What is happening here! Why is the stock crashing today?
I was wondering what would cause this stock to cave so quickly after the gains last week? Is there some financials coming out? I cannot see the insider trades, so I don't know if this is just profit taking or a signal to get out. The Auto industry cannot possibly use less palladium than they do now (Plating and electronics)!
I wouldn't count on that. If GM and Chrysler disappear, then there will be drastically fewer new cars. The existing car makers will probably keep production low, and just raise the price of their models. None of this helps palladium, in my humble opinion.
If GM fails, then buyers simply buy other vehicle brands - the have a good 40 car brands to pick from. It would be better for all if GM and probably Chrysler as well to shut down completely. Palladium will be purchased for such makes as Toyota, Nissan and VW which should replace the Big 3 cars. Additionally, Chinese- produced vehicles will probably surpass US produced vehicles during 2009, 2010, or 2011. China vehicle sales & prodcution are growing extremely quickly. 8.99 million units were produced in 2007 in China vs. 10.78 million units producted in US. China production increased producted by 52.6% from 2006 to 2007.
Interest blurb here -
Chinese to Manufacture 10M Vehicles this Year Global change, Transportation March 26th, 2008
The tremendous growth in the transportation sector in China may make the number of vehicles produced in this country eclipse the number of vehicles produced in the United States this year. The United States has been at or near the top of the automobile manufacturing sector worldwide since the invention of the automobile.
In 2007, Japan produced 11,596,000 vehicles, with 10,781,000 from the United States and 8,882,000 vehicles from China. China is predicted to produce more than 10 million vehicles this year, and the United States is predicted to produce less than 10 million.
Lots less can be used if the auto industry doesn't get going. Unemployed atuo workers do not buy new vehicles. Wors auto suppliers, catalyst makers will be going bankrupt as they wil not be paid by the auto makers.