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News Link • Economy - Economics USA

Bubble on Wheels

• LewRockwell.com by Douglas French

The headline on Automotive News just a few days ago screamed "GM's Q1 profits surge 34% on North American Strength."  It was the best quarter Government Motors has posted since emerging from bankruptcy in 2009. "It was the eighth consecutive quarter in which GM's results topped expectations on Wall Street," writes Nick Bunkley. Meanwhile, Ford posted a 35% decline in Q1 profits.

The website Jalopnik.com points out "For a couple years, the Morning Shift story at the beginning of every month was 'Another month of record sales!'"  But, as Kristen Lee writes, the party seems to be over. "New Car Sales Are In The Longest Losing Streak since 2009" her daily missive is entitled. Ford sales were down 7.2% in April while GM sales volume was down 5.8%.

These reported declines in sales run counter to a story I heard recently from a diesel mechanic, who is especially talented at undoing the Gordian Knots that stymied engines and damaged trailers can be.

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