GM market share is expected to top 30 percent in November - Reuters
U.S. light vehicle sales seen up for November
By Michael Ellis
DETROIT, Nov 27 (Reuters) - Lower interest rates
and aggressive pricing helped lift sales of light
vehicles in the United States by about five to
six percent in November, analysts said on Friday.
Dealers are luring Americans into showrooms with
high incentives and rebates, and the recent strong
gains on Wall Street have eased consumers'
fears of a recession, analysts said.
''You have both the ability and the willingness to
buy cars out there,''said David Healy, an analyst
with Burnham Investment Research.
Automakers are scheduled to begin reporting their
November U.S. sales nextweek, with DaimlerChrysler AG
(NYSE:DCX - news), Toyota Motor Co. and Honda Motor Co. Ltd.
starting things off on Tuesday. Ford Motor Co. (NYSE:F -
news) and General Motors Corp. (NYSE:GM - news) are
expected to report sales on Thursday.
Healy said he expected industrywide U.S. sales of cars
and light trucks totaling 1.18 million for November, up
from 1.12 million in November last year.
Manufacturers have held down prices on new models and GM,
recovering from a nearly two-month strike this summer, has
led the charge in offering incentives and rebates to lure
customers back.
GM has almost completely recovered from the June and July
strike, and its market share is expected to top 30 percent
in November, up from 29.6 percent in October, analysts said.
''I don't think their inventories are fully back to normal
yet,'' Healy said. ''So I think over the next couple of months,
they could have a little bit further recovery in market share
as their pickups get out in the field in volume.''
GM is still ramping up production of its new Chevrolet
Silverado and GMC Sierra pickup trucks, which promise
to be their highest-selling vehicles.
Ford's market share could drop slightly from last year,
but stronger sales of more profitable pickup trucks and
sport utility vehicles could make up for the drop in
overall volume.
''Ford is crying all the way to the bank,'' Healy said.
They're showing a little erosion in market share, but
gains in profitability."
DaimlerChrysler, which completed its merger earlier this
month, will report its U.S. sales as a combined company
for the first time. Chrysler sales are expected to grow
only slightly, but the German automakers, including
Daimler and BMW AG have had strong U.S. sales this year. |
