Jolted with the increasing oil prices, U.S. auto sales are expected to have plunged in May. U.S. vehicle sales are expected to come down to 15.9 million to 16 million vehicles in the month, compare to the year earlier 16.2 million units.
US automakers, have already lost their ground for the Asian rival Toyota, are in the middle of reconstructing their business. Stiff oil price rises has smashed the automakers hard as their once darling of customers, SUV and their best selling trucks demand came down and clienteles opted for the fuel efficient vehicles.
Jaded Ford Motor Co., which is recuperating from the losses, sales in the US market in the May expected to increase. This would be a first upsurge in the last six months. But the company’s overall sales are expected to come down as it cut sales to daily rental companies.
Apart from the excruciating oil prices, ford is under the reconstruction facelift, in which company is reducing its workforce and shutting down its low performed manufacturing units.
Other big auto player, General Motors Corp., which lost its cap of world’s largest automaker to Japanese rival Toyota Motor Corp. in the first quarter, first time in the last 74 year, sales also, expected trim by 3 percent.
Chrysler Group sales seems to do well in the sluggish US market as analysts expect growth of 2 percent to 4 percent, boosted by heavy incentives on its Dodge Ram pickup trucks and its minivans.
Market downwards even did not seem to spare Toyota as most analysts were expect that company would post a 3 to 7 percent increase in the sales, but auto industry tracking service Edmunds expects Toyota’s sales to have slipped 0.4 percent, adjusted for an extra selling day this May.
Galloping gas prices is a major factor for the decreasing auto demands. The Detroit-based automakers — GM, Ford and Chrysler, which combined lost more than $15 billion in 2006, have been steadily losing sales and market share to Asian rivals in the U.S. market are now entering in the small segment car. All three are cutting back on low-margin fleet sales — typically sold to rental companies and government agencies — in an attempt to shore up the resale value of their vehicles.
Image: nwicars
Via: moneycentral
