With gas prices bordering on $4 per gallon, analysts were quite pessimistic with their forecast for the month of May expecting a 10% U.S. auto sales drop compared to last year.
The rising oil prices have pushed car buyers from trucks and SUVs, opting for smaller and more economical vehicles instead. Hence, analysts also expect that America'a big three, GM, Ford Motor Co. and Chrysler LLC will suffer the largest declines considering that numerous pickups and SUVs have been a staple for these car manufacturers. Monthly reports will be disclosed by car manufacturers on Tuesday, June 3.
The rising oil prices have pushed car buyers from trucks and SUVs, opting for smaller and more economical vehicles instead. Hence, analysts also expect that America'a big three, GM, Ford Motor Co. and Chrysler LLC will suffer the largest declines considering that numerous pickups and SUVs have been a staple for these car manufacturers. Monthly reports will be disclosed by car manufacturers on Tuesday, June 3.
Analysts noted that aside from the ruckus caused by rising fuel prices, GM faced vehicle shortage problems due to the UAW strike. As a result, it is expected that GM sales would fall by about 22%-25% compared to last year's result.
Ford sales are expected to drop by around 22% while Chrysler sales are expected to drop by around 20%.
Some car manufacturers however will receive a little bit of good news.
Despite trying times in the auto industry, Honda Motor Co. is expected to have a sales gain from a year ago.
And although Toyota Motor Corp. has a projected drop in sales, the Japanese giant is still on target to increase its market share in the U.S. to a new level.
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