By Brian “Newman” Rayl
Yesterday, September 1st, the auto industry released sales numbers for the month of August. According to Edmunds Auto Observer, the seasonally adjusted annualized rate (SAAR) came in at 11.5 million with 997,001 new vehicles sold for the month nationwide, down a staggering 21% year-over-year from August 2009. For Satellite Radio provider Sirius XM Radio (NASDAQ: SIRI), anything above 900,000 vehicles sold on a monthly basis will allow them to add subscribers or, at a minimum, break even.
Year-over-year comparisons for auto sales in August were ugly. Back in August 2009 the economy was in dire straits and the government decided to take action by initiating the “Cash For Clunkers” program, which allowed people to trade in older, less fuel-efficient vehicles for new fuel efficient vehicles. This stimulus program worked wonderfully. In July 2009 the SAAR was less than 11.3 million. Cash For Clunkers boosted the SAAR to just under 14.2 million for August 2009. Automakers are dismissing the year-over-year comparisons, saying that cash for clunkers was only a temporary boost to the numbers because of government incentives and did not reflect the reality of the auto market at the time. Once the Cash for Clunkers incentives expired, auto sales numbers quickly dropped. September 2009 followed with a 9.4 million SAAR and October 2009 finished with a SAAR of 10.4 million. Amid August’s muted auto sales, some sources are hinting that further government stimulus may be considered.
Taking the biggest hit of the car manufacturers was Toyota (NYSE: TM), falling a staggering 34% from a year ago comparisons while still battling image problems following recalls due to brake issues. Toyota was closely followed by Honda, which dropped 33% and Nissan which slid 27% from year ago sales. The American manufacturers fared a little bit better. Ford (NYSE: F) took an 11% hit, while GM (which recently announced its IPO), took a 25% hit year-over-year. Out of the “Big 6″ car manufacturers the lone standout in these numbers is Chrysler, who was not able to fully benefit from Cash for Clunkers due to their bankruptcy proceedings and factory shutdowns. Chrysler showed an increase in car sales year-over-year of 7%. Read More
The National Football League (NFL) regular season kicks off on Thursday, September 9th in a rematch of the 2009 NFC Championship game between the New Orleans Saints and the Minnesota Vikings (a game which has changed the overtime rules of the NFL after a field goal won the game in overtime for the New Orleans Saints, who would go on to win the Superbowl). Sirius XM (NASDAQ:SIRI) is of course covering this game — and every other game of the season — live on satellite radio. To view the Sirius NFL Schedule 
