Okay so, we are told that the Auto Industry is saved and Osama bin Laden is dead so for this reason we should reelect the Obama Administration for four more years. Well, indeed, from a foreign policy perspective the achievement of hunting down the 9-11 kingpin is a worthy note, but that is hardly our only objective in our foreign policy, and although we also got Gaddafi, things are not so perfect as stated. Now then, with regards to the auto industry, yes, they are selling cars in the US again, and things are better, this is good for US autoworkers.
Further, there is a bit of pent up demand for cars now, since the average age of people's cars is at a record high of 11-years. So, just about everyone could use a new car I suppose. Some say that there will be smooth sailing ahead for auto sales thanks to two main points;
1.) Automakers are now making loans a lot easier to get, even selling vehicles to folks who really don't quite qualify, exactly what got us into trouble with the housing bubble, and; 2.) Hurricane Sandy or later downgraded to Super Storm Sandy for insurance purposes not due to wind speed - had destroyed a large number of cars from flooding. Those cars must now be replaced.
Now then, regarding item two, which is what I'd like to discuss here today; Reuters had an interesting piece on November 1, 2012 titled; "Storm Sandy knocks October auto sales below estimates," by Ben Klayman and Bernie Woodall which stated;
"Super Storm Sandy's fury caused U.S. auto sales to fall short of expectations in October, but industry executives still see a strong fourth quarter as the housing market improves."
Right it happened at end of month, but the sales will increase due to the number of ruined cars in subsequent future months, perhaps through the rest of 2012 for instance
Still, October this year was better than last year, see this article in Ward's Auto News; "GM's October Sales See Gains, Despite Hurricane's Impact" by James M. Amend on November 1, 2012. On that same day in the Wall Street Journal there was a similar estimation in an article titled; "Hurricanes Bring Rush of Car Sales" by Neal E. Boudette and Mathew Dolan.
Now then, this is not to say that everyone will be buying a US made automobile or from GM or Chrysler, they might buy a BMW, Mercedes, Volvo, Toyota, Honda, Nissan, or Ford. However, some of the cars bought will be from GM and Chrysler, which will be used to further justify the US auto-bailout by politicians hoping for reelection. Please consider all this and think on it.
Obama Says His Initiatives Would Help The Middle Class - Fact Check Please Do Lazy Americans Forgo Voting If The Weather Isn't Being Nice? Your Miracle Is On The Right Side
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