than its competitors' inventories at 90 days, but it has dropped 27% from a year ago.

Marcus.tan.yi.wei 16:44, October 1, 2009 (PDT)

References

• "Car Makers See End to Sales Slide" Article from WSJ.com
• "Auto Sales Fall Back as Clunker Program End" Article from NYTimes.com

On Friday (8/7) when we heard the money was running out, we expected new funds to be added – $2 billion dollars later and one Senate vote away we’re about to see just that.

Ford (NYSE: F) – the only automaker that wasn’t bailed out by the government – is already seeing increased sales, and consumers are probably acknowledging that fact by purchasing vehicles from a company they see as stable.

That’s not to say that General Motors, Chrysler and numerous foreign auto companies aren’t enjoying the spoils as well.

While the program’s success can be see as pent up demand, a good economic policy in action, or a way to clean up the environment, it’s well liked and consumers are buying.

And what that really goes to show is that the American consumer – driver of economies around the world, and an economic force to be reckoned with – hasn’t died off or completely changed their spending habits.

GM and Chystler standing on the steps of the US Capitol with their coffee can begging each and every member of Congress and the president for a hand me out is no way to run a buisiness. Ford on the other hand has time and agin told the government, butt out we will handle this internally and keep your money! To me the choice is simple, Ford is the future GM is the past.