Detroit Automakers Prepare for Worst Sales Year in a Decade

[The Instructor]

Detroit Automakers Prepare for Worst Sales Year in a Decade

Thursday, March 20, 2008

NEW YORK — If the economy continues to worsen and U.S. auto sales nosedive, the top executives of General Motors Corp., Ford Motor Co. and Chrysler LLC say they are prepared to weather the downturn.

Speaking at separate events in New York on Wednesday, Ford CEO Alan Mulally, Chrysler Chairman and CEO Bob Nardelli said their restructuring plans have cut factory capacity and other costs so they can make it through a deeper slowdown.

"We also stress-tested our business plan ... to be able to go if everything gets much, much worse, to go down lower and still be able to keep implementing our plan," Mulally said at the Morgan Stanley Global Automotive Conference. "So we have the cash, we have the liquidity. We just need to absolutely stay on our plan now."

Nardelli said at the New York International Auto Show that Chrysler prepared for a downturn in U.S. sales this year with layoffs and cuts in manufacturing and inventory. Chrysler announced in November it plans to cut 12,000 jobs, including 2,000 salaried jobs, by the end of this year.

Chrysler Vice Chairman and President Tom LaSorda said Wednesday that the automaker is making good progress persuading its hourly workers to take buyouts despite the faltering economy.

"We've never missed a manpower reduction target," he said. GM and Ford are also offering buyouts to almost all of their U.S. hourly workers.

Nardelli said that in its planning, Chrysler did not assume the economy will recover in the second half of this year as many automakers have. He said he expects total U.S. sales of 15.5 million in 2008, which would be the lowest level in a decade.

On Tuesday, automotive information company J.D. Power and Associates lowered its 2008 forecast for U.S. new light vehicle sales from 15.7 million to 14.95 million, the lowest level since 1994.

Westlake Village, Calif.-based J.D. Power said lower consumer confidence and spending, financial market turmoil and the industry's slow performance in January and February prompted it to update the forecast it released late last year.

GM Vice Chairman Bob Lutz said the company continues to believe sales will rise in the second half of the year and will end up similar to last year's total of 16.1 million. But if sales continue to slide, GM will take steps to cut costs, he said.

"Obviously, like any corporation, we will react to changing conditions," Lutz said. "If the stock market rebounds upward, it should ease the credit situation somewhat and bring back some consumer confidence."

Nardelli also said Chrysler will make further cuts if the market demands it.

"If we have to adjust, I would submit to you we probably have to adjust less than some of the other manufacturers because we already adjusted significantly," he said, pointing to the job cuts as well as cuts in the vehicle lineup and sales of some non-automotive assets.

Mulally told industry analysts that Ford, too, is ready even if U.S. auto sales drop to the low-15 million vehicle range this year.

He told the group Ford planned for overall U.S. market sales of 15.7 million for the full year, but during the first two months it's running around 15.3 million.

That's at the low end of what Ford predicted for the first part of the year, but Mulally said the company's restructuring efforts are on or ahead of plan, preparing it for trouble.

"As hard as it is, as many people and facilities that it affected, it's really going well," he said of the plan.

Jim Press, vice chairman and president at Chrysler, said one bright spot in the slow economy is that it affects all automakers equally. Of all major automakers, only Honda Motor Co. saw a substantial sales increase in February.

"It rains on all sides of the street," Press said.

GM shares fell 38 cents, or 2 percent, to close at $19.03 Wednesday while Ford shares rose 16 cents, or 3 percent, to $5.45.

http://www.foxnews.com/story/0,2933,339649,00.html

[orange-n-brown 365]

I look for the big deal they made a few years back I think you'll also so a big push and good deals on the gas guzzlers soon

[Bassmaster]

A good friend of mine is a salesman at one of the bigger GM dealerships in the area and he is selling Malibus and Silverados as fast as he can get them. He said he is also moving a lot of SUVS. He also said it is unreal the amount of people that pay cash these days.

[The Instructor]

I have a friend who is laid off at a GM plant because of low sales.

[Bassmaster]

The American car companies have become fat through the years and have to cut back to compete with the foreign auto makers. They enjoyed a good run though. I saw on CNN the other day that GM's sales were up 2% from last year in the first quarter.

[orange-n-brown 365]

A good friend of mine is a salesman at one of the bigger GM dealerships in the area and he is selling Malibus and Silverados as fast as he can get them. He said he is also moving a lot of SUVS. He also said it is unreal the amount of people that pay cash these days.

my son-in-law also works for GM and things were slower for him last month small dealership but the new malibu came off the showroom by CASH personally I didn't like the new design it seemed sit lower.. and the new silverados are ugly we have the 07 classic I like it much better

[Bassmaster]

I like the older Silverados better too. The fuel mileage is what is making the 08's sell.

[The Instructor]

What is the fuel mileage on them?

[Bassmaster]

The few people that I know that actually own them are getting 20-22 highway. Chevy was advertising them at 22 but I have noticed they changed their commercials to say 20 highway now. Not bad for a full sized 4 x 4 with V-8 power.

[orange-n-brown 365]

The few people that I know that actually own them are getting 20-22 highway. Chevy was advertising them at 22 but I have noticed they changed their commercials to say 20 highway now. Not bad for a full sized 4 x 4 with V-8 power.

yes that is good my in-laws have an 06 that only gets like 14

[The Instructor]

The few people that I know that actually own them are getting 20-22 highway. Chevy was advertising them at 22 but I have noticed they changed their commercials to say 20 highway now. Not bad for a full sized 4 x 4 with V-8 power.

If you buy one that isn't a 4X4, will it get better gas mileage?

[Bassmaster]

Actually on that model there is only 1 mpg different in the mpg on the fueleconomy.gov website. In most cases the 2wd models do better than the 4 x 4's.

[The Instructor]

I had a Ford Ranger extended cab and the gas mileage on it was not good.

I thought a smaller truck would get better gas mileage but it didnt.

[orange-n-brown 365]

our s-10 got wonderful gas mileage of course it was standard shift and 2 wheel drive.I think when he was using it to go back in forth to work it got like 28 miles to the gallon..
too bad they decided to revamp it and do away with it along with the Astro. I got good gas mileage with it.

[Bassmaster]

I think the Ford Rangers with the 4 cylinder has the highest rated mpg in the small trucks with Toyota a close second. I think they are supposed to get close to 30 mpg.

http://www.fueleconomy.gov/feg/byclass.htm

[orange-n-brown 365]

From the chevrolet site
Engine EPA Estimated MPG City/Hwy.
1500 models with Vortec 4.3L V6
2WD 15/20
4x4 14/18
1500 models with Vortec 4.8L V8
2WD 14/19
4x4 14/18
1500 models with Vortec 5.3L V8
2WD 15/20
4x4 14/19
1500 models with Vortec MAX 6.0L V8
2WD 13/18
4x4 13/17
2500HD models with Vortec 6.0L V8 Not rated for fuel economy
2500HD models with Duramax Diesel 6.6L V8 Turbo Not rated for fuel economy
3500HD models with Vortec 6.0L V8 Not rated for fuel economy
3500HD models with Duramax Diesel 6.6L V8 Turbo Not rated for fuel economy

[kantuckyII]

At current gas prices...I can drive to Columbus and back for only $51.75 in my Super Cab Ford with the 5.4L Triton® SOHC 24-valve V8 in it. Needless to say, I don't drive there often in it! Heck, just to drive to Portsmouth and back it's 15 bucks! who wants to pay 15 dollars to get there!?!

[JHS4EVER]

I own a 2500HD and it is a oilmans dream come true. It will pass everything but a gas station. It is a hoss for towing a 35' fifthwheel, you don't even know it's behind you until you look at the fuel gauge. 11.5 MPG is the best it has ever done.

[Region 15]

Since last summer I've been looking for an 07 Silverado. Even now I do not see any 07's advertised in the paper, Wheeling, Pittsburgh or Steubenville. If I were to guess why, I'd say its the 100,000 power train warranty that was included on the 07 models. Even the Tundra's are not on the lots.

[Bassmaster]

It's hard to find a used Toyota on a lot and they don't stay long when they do get them. A friend of mine just traded in a 2002 Toyota 4 x4 4 door truck and the salesmen said they all had waiting lists for used Toyotas and they were a Honda dealer.