Ratings agency S&P warn today that a major recession might force the 3 top US carmakers to file for bankruptcy. Clearly they share JD Power’s fears, noted yesterday, about the potential for an ‘outright collapse’ in global auto markets. S&P says operating cash-flow needs at the firms are ‘substantial’, and adds that they face a […]
Chemicals and the Economy
US car sales plummet, house prices fall again
September was another difficult month for the cornerstones of US chemical demand, autos and housing: • GM cut prices dramatically via its ‘Employee discount for everyone’ programme. But even so, sales fell 16% versus last year (blue column) • Toyota (red column), fell 30% • Ford (green column) fell 34% • Chrysler (purple column) fell […]
Auto sales fall around the world
August was a bad month for US auto sales. GM sales were down 20% versus 2007, Toyota down 9%, Ford down 26% and Chrysler fell 35%. This set the blog wondering about relative performance , and the chart shows the result. 2007 wasn’t a great year, with only Toyota (the red column) showing a sales […]
1/3rd of US auto suppliers risk bankruptcy
US and European auto sales fell again last month. GM reported total US sales down 27% versus 2007, due to a ‘challenging US economic environment’ Toyota were down 19%, with Lexus sales badly hit, down 25% Ford were down 13%, and said they ‘expected H2 to be more challenging than H1, as economic and credit […]
US auto sales collapse in June
‘Collapse’ is not a word that should be used lightly in business. But there is no other way to describe June’s US auto sales figures:
$216.9bn and still rising
After a while, large numbers lose their power to shock. So Bloomberg and the FT have performed a service this week by reminding us of the scale of losses in the financial sector. They calculate that so far, US and European banks have had to raise $216.9bn of new capital. And, of course, whilst this […]
US auto sales fall again in Q1
Car sales are of major importance to the chemical industry. The ACC calculates each new car uses $2441 worth of chemistry. The declines reported below for March and Q1 do not, therefore, make pretty reading. March Q1 GM -13% -11% Toyota -3% -4% Ford -14% -9% Chrysler -19% -16% Even more discouraging is that none […]
Dow, Basell, BASF, SABIC owed $5m in Plastech bankruptcy
Chemical companies tend to trade on ‘open book’ terms with long-established customers. They are also supportive when those customers are facing problems in their end-markets. In a recession, these admirable qualities can become expensive. ICIS news reports tonight that the bankruptcy of Plastech Engineered Products in the US has led to debts of nearly $5m […]
Ford warns on auto sales
US autos are one of the major uses for chemicals. The ACC recently calculated that each auto contains $2441 worth of chemistry, with a wide range of companies supplying products such as antifreeze, sealants, coatings and plastics. In 2006, chemical sales to the industry were worth $32.6bn. A downturn in auto sales is therefore not […]
US autos/housing worsen
1 in every 196 US households was in receipt of a foreclosure filing at the end of September, according to Bloomberg. This is a scary number for anyone who owns a house. And Quarter 4 is likely to be worse. Latest figures from the Realtors Association show September’s existing home sales down 19.1% from a […]
Jump to page: