Auto Sales Rebound From Extremely Depressed Levels; Ford Kills Volvo; Think’s Electric Cars Roll Into New York

. deliveries averaged 16.8 million last decade through 2007. The 2008 total was 13.2 million, and 2009’s tally of 10.4 million was the fewest in 27 years, according to industry researcher Autodata Corp. of Woodcliff Lake, New Jersey. 2009 Totals were the worst in 27 years and that does not even factor in population growth. Thus, beating 2009 numbers is not much to crow about. 2008 was not a good year to say the least, and I doubt we get to that level.

After such depressed levels, we are seeing a return of some pent-up demand, but this is a cyclical bounce not a secular one.

Next year the comparisons will not be as easy to beat. Likewise they will not be as challenging as 2006-2007.

Ford Abandons Luxury Brands Outside US

Inquiring minds note Ford subtracts Volvo, makes Blue Oval main focus

Ford Motor Co’s (F.N) sale of its Volvo unit this year will leave the No. 2 U.S. automaker with no luxury brand outside North America.

But does Ford even need one?

At least for now, analysts say no. They may bemoan a lost opportunity to integrate the money-losing Swedish brand Volvo into Ford, but they see an even sharper focus on the “Blue Oval” Ford brand as key to sustaining the company’s turnaround.

Ford is farther along in an overhaul of its vehicle lineup than rivals General Motors Co GM.UL and Chrysler Group LLC, which went through government-supported bankruptcies in 2009. Ford posted a small profit last year and expects a profit for 2010.

The money-losing Volvo became a casualty of Ford’s unswerving focus on its mass-market Ford brand and its balance sheet for the turnaround under Chief Executive Alan Mulally.

“We aren’t really counting on doing anything other than focusing on the Blue Oval,” Ford global marketing chief Jim Farley said in an interview at the Geneva Motor Show in early March.

Will City Drivers Accept Think’s Electric Cars?

Inquiring minds might recall Think to manufacture electric cars in Indiana

The Think City is an all-electric car that can go about 60 miles per hour and has a driving range of about 100 miles. It runs from lithium ion batteries supplied by EnerDel, which is based in Indiana.

It’s expected that Think will market the two-seat City to American consumers as a car suitable for daily errands or commuting. In many cases, it could be second car with a household’s primary gas car able to take longer trips.

Think’s Electric Cars Roll Into New York

Please consider Think’s electric cars to roll into New York

Think will begin selling its all-electric City cars in the New York metropolitan area within the coming months, the company said Thursday.

Think’s City model is a highway-legal electric vehicle that runs solely on a lithium ion battery system and gives off zero emissions. The car, which has a top speed of 60 mph, can be charged from either a standard U.S. 110-volt household outlet, or a fast-charging 220-volt station that can be installed for home use. The small two-door car, clearly intended for city driving and parking, has a battery system with a range of about 112 miles per charge.

Via the fast-charging 220-volt station, a Think City car can charge from zero to 80 percent capacity in about 15 minutes. However, using a standard household outlet can take up to eight hours.

Think, which has applied for U.S. Department of Energy loans, has gotten a lot of attention from both the U.S. media and government in large part because the Norway-based company offered to make the Think City a somewhat American-made car and help create green U.S. jobs in the process. And the New York government support that Think mentions is not such a coincidence given the fact that Ener1, a New York-based company, is the parent of Indiana-based EnerDel, the exclusive supplier of the lithium ion battery system for the Think City car in the U.S.

It will be a good thing if these cars are accepted. However, bear in mind what it will likely do to profits if they are.

I would not consider one of those cars. But for someone who only drives in a big city, or as a second car they are appropriate.

Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List

Mike “Mish” Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.
Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.