blackSRi
4th July 2006, 03:08 PM
GM car sales plummet
From: Reuters correspondents in Detroit
http://finance.news.com.au/story/0,10166,19678165-31037,00.html
July 04, 2006
US sales of car giant General Motors fell 25.9 per cent in June, a sharp decline from last year's incentive-boosted results, the company said overnight.
The world's largest car maker sold 413,473 vehicles in the United States last month, compared with 558,092 vehicles a year earlier. GM recorded a 41 per cent jump last June after it began offering US consumers the same discounts it gives its employees.
This year, GM has vowed to stick to a strategy of offering more limited discounts, such as zero-per cent financing on many 2006 models through the July 4 weekend.
The car maker kept its third-quarter production forecast unchanged at 1.050 million units.
The weak numbers come amid intensifying pressure on GM's management. GM's board called an emergency meeting on Friday to discuss a letter from Tracinda Corp., the investment arm of billionaire investor Kirk Kerkorian, which urged the company to consider a three-way alliance with Nissan Motor and Renault.
Under the proposal, Nissan and Renault would buy a minority stake in the world's largest car maker.
If such a deal were to materialise, the combined company would be the largest force in the global automotive industry by a wide margin.
From: Reuters correspondents in Detroit
http://finance.news.com.au/story/0,10166,19678165-31037,00.html
July 04, 2006
US sales of car giant General Motors fell 25.9 per cent in June, a sharp decline from last year's incentive-boosted results, the company said overnight.
The world's largest car maker sold 413,473 vehicles in the United States last month, compared with 558,092 vehicles a year earlier. GM recorded a 41 per cent jump last June after it began offering US consumers the same discounts it gives its employees.
This year, GM has vowed to stick to a strategy of offering more limited discounts, such as zero-per cent financing on many 2006 models through the July 4 weekend.
The car maker kept its third-quarter production forecast unchanged at 1.050 million units.
The weak numbers come amid intensifying pressure on GM's management. GM's board called an emergency meeting on Friday to discuss a letter from Tracinda Corp., the investment arm of billionaire investor Kirk Kerkorian, which urged the company to consider a three-way alliance with Nissan Motor and Renault.
Under the proposal, Nissan and Renault would buy a minority stake in the world's largest car maker.
If such a deal were to materialise, the combined company would be the largest force in the global automotive industry by a wide margin.