General Motors, Chrysler and Ford sales rise, perhaps

Could it possibly be true that U.S. automobile companies General Motors, Ford and Chrysler are reporting sales gains and, assumedly, profits instead of more red ink?
That is what U.S. automakers said Tuesday, even though many of the figures were adjusted to allow for corporate changes, like Ford's sale of its Volvo brand, and the bankruptcies of GM and Chrysler, according to the Reuters international news service. The announcements were not well-received by stock market investors, who sent Ford shares down nearly 2 percent, even though normally buoyant Toyota and Honda sales fell in July. But the sales increases were met with enthusiasm by some industry analysts, who had feared the U.S. economy was facing a double-dip recession. "In June, you had the feeling that maybe the industry wasn't out of the woods, and there was a lot of talk of a double dip. But June really seems to have been a blip," Al Castignetti, the head of Nissan sales in the U.S. market, told Reuters. Yeah, maybe. The big problem is that auto industry players talk on and on but what they say may not have anything to do with what's really going on. GM and Chrysler have been allowed to take billions of dollars worth of debt off their balance sheets -- without paying the money back, of course, and eventually sticking the taxpayer with the bill -- and to re-enter the world of real companies even though the U.S. taxpayer owns major amounts of their shares. How can anyone ever trust company reports again? Ford did not take bailout money or file for bankruptcy but have shown little resiliency going forward. Where are the new U.S. car models? Where are the new head-turning designs? Doesn't anyone in the industry care that nobody talks about American cars anymore unless they work for the Justice Department? "We are certainly optimistic about our prospects for the third quarter," Ford's U.S. sales chief, Ken Czubay, told Reuters. Yeah, right.

U.S. automakers say "domo arigato" to Toyota

Maybe all U.S. automakers should call their next new vehicles by the name "Domo Arigato," which means "thank you very much" in Japanese. With the Toyota Motor Corp. on the ropes following a series of safety recalls that has so far reached 8 million vehicles and sent its stock price plummeting, the U.S. Congress announced an investigation into the formerly formidable Japanese carmaker's response to the crisis. In addition to recalling millions of cars in the United States, Toyota has suspended most of its U.S. manufacturing and sales and expanded its recall to include vehicles made in China and in Europe, according to the Reuters international news service. U.S. Rep. Henry Waxman (D-Los Angeles), chairman of the House Energy and Commerce Committee, said Thursday he planned a hearing to see "how quickly and effectively" Toyota has responded to complaints about malfunctioning gas pedals. "Like many consumers, I am concerned about the seriousness and scope of Toyota's recent recall announcements," Waxman said. The recalls and repairs alone will cost hundreds of millions of dollars to Toyota, which last year supplanted General Motors Corp. as the world's largest automaker. Combined with the expected loss of customers and the damage to its reputation, the crisis is a still-growing disaster for Toyota. The car company told its dealers on Thursday that it would take months to repair all of the affected vehicles. Toyota said it would send recall notices to vehicle owners in lots of 10,000 to try to avoid overwhelming car repair shops, according to spokesman Mike Michels. "Obviously, the dealers couldn't handle everybody coming all at once," Michels said. "So that does have to take place over time. This volume of vehicles will obviously take a number of months. I don't have an estimate on that." Some U.S. dealers told Reuters they were making plans to hire additional staff and extend their hours to handle the repairs.