Most Imports Continue to Gain Ground over Less Fortunate Domestics
The automotive industry dubbed last month "Black October" and many wonder, as this month comes to an end what its moniker
will be. With labour unrest, announcements of massive job cuts and low sales, November has been quite grim for most carmakers.
According to Reuters news agency, Ford Motor Co. and General Motors Corp. can expect to post more losses when they publish their November U.S. sales results this week. It is reported that the two automakers may experience a decline as large as 15 percent. Reuters also reports that DaimlerChrysler may also post a loss. According to Merrill Lynch analyst John Casesa, all three are suffering from an "inhospitable market for big trucks and sports utility vehicles."
To
counteract this phenomenon, domestic carmakers have been announcing various consumer sales incentives. However, some analysts believe it is too little, too late.
Meanwhile north of the border, The Conference Board of Canada says that Canada's auto and auto parts industry will post a loss for the second year in row and expects the industry revenue to drop by 7.7 percent.
"Production fell sharply in the first two quarters of 2005, and overall production in the Canadian industry will decline by 0.4 percent this year. With weak output and declining revenues, profits will barely make it into the black this year," said Louis Thériault, Director of Industrial Outlook.
The board blames low selling prices due to dealer incentives as part of the problem.
The automotive industry dubbed last month "Black October" and many wonder, as this month comes to an end what its moniker
 |
| Large SUVs have been hit particularly hard in recent months, with high fuel prices and changing tastes negatively affecting sales. (Photo: Trevor Hofmann, Canadian Auto Press) |
According to Reuters news agency, Ford Motor Co. and General Motors Corp. can expect to post more losses when they publish their November U.S. sales results this week. It is reported that the two automakers may experience a decline as large as 15 percent. Reuters also reports that DaimlerChrysler may also post a loss. According to Merrill Lynch analyst John Casesa, all three are suffering from an "inhospitable market for big trucks and sports utility vehicles."
To
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| GM hopes that sales of its all-new Chevy Tahoe, and its GMC Yukon and Cadillac Escalade siblings will improve over the outgoing model's recent slide. (Photo: General Motors of Canada) |
Meanwhile north of the border, The Conference Board of Canada says that Canada's auto and auto parts industry will post a loss for the second year in row and expects the industry revenue to drop by 7.7 percent.
"Production fell sharply in the first two quarters of 2005, and overall production in the Canadian industry will decline by 0.4 percent this year. With weak output and declining revenues, profits will barely make it into the black this year," said Louis Thériault, Director of Industrial Outlook.
The board blames low selling prices due to dealer incentives as part of the problem.