As General Motors emerges from bankruptcy the worst may be over for carmakers

CALL them green fumes. Sales of cars and trucks in America showed their smallest year-on-year decline last month since September, when Lehman Brothers crashed—although the drop was still a massive 31%. That would correspond to annual sales of 9.7m. But according to General Motors, the first three weeks of the month were a good deal better, running at a rate of 10.3m. Sales subsequently slowed as some customers held back in anticipation of the federal “cash-for-clunkers” scheme, which began this month.

Such incentives appear to be working well. Although the American scrappage incentives apply from July 1st, buyers may hold back until the details of the plan are finalised later in the month. That could turn out to be more good news for GM. Judge Robert Gerber has allowed the “new” GM to acquire the good assets of “old” GM. And on Friday July 10th, following the example set by Chrysler’s fast-track exit, GM too emerged from Chapter 11 after a mere 40 days. Having lost nearly two percentage points of market share during the bankruptcy proceedings, the new GM is planning a marketing blitz next month to announce its resurrection. …