In February Ford's sales fell 48% from February 2008. GM, Toyota, and Nissan also reported a sharp decline in sales last month. Globally, Carmakers have been hit hard by the economic downturn. People are reluctant to make expensive purchases in the current economic state. Concern over jobs, home value, and other assets have made people less inclined in making large purchases. If these levels of car sales persist it is predicted that every major automaker may need government aid.
After discussing Ford and his empire just a few days ago it is shocking to see how much it has changed due to the state of the economy. Ford used to be able to not only create the cars, but create the market for them as well. Advertising used to be able to convince some car owners to replace their perfectly fine old models with the newer, flashier models. However, as Americans have begun to be more frugal, they are less tempted to have the newest model available. Less emphasis is placed on social standing today then in the 1920's, so the pressure to have the most current model is not as high. However, when the economy improves, I would not be surprised if the pressure to stay current rises.
