Sales Figures Have Ford and GM Revamping Production

By: Paul Lim
College Press Staff Writer

Japanese car manufacturers find themselves on top of the U.S. sales charts again.  Honda and Nissan posted the highest gains, while perennial winner Toyota suffered a 1.6 percent loss, the eighth decline of the year according to Bloomberg.  Despite the decline, Toyota still maintains second place status, behind GM, in U.S. sales.

Honda’s sales went up 4.7 percent, while Nissan saw a 6.1 percent rise in their overall sales.

Rising gas prices have helped the Japanese car makers because of their strength with fuel-efficient vehicles.  Toyota’s big winner of the year was its hybrid model Prius.  Honda, the U.S.’ fifth largest seller, saw a rise in its subcompact Fit model.

Not only did fuel-efficient models prove to be successes for auto makers, but American brand staples like SUVs and pickup trucks are losing some ground to Japanese makers as well.  The Toyota Tundra, a pickup truck, saw a 43 percent rise in sales this year.  Nissan’s new small SUV, Rogue, was also a boon for the company’s sales figures.

American consumer confidence has also added to an all-around slowing in automobile sales.  Rising gas prices and declining home values have both discouraged consumers from buying.

Despite the sales problems occurring in the States, Ford and GM are already tinkering with their output figures for 2008.  Both companies will be decreasing production, with hopes of turning over a profit in the coming months.  While Ford did see a small 1.3 percent rise in figures, it is nowhere near making up for twelve straight months of losses.  GM suffered a 10.9 percent loss in November alone.

GM has decided to cut production by 11 percent, Ford is looking at seven percent.

GM is particularly excited about the Cadillac CTS and Chevrolet Malibu models.  Those models have been selling faster than expected and GM hopes their forecast comes true, saying that the housing market should pick up by the latter half of 2008.

“The New York Times” reports that Ford is hoping to sell off its European brands Jaguar and Land Rover as soon as possible.