Thursday, February 01, 2007
Ford And GM Expect Lower January Sales
Ford and G.M. Expect January Sales Drops
By NICK BUNKLEY and
MICHELINE MAYNARD, The New York Times
Sales by Detroit’s two largest automakers are expected to be significantly lower in January as they pulled back from deliveries to rental-car agencies to focus on more profitable transactions at dealerships.
Executives from the Ford Motor Company said Wednesday that its sales in the United States dropped about 20 percent in January.
Ford also said sales to rental-car agencies each month this year should drop by double-digit percentages, which would drag down overall sales.
Ford expects to sell slightly more than 700,000 vehicles to rental car companies this year, down from 900,000 two years ago.
General Motors also projected decreased sales, although executives have not indicated how much; it planned to sell 35,000 fewer vehicles to rental agencies in January and 120,000 fewer this year.
Edmunds.com, a Web site that gives consumers car-buying advice, estimated last week that G.M.’s sales would be down 9.4 percent in January, when adjusted for an additional selling day this year.
The reduction in rental sales comes after both automakers have already given up considerable market share. Analysts say the strategy is needed to overcome billions of dollars in losses and earn a profit again...read more:
here2/01/2007 07:37:00 AM
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