The Auto Writer

As I write this, sales figures for January 2009 are not yet final. But, if the usual predictions made by analysts who follow these trends is any indication, sales will plunge compare to January 2008 and will be even lower than the awful month of December 2008.

We all know and expect that General Motors, Ford and Chrysler to report dismal sales for January, despite some of the best incentives offered ever. Indeed, Chrysler with its thousands off of 2008 and 2009 models along with zero percent financing, is almost giving their inventory away, in a bid to move product.

Trouble Brewing In Japan

Japanese automakers haven’t fared particularly well through this slump, with Toyota matching the declines of the Big Three in some months while Nissan was not too far behind. Even Honda, which has a much more fuel efficient fleet of passenger vehicles available, is feeling the heat and is likely to report that its own sales nosedived last month.

Speaking of Honda, the Japanese auto giant announced last week that profits fell by 63% last quarter and in response has trimmed production going forward. This is the fourth time in as many announcements that Honda has adjusted production downward, a move that will also shut down the company’s Swindon, UK plant for four months according to Sky News.

First Loss For Nissan In 14 Years

Carlos Ghosn, who is the CEO of Nissan as well as for Renault, expects that Nissan will experience its first loss under his leadership when the first quarter 2009 period ends on March 31st, predicting that the automaker will register a loss of $1.1 billion. Ghosn has been in charge of Nissan since 1999; the loss would be the first one for the automaker since 1995.

Oh, What An Awful Feeling!

Toyota, the world’s new number one automaker, hasn’t had time to bask in its new role of car making kingpin. Officially supplanting GM in 2008, ending that automaker’s 77 year reign at the top, the company has been warning everyone that it, too, is facing stiff losses.  Estimates of Toyota’s losses have been modified several times with the latest prediction being a drop of $4.46 billion when its fiscal year ends on March 31st.

Contributing to the woes of Japan’s Big Three, is that country’s own currency, the yen. The yen’s appreciation against the dollar and euro has driven up the cost of exports which means that Japanese companies have to hold prices down in order to remain competitive. Depressed prices take away from profits, acting as a significant force that is causing the Japanese economy to sink further.

Gloating, Not Allowed

I’m not gloating that the Japanese Big Three are having a difficult time of it. Rather, I’m simply pointing out that the problems facing the car industry go well beyond available product to something more fundamental: a lousy global economy. Even in Japan, the government is trying to pass their own stimulus package, but unlike in the United States they are finding it difficult to get the job done.

I’ll be reporting full January 2009 sales news on Tuesday.