GM, Ford set for tough ’07 as sales plummet – S&P

03 January 2007 22:36  [Source: ICIS news]

TORONTO (ICIS news)--US auto giants General Motors (GM) and Ford - key users of many chemical products - are set for a tough 2007 following a further drop in their latest monthly sales volumes, analysts at Standard & Poor’s (S&P) said on Wednesday.

 

The worsening outlook for the US automakers implies adverse impacts for the many chemicals and plastics makers and suppliers exposed to those firms.

 

The typical North American light vehicle contains chemicals products and chemical processing worth an estimated $2,219, the American Chemistry Council (ACC) said in a recent report.

 

GM’s December sales volumes fell nearly 10% from a year ago while Ford suffered a worse-than-expected drop in sales volumes of 13%, S&P said in separate research notes to clients.

 

The analysts expect the automakers to suffer further volume declines and market share losses in 2007.

 

The 2007 outlook for DaimlerChrysler, which had a 1% rise in December volumes, based on preliminary data, remains challenging as well, S&P said.

 

“We expect the traditional Big Three [GM, Ford, Chrysler] to lose market share again in 2007,” it said.

By: Stefan Baumgarten
+1 713 525 2653

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