October gives Big Three big headache
General Motors, Ford Motor Co., and DaimlerChrysler saw domestic sales plummet in October due in large to soaring fuel prices and the after-effects of summer price incentives.
General Motors noted a year-on-year 23 percent decline to 257,623 vehicles. Ford reported October sales fell 26 percent to 199,847. DaimlerChrysler sales, though not as bad, still dipped three percent to 183,163 cars and trucks.
Each company blamed different factors. Ford said that its sales declined because so many people took advantage of discount pricing while GM pointed to high gas prices which eroded its bread-and-butter SUV and truck sales.
Japanese automakers, however, are having no problems and saw sales rise in October.
Toyota Motor Corp. reported a 5.7 percent increase and Honda Motor Co. saw a 4.2 percent rise. Nissan
North America was the only dim spot, reporting a 13.3 percent decrease.
Many industry analysts feel the drop will be good for US automakers in the long run as Detroit leaves behind its dependency on enticing customers with pricing incentives. Others are concerned, however, they will attempt to overcorrect the situation by instituting price cuts which could further exacerbate the problem.