Ford’s sales (F) dropped a horrifying 34% in September, to levels not seen since the 1980s. More important for the rest of the economy, the credit crunch is now filtering through to consumers:
“Consumers and businesses are in a very fragile place,” said Jim Farley, Ford group vice president, Marketing and Communications. “An already weak economy compounded by very tight credit conditions has created an atmosphere of caution.”
Specifically, according to CNBC, Ford dealers are having a tough time finding money to make loans at prices that would-be Ford buyers can afford.
This isn’t shocking news for Ford: After making the same mistake they made in the 1970s–betting the farm on gas guzzlers–Ford, GM, and Chrysler continue to stay on life support. It’s bad news for the rest of the economy, however.