Monday, October 03, 2005

G.M. and Ford Sales Tumble in September

The sales of SUV's decreased dramatically in September. Some automakers said that there were still strong car sales, but when gas prices increased after Hurricane Katrina SUV's took a hit in the U.S. market. All major companies saw their sales fall by at least 18 percent. General Motors Corp.'s SUV and truck sales fell 30 percent and to make up for the decrease in sales, they began letting the customers pay the employee price starting in June.
Ballew said that gas prices weren't the only reason for the decrease in SUV sales. He said "an aging lineup of SUV's and more car-based crossover options also are affecting SUV's." For the first nine months of the year GM's and For Motor Company's overall sales were flat. So Ford also let consumers start paying employee prices and it helped deplete the automaker's 2005 inventory.
Do you think the SUV sales will remain low due to the gas prices? Do you think if the gas prices begin to decrease that SUV sales will start to increase?

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