Knowing that a record number of Americans can't pay their mortgages and have begun defaulting on their credit cards, it's not surprising new car sales are slumping. But it's shocking to see how fast and how far new car sales have fallen. New car sales are now running at an annualized rate of 12.5 million vehicles, the lowest level seen in decades and a huge drop from last year's 16.3 million vehicles.
What does this mean to the car companies and the market?
This is the ripple effect of the oil and sub-prime problems. Same as the 1970's.
Therefore if history is any indicator of the future the market will trade between 8000 and 14,000 for the next 4 years.