More bad news for the U.S. auto industry.  The Wall Street Journal is reporting that domestic auto makers are poised to report larger than expected losses in August.  Despite the slowdown Reuters has stated that:

Industry-wide sales, however, will improve slightly from July, it said.

The research firm expects sales in the closing days of the month to improve, helped by General Motors Corp’s 100th anniversary sales event, which offers “employee pricing” on most vehicles and cash rebates on selected light trucks.

The J.D. Power report estimates sales of about 1.21 million vehicles for the month, or 13.4 million vehicles on a seasonally adjusted annual rate.

GM is the only company who is actually expected to make any gains over this time last year, which is entirely due to the “employee pricing” mentioned earlier.  What can U.S. auto manufacturers do to prevent further slow down?  Well the first plan is to ask you and I for $50 billion.  Congress has already attempted to fund U.S. automakers with $25 billion, but have yet been unable to come up with the funds.  I’m surprised this is slowing them down.  Not having the money has never stopped congress from spending in the past.  My idea is that they stop producing awful cars, de-unionize, and get to work!  I know unions seem like a great idea, but they hurt more people then they help.  If you want proof of the negative impact of unions, look at New York.  You can’t get your garbage taken out for less then an arm-and-a-leg, and good luck ever finding a job up there!  I think the government should keep it’s nose out of Detroit, and let them solve there problems by creating a better product.

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