Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Pickup Sales Fall In Another Blow To Automakers

Recommended Posts

http://www.nytimes.com/2009/09/30/business...ml?ref=business

The closing of a big General Motors truck plant this week is another sign that America’s love affair with pickup trucks is fading fast.

Sales of pickups have declined sharply this year, more than the drop in overall vehicle sales, which are at their lowest in 25 years.

In 2004, for example, auto companies sold nearly 2.5 million pickups in the United States, many of which were used as everyday transportation, not just as work trucks or to haul trailers.

This year, the industry likely will sell only about a million trucks.

The downturn in pickup sales is putting new pressure on the finances of automakers, which for years earned significant profit from trucks.

In Pontiac, G.M. is shutting down the 3.4-million-square-foot truck plant that has been a fixture for 37 years in this industrial city about 20 miles north of Detroit.

Some of the production will be handled by a third shift at an assembly plant in Indiana. For the 1,100 workers who will lose their jobs in Pontiac, the closing represents the end of an era when G.M. could not build gas-guzzling pickups fast enough to meet consumer demand.

One worker, Garey Knop, said that rising gas prices last year and the weak economy combined to kill the pickup boom.

“Four-dollar gas put the nail into it,†said Mr. Knop, a pipefitter who has worked at the Pontiac plant the last 12 years. “I drive 110 miles a day, and I wouldn’t drive one of these trucks.â€

Both the Ford Motor Company and Chrysler have also closed pickup plants in recent years in an effort to bring production more in line with demand.

But the precipitous decline in pickup sales has been greater than many auto executives had expected.

When pickup sales were at their peak in 2004, the segment accounted for nearly 15 percent of all new vehicles sold. This year, pickup sales represent about 10 percent of the overall market.

Jesus the entire US business model is flawed, I'd hate having to drive 110 miles a day!!!

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   285 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.