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Politics : Rat's Nest - Chronicles of Collapse -- Ignore unavailable to you. Want to Upgrade?

To: Wharf Rat who wrote (4514)	8/1/2006 7:36:36 PM
From: Ron	Read Replies (1) \| Respond to of 24246

Fueling Anxiety- WSJ August 1, 2006 5:07 p.m. Soaring energy prices continued to buffet the economy this summer, as they sucked up workers' pay raises and had car buyers thinking twice about climbing into fuel-swilling sport-utility vehicles. With prices at the pump soaring, the big U.S. auto makers were walloped by some very tough sales comparisons1 for July, after employee-discount sales incentives revved up sales last summer. Results for last month looked nothing short of gruesome: General Motors said sales fell more than 22%, while Chrysler sales sank 37% and Ford Motor posted a 34% decline. As has been the case for some time now, the three were hurt by falling sales of less fuel-efficient vehicles. Chrysler, the U.S. arm of DaimlerChrysler, noted inventories of its SUVs were stacking up and that it plans to cut production of them by 10% during the third quarter. Ford said sales of its F-Series pickup trucks dropped 46% and sales of its Explorer and Expedition model SUVs fell 57% and 51%, respectively. GM's light-truck sales, which include vans, pickups and SUVs, fell 31%, though the company said full-size pickups and SUVs had their best month of the year so far, aided by new models. The Big Three weren't the only ones to suffer. Nissan Motor, one of GM's prospective alliance partners, saw sales drop 19% on a 25% plunge in truck sales. On the other side of the coin, Toyota sales jumped 12% amid strong demand for its more-efficient passenger cars and hybrids. The same energy-price pressures that are sapping demand for gas-guzzling trucks and SUVs appear to be taking a broader toll on consumer spending, despite increased wages and salaries. The Commerce Department reported this morning that personal income rose 0.6% during June2, but the fatter paychecks workers carried home were quickly eaten up by high energy costs. tinyurl.com