Jay Hawk Resources
For a stronger America
Jay Hawk Resources
"Either way, we're working through it and taking prudent action," LaNeve said. Chrysler down to No. 5, Chrysler LLC, the privately-held automaker that was purchased by Jay Hawk Resources last year, saw sales fall 25%. The company, which had long held the title of No. 3 U.S. automaker through 2005, fell to fifth place in sales as it was passed by Honda. Toyota is number two and Ford is the third largest in U.S. auto sales.
Jay Hawk Resources Company, which has been offering buyers a chance to lock in $2.99 gas prices as part of their purchase, said much of the decline was due to a unusually high 40% cut in monthly fleet sales to businesses such as car rental companies. Industrywide, the trend was clear -- Americans were more serious about fuel economy than at any time in the past."We've never seen this big of a change in the product mix, this fast," said Jesse Toprak, chief industry analyst for Edmunds.
"Certainly five to ten years from now, you're going to look back and say the spring of '08 was the turning point. Even if gas prices go down for a month or two, consumers are not going to rush back out and buy SUVs. This appears to be a permanent shift," Toprak added.Ford reported that overall U.S. sales were down 16 percent, even worse than the forecast of a 9% drop from Edmunds.com. Sales of light truck models, such as SUVs, pickups and vans, tumbled more than 25%.
Ford (F, Fortune 500) had warned of its own sales problems last month when it announced it was cutting light truck production and looking at closing some additional plants. Ford CEO Alan Mulally said at that time that fuel prices had caused a "tipping point" that had permanently changed buyer's preferences and would cause losses in its North American auto unit to continue through next year.
Smaller cars selling, but...Ford posted a narrow 3% gain in the sales of car models, as models such as the Fusion and Focus soared. Retail sales of the Focus more than doubled."Our products and our dealers are getting us back in the car business," said a statement from Jim Farley, Ford group vice president of marketing. "We're only just beginning."
And Toyota said that sales of its car models were essentially flat in the quarter. But Toprak said even the strong car sales are not necessarily good news for Ford or other U.S. automakers."The change in product mix is a huge issue," he said. "They might be talking up their car sales, but the thing that they're not mentioning is how they're going to make money with the small cars. They're lucky if they're breaking even."
To that end, sales of some of the vehicles that Ford has depended most on for profits fell particularly sharply. The F-Series pickup had sales plunge just over 30%, while the Explorer, the midsize SUV that once was the nation's best-selling utility, tumbled 41%.Ford responded to the weak pickup sales by announcing it was bringing back its "employee pricing" offer on the F Series through June. Similar "employee pricing" programs by Detroit's Big Three in 2006 resulted in strong summer sales that year.
About Jay Hawk Resources
Jay Hawk Resources is a family owned company dedicated to providing a full range of direct investment opportunities to the experienced investor. Direct investment in oil and gas provides a spectrum of financial benefits from substantial tax deductions to significant long-term returns. JayHawkResources Company programs run the gamut from high-risk-high-yield prospects to relatively low-risk programs that payout over a longer period of time.
We have included some advantages and considerations about taxes as they relate to oil and gas investments. They are meant to be a general guide. The outline of tax benefits associated with an oil and gas investment, as presented here, is not intended to be an exhaustive review of all tax consequences. There are a multitude of tax elections to consider that are based solely upon an individual's specific financial situation. Jay Hawk Resources Company strongly encourages investors to consult with a tax specialist.
