Rising Energy Costs Putting Limits on The New-Vehicle Market
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By Tim Higgins and Jewel Gopwani
Dec 05, 2007
Toyota
With American consumers’ confidence eroded by falling home values and rising energy costs, vehicle sales slumped in November and automakers braced for another tough year in 2008.
Chrysler LLC, Ford Motor Co. and Toyota Motor Corp. all posted virtually flat sales results for November compared with a year ago.
General Motors Corp. saw an 11% decline in sales for the month, in large part because it walked away from more fleet business. As a result, GM and Ford both slashed North American production plans for the first three months of 2008.
Ford, which had seen sales decline for the past 12 months, saw a slight increase of 0.6%. Toyota similarly saw a 0.3% rise.
“Growing concern over the housing slump has impacted consumer expectations about future economic conditions and we are feeling it in our automotive business, “ said Darryl Jackson, Chrysler vice president of U. S. sales. The Auburn Hills automaker, which does not disclose production plans, saw sales slip 2.1% last month.
