GM Says Negative Publicity Contributed To Nov Sales Decline
GM Sales Chief Mark LaNeve said speculation that one or more domestic auto maker could go bankrupt, along with high-profile auto-industry bailout hearings on Capitol Hill, kept already weary customers out of auto showrooms.
"Every ill-informed pundit is weighing in on our business," LaNeve said during a conference call to discuss November sales. "We are being adversely impacted by all the bankruptcy talk and negative coverage. It is a negative headwind to us."
He cited data from CNW Marketing Research that said up to one-third of domestic vehicle owners didn't buy a GM, Ford Motor Co. (F) or Chrysler LLC (C.XX) vehicle because they fear the companies may go bankrupt.
Auto sales have sunk to multi-decade lows as jittery, cash-strapped consumers stay out of showrooms. Matters have gone from bad to worse this year for the U.S. auto industry. The national housing crisis depleted homeowner equity and slammed new-home construction, which drives sales of pickup trucks. Then $4-per-gallon gasoline drove down sales of pickups and sport-utility vehicles this spring and summer. The latest blow has been a lack of available credit, which has made it difficult for car buyers to secure affordable auto loans.
All major auto makers were hit with steep declines, including a 31% decline at Ford and a 47% drop at Chrysler. Foreign-based auto makers didn't fair much better. Toyota Motor Corp. (TM) posted a 34% sales decline and Honda Motor Co.'s sales (HMC) fell 32%.
When asked if the decline in sales at non-domestic auto makers contradicted the thinking that bankruptcy talk exacerbated GM's decline, LaNeve said the speculation weighed heavily. "It's very easy for other dealerships to sell against us, they can just say, 'You don't want to buy that GM product'."
GM shares closed Tuesday up 26 cents, or 5.7%, to $4.85, Ford gained 15 cents, or 5.9%, to $2.70, Toyota added $3.39, or 5.8%, to $61.95, while Honda was up 65 cents, or 3.3%, to $20.59.
-By Sharon Terlep, Dow Jones Newswires; 248-204-5532; sharon.terlep@dowjones.com.
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(END) Dow Jones Newswires
December 02, 2008 16:56 ET (21:56 GMT)
Publié le 02 Décembre 2008 Copyright © 2008 Dowjones
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