Welcome to the Business Journal Archives
Search for articles below, or continue to the all new BusinessJournalDaily.com now.
Search
Auto Sales Down, Vehicle Production to Be Reduced"
YOUNGSTOWN, Ohio -- General Motors Corp.'s announcement yesterday that fourth-quarter production will drop to 1.29 million vehicles -- down 6.8% from the fourth quarter of 2003 -- may be a harbinger of tomorrow's economic news, when the U.S. Labor Department reports how many jobs were created in August.General Motors said it expects to turn out 5.22 million vehicles this year -- down 4.4% from 2003's total of 5.46 million vehicles. It's not known how the decline in total production will affect General Motors Lordstown -- if at all. The manufacturing complex is gearing up for full-scale production of the Chevrolet Cobalt, set to begin Oct. 8, and GM is positioning the new small car to become one of its best-selling vehicles.Ford Motor Co. also announced yesterday that it will reduce fourth quarter production, building just 830,000 vehicles in North America, down 9.2% compared to total production in the fourth quarter of 2003.Ford reported total U.S. sales during the month of August fell 13% compared to sales in August 2003, even though sales of its F-Series truck line soared to a record-setting 84,996 vehicles, up 15% from one year ago.Year-to-date, Ford's total U.S. vehicle sales are down 5% compared to the first eight months of 2003.General Motors said its North American dealers sold 406,623 new cars and trucks in August, down 7% compared to year-ago sales. GM's car sales (170,634) were down 2% and truck sales (235,989) were down 10%."Comparisons to our record sales of last year are tough. Still, our sales last month fell somewhat short of our expectations," said John Smith, group vice president GM North America vehicle sales, service and marketing. "Some of our newer products -- like the Saturn Vue and Chevrolet Equinox small utilities, and the Cadillac CTS -- enjoyed record monthly sales. GM's broader family of sport utilities also continues to perform at a record-setting pace. Over the next few months, our portfolio will be strengthened by launch products such as the Pontiac G6, Buick LaCrosse and Chevrolet Cobalt, along with our new crossover sport vans the Buick Terraza, Saturn Relay, Chevrolet Uplander and Pontiac Montana SV6," Smith said.Analysts blamed high gasoline prices and the demise of 0% financing programs for the overall downturn in vehicle sales.Reported yesterday's edition of the Detroit Free Press: "[Analysts] have been concerned for some time that there is little pent-up demand for new vehicles. About three years of increasingly lucrative incentives have encouraged many consumers to buy vehicles sooner than they might otherwise, leaving fewer buyers shopping for a new vehicle. And while the economy is on the mend, employment hasn't been as strong as expected, causing some consumers to be cautious about big purchases."DaimlerChrysler reported total U.S. sales in August increased 1% and 2% year-to-date. Toyota said its U.S. sales fell 3% in August but are up 9% year-to-date, while Honda said domestic sales fell 7% in August but were even compared to the first eight months of last year.The U.S. Labor Department will release the August jobs numbers tomorrow morning. The consensus estimates of economists, according to the Bloomberg News Service, is a net gain of 150,000 new jobs during the month of August.The same economists forecast that some 225,000 jobs were created during the month of July, but the Labor Department report pegged the number at just 32,000.The government reported earlier this week that the productivity of U.S. workers increased by 2.5% during the second quarter. This slowing rate of productivity gains was interpreted by economists as indicating efficiency gains may have peaked, which typically preceeds decisions by companies to hire more workers.Visit General Motors Corp. at www.gm.comVisit Ford Motor Co. at www.ford.com"