Brake on Sales? Not for Rolls Royce!

The Associated Press reported that there is at least one sector of the automaker industry that is bucking the downward trend - and that is in the high-end car market.

Here are some interesting figures and facts from the AP article:



Rolls Royce Phantom

It would seem that the last thing anyone would need is a US$400,000 Rolls Royce Phantom, but many actually do!

Sales of the luxury marques are either flat or down modestly. Ferrari's US sales, for instance, dipped just 3 percent for the first 10 months of the year, while Rolls Royce cruised ahead with a 32 percent growth.

Said a top aito analyst from a consulting firm: You are dealing with the ultra rich, who, even if they take a hit, a car purchase for them is a very fractional piece of their net worth.

A few bright sparks also remain for the cheap and cheerful range as well.

There has been a steady rise in global sales for low-cost cars, despite the current economic crisis.

For example, Renault's low-cost, boxy-looking Logan has become one of the company's most profitable vehicles even as profits from its other models slow to a weak 3 percent.

Renault Logan

Carmakers Grinding to a Halt

Cars in Low Gear: Cut in production and staff across the globe as sales plummet

List of the troubled carmakers.

General Motors (US)
Worldwide sales fell 11.4 percent between July and September.
Says it needs up to US$12 billion in bailouts, and could collapse in weeks.
Shutting down Thai plant for two months, affecting 2000 workers.

Peugeot Citroen (France)
Sales dropped 16 percent last month.
Axing 3550 workers across France, from workforce of 114000 last year.
Cuts comes after 3000 departures in February and 10000 last year,
from France and Europe.

Honda (Japan)
Cutting production by 40000 vehicles in Japan, 21000 in Britain
and 18000 units in North America.
Will temporarily close a factory in Britain next February and March,
and at the Saitama plant near Tokyo.

Toyota (Japan)
Sales fell 21 percent last month compared to a year ago.
Cutting half of 6000 temporary jobs at domestic plants,
and planning production cuts at Thailand plant.
Forecasts 68 percent drop in full-year net income.

Ford (US)
Seeking US$7 billion in bailouts.
Posted net losses of US$8.7 billion in the second quarter this year.

Mercedes-Benz (Germany)
Parent company Daimler reported 66 percent drop
in operating profits last month.
Cutting car production by over 80000 units.
Production cuts and extended time off for workers.