GM, Ford cut production after U.S. sales fall

General Motors and Ford are planning to cut production of automobiles more than expected because of weaker sales in November. Some analysts predict this will hurt profits. However, even GM's "Lock and Roll" incentive, which would have given consumers the option to lock in current financing rates on both a new 2005 model and a second bought years later, didn't meet General Motor's expectations. I'm wondering what factors caused sales in the United States to slip. Apparently higher incentives are no longer enough to boost sales significantly. As a consumer, I know that price influences me more than anything. Perhaps the price of Ford and GM's vehicles are too steep at the moment for some consumers who would normally invest in an automobile manufacured by the companies. Chrysler, Toyota, Nissan, and Honda have all reported stronger November sales, so perhaps consumers are finding better deals on vehicles there. If supply is cut, according to typical supply and demand analysis, price will increase. However, since demand is weaker than expected, maybe this will result in a move towards equilibrium. I guess we'll just have to wait and see.