Great Graphic: Detroit Three Automakers Gain Market Domestic Market Share

Auto sales have been an important driver of the US economic expansion.  They have been aided by the steadily improving labor market, the wealth effect generated by higher income and rising asset prices, and by the re-opening of the asset-backed securities market, which allows the auto lenders to package and sell off the loans.  

In some respects, it is the old originate and distribute model that was so ruinous for the housing sector.  It is different for the auto sector because the underling is a depreciating asset.  It seems particularly difficult to ignite a speculative bubble in new cars as they loose value simply driving them off the car lot.  

The is Great Graphic was posted on Bloomberg by Keith Naughton,who got the data from Autodata Corp.   It shows the rise of sales by GM, Ford and Chrysler this year and the gain in market share over other producers, including the Japanese brands, despite the depreciation of the yen.  It is important to recognize that the decline of the yen is less significant for Japanese brands because the parts and autos are increasingly made in the US.    

Naughton's piece celebrates the American worker (title of his piece is How US Workers Rebuilt an Industry), but this seems not to give sufficient credit to the rationalization of the industry (i.e., getting rid of some excess capacity) facilitated by the Chapter 11 protection.  Indeed, a full 40% of the North American auto workers are now in Mexico.   

Last week (Dec 9), the US government sold its remaining GM stock, which hit a record high earlier this month.  The following day, GM announced Mary Barra would be the next CEO, the first woman in the post,, signifying and reflecting the new era.