World Biz Tool: Save | Print | E-mail   
US woes hit truck, car sales
Last Updated(Beijing Time):2007-12-03 14:27
General Motors Corp and Ford Motor Co probably posted a drop in United States car and truck sales in November.

Rising gasoline prices and falling home values have dragged consumer confidence to its lowest level in two years.

"There's an overall downshift in the economy, with the subprime housing mess and continued high oil prices," said George Magliano, an analyst with Global Insight Inc in New York. "Consumers are just getting battered right now, causing a pullback in spending, and that's hurting auto sales."

Sales for GM may have dropped 3.6 percent, after three straight monthly gains, while Ford's slid 3.4 percent, and Chrysler LLC's tumbled 10.5 percent, according to the average estimates of seven analysts in a Bloomberg News survey. Auto makers release November results on Monday.

A decline for the industry would be the eighth monthly drop this year and the first since GM and Ford lost money in the third quarter. Record-high November gasoline prices, defaults on mortgages to borrowers with poor credit histories, and the steepest drop in home prices in two decades have left US consumers as pessimistic as they've been since Hurricane Katrina hit the Gulf Coast 27 months ago.

Nissan Motor Co may pace advances for the biggest Japanese auto makers, which rely less on fuel-thirsty trucks than their US rivals.

Nissan, Honda Motor Co and Toyota Motor Corp each may grab more market share at the expense of US companies, Jesse Toprak, an analyst with in Santa Monica, California, said in a Tuesday note. Nissan may report a 9.5-percent sales gain, Honda 8.1 percent and Toyota 1.2 percent, he said.

The industry's annualized sales rate for November probably fell to 15.9 million cars and light trucks, the third lowest of the year, according to the average estimate of eight analysts and 12 economists.

The year-earlier rate was 16.1 million, the lowest of 2006. The industry, which has sold an average of 16.9 million vehicles each year this decade, is bracing for sales to drop to their lowest total since 1998.

Gasoline at more than US$3 a gallon for most of the month suppressed demand for new autos, Ford's chief sales analyst, George Pipas, said in an interview. The average price rose to US$3.07 through Thursday, from US$2.80 in October, the highest level since July, according to American Automobile Association data.
Source:Shanghai Daily 
Tool: Save | Print | E-mail  

Photo Gallery--China Economic Net
Photo Gallery
About | About the Economic Daily | Contact us
Copyright 2003-2020 China Economic Net. All right reserved