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Year Ends on Sour Note for Autos

Automakers end worst year since 1998; 2008 doesn't look much brighter.
Industry:
Automotive
Summary:
The Company is engaged in the development, production and marketing of cars, trucks & parts. It develops, manufactures & …
Primary executive:
G. Richard Wagoner, Jr.,
Industry:
Automotive
Summary:
The company is a producer of cars and trucks combined. Its business is divided into two sectors: Automotive and Financial Services.
Primary executive:
Alan Mulally,
Industry:
Automotive
Summary:
The Company conducts business in the automotive industry. It designs, manufactures, assembles and sales passenger cars, minivans …
Primary executive:
Katsuaki Watanabe,
G. Richard Wagoner, Jr.
Industry:
Automotive
Biography:
G. Richard Wagoner, Jr., Chairman and Chief Executive Officer, General Motors Corporation, since 2003; held offices of President …

Do people actually buy cars as Christmas gifts like the ads show? The data suggests they don't.

The December U.S. auto sales figures are trickling in, and so far the results are just as dismal as everyone expected. Rising energy costs and declining home prices are squeezing consumer pocketbooks, and the auto industry is clearly feeling the pinch.

Analysts expect total U.S. car and truck sales for 2007 to be about 16.1 million, which is their lowest level since 1998.

The tough year was perhaps bittersweet for Toyota, which edged out Ford to become the second-biggest U.S. automaker behind General Motors. The Japanese automaker saw sales decline by 1.7 percent during December, but it still managed to eke out a 3 percent gain in U.S. sales for the year. It sold 48,226 more cars than Ford.

Sales at Ford fell 9 percent during the month, and they ended the year down 12 percent, to 2.6 million vehicles. Economists expected Ford to post a drop in sales of 7.8 percent in December.

Crossover sport-utility models continue to be the bright spot for the troubled automaker, which is in talks to sell its Jaguar and Land Rover units to Tata Motors. U.S. sales of Jaguars fell 24 percent in 2007, while Land Rover's sales edged up 4 percent.

The company expects the economic environment "to remain challenging in 2008," according to a statement.

The message is essentially the same from General Motors. The Detroit automaker saw sales fall 5.2 percent in December to end the year down 6 percent.

G.M. chief Rick Wagoner said he expects overall auto sales to be flat during 2008. "There are some obvious reasons for concern, but on balance I suspect '08 will be similar to '07 in total, although likely weaker in the first half and stronger in the second," Wagoner said, according to Reuters.

Nissan said sales fell by 2.4 percent during the month. Honda managed to sell 14 more cars during December than it did the prior year.

Analysts expect Chrysler to also announce a decline in December sales later today.  


 
 

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