Just came across an article from the BBC. I am speechless. So let me understand this right: Gas prices go down and people are actually going out to buy S.U.V's? How can that be. Have they already forgotten this summers gas prices? Are they such optimists? I want a pair of the rose colored glasses they must be wearing. Where do I get me some? Here is the article:
CHEAPER FUEL HELPS GM SALES SURGE
BBC November 1, 2006
GM's trucks and SUVs are having a resurgence.
General Motors (GM) has seen its US vehicle sales soar in October thanks to a fall in fuel prices - though some of its rivals fared less well.
The company's sales grew by 17.3% as it reported strong demand for its trucks and SUVs as filling the tank became less expensive.
Toyota increased its sales by 9.2% in the month and Ford saw an 8% increase but DaimlerChrysler slipped 1.6%.
The figures compare to October 2005, a poor month in the US for all carmakers.
'Gaining share'
GM had been accused of being over-reliant upon thirsty sports utility vehicles (SUVs), at a time when fuel prices have soared but there are signs its so-called "fuel-guzzlers" were gaining share.
Petrol prices have fallen from a peak of $3-a-gallon in May to about $2.20.
GM analyst Paul Ballew said that this helped the whole industry, but especially truck sales.
"Some of the pressure which was really dampening demand has been lessened," he said.
"We are not seeing the mass migration out of utilities into cars or crossovers that we saw in the spring."
GM, the world's largest carmaker, sold 301,317 vehicles, against Ford's 214,806 and Toyota's 189,011.
When it came to cars only, Ford said it had sold 22% more than a year ago - although it has relied on discounts on its 2006 models combined with steep production cuts to drive down its supplies. It is also cutting production in 2007.
Turnaround
DaimlerChrysler's results would have been worse if a 3.9% drop in sale sat its US arm had not been offset by growth at its Mercedes Benz business. Honda sales rose 3.7% as light truck sales cancelled out a fall in demand for cars.
Last week GM said it had reduced its losses by more than 90% as its turnaround plan has begun to kick in.
The car giant lost $115m (£61.3m) in the three months to September 2006, and said that without a string of one-off charges it would have been in profit.
In the same period a year ago, GM posted a loss of $1.7bn.
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