Crazy Nut Job

The results aren’t that good. Ford beat expectations with only 11% fewer sales. What I find interesting is that the auto manufacturers are ramping up production. This will likely be enough to cause GDP to go positive in the third quarter. However, what if auto demand stays low? Then we’ll be stuck with a lot of extra inventory, which will drag on GDP fourth quarter. Does it actually make sense to ramp up production? There’s still quite a bit of inventory hanging around. If anything, auto demand should pick up for the existing inventory when they have to resort to huge price cuts to unload them before the new models hit the remaining dealers.