Why Detroit is Stuck in Second Gear

Just when you thought Detroit was making some progress with surprisingly good profits, July sales gave their comeback efforts a real knee capping. General Motor sales dropped 22%, Ford’s fell 19% and Chrysler was off 9%. Not surprisingly, truck sales took a thumping. The Chevy Silverado, GMC Sierra and Ford F-series pickups were all down at least 18% and Dodge Ram sales fell 10%. GM is resorting to 0% financing to clear out bloated inventories. Many of the big suvs took a thumping, too. In fairness, it was a rough month for everyone. Even Honda and mighty Toyota saw sales fall 7%.

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