US Auto Sales to Continue to Plummet in 2006-2007
Many automaker industry analysts are starting to give dire predictions for auto sales in 2006-2007 and say things could continue to get worse and slip even more. US automakers fear increased competition and increased market share losses from the Japanese imports and the future Chinese cars as well. Much is being blamed on the obvious; high fuel prices.
Yet even as we speak crude oil has dropped to under $66 per barrel from its recent highs of over $75 per barrel. But US automakers are not alone the Industry Wide Market in the US is also down around 4%. Of course we know the issues with General Motors and Ford as they try to move from high-gasoline consuming cars to automobiles more suited in the higher gasoline priced environment.
Unfortunately the big issue is that the more fuel economic cars are not as profitable as the SUVs, large mini-vans and such. And as August sales results come in it does appear that the market has totally bottomed out and was completely flat. Ford has cut production over 20% and General Motors has cut production by nearly 12% and things do not look any better for the forth quarter warn US automakers so stay tuned and we shall see?
"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs/
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