Ford looking at another dull year in 2006
Last year was disastrous for the American automobile manufacturers. The three big giants Ford, General Motors, and DaimlerChrysler all reported falling sales with the Japanese companies like Toyota, Honda, and Nissan doing extremely well. Worse is expected in the coming days as both Ford and GM are destined to reveal their plans on massive job cuts and closure of loss making units.
Ford has more bad news for their investors as they have said that they do not expect the sales to improve much in the current year. In fact, sales are expected to fall down even further due to higher interest rates and volatile gasoline prices in the market. This fact was revealed by a senior Ford Motor executive this week.
Mark Fields, president of Ford’s operations in the Americas was talking to the reporters at the Los Angeles Auto Show when he said that the company expects the U.S. economy to grow by a meager 3 percent or more in 2006. Even the oil industry has suggested that fuel prices are expected to remain high this year and this would be another dampening factor for the automobile sector in USA.
Fields added: “Somewhat slower growth, higher interest rates, and volatile gas prices all add up to auto sales that probably won’t outshine last year’s sales rate.â€