US auto makers face difficult fourth quarter - GM

02 October 2007 20:06  [Source: ICIS news]

HOUSTON (ICIS news)--The US auto industry will face a tough fourth quarter due to high energy prices and dents in consumer buying power, the world's largest auto producer said on Tuesday.

GM's executive director of global market and industry analysis, Paul Ballew, said in a conference call with analysts that car makers could see choppy fourth quarter earnings due to these factors, even though GM's sales in September exceeded expectations.

Although GM has not seen any signs that credit tightening is further affecting car sales, he said the slowdown in the US housing market will continue to hurt the buying power of US consumers.

Automobiles are an important end market for chemicals, as each vehicle contains an average of 335 lb (152 kg) of polymers, according to the American Chemistry Council (ACC).

US automaker GM sold 337,640 vehicles in September, up 4% from the same time last year, the company said on Tuesday.

GM's North American division built 323,000 vehicles in September, down 64,000, or 16%, from the same time last year, the company said.

During the third quarter of 2007, GM North America built 1.020m vehicles, down 30,000, or 3%, from the same time last year, the company said.

GM attributed the decline to a brief strike caused by the union. Since the strike has ended, the North American division still expects to build 1m vehicles in the fourth quarter, down from 1.107m that it built during the same time last year.

The company is the world's largest auto maker in terms of production.

 

By: Al Greenwood
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