October may continue a trend of weak car and light truck sales in the US. And the head winds may be getting stronger. Problems in the housing industry and fear of sharply rising fuel prices may keep buyers off of showroom floors.
According to Reuters, "auto sales are expected to have dipped slightly in October, as stepped-up incentive spending by automakers could not totally offset the drag from continued turmoil in the housing market."
Ford (NYSE: F) is expected to have the worst month among large car companies with sales expected to fall 13%. How long the company can continue to post the worst numbers in the industry month in and month out is the subject of much speculation. What is clear is that the company will begin running out of time and cash if the problem stretches well into next year.
Sales at GM (NYSE: GM) are expected to fall a more modest 3%. Toyota's (NYSE: TM) sales are expected to be flat.
The one pattern change that has emerged in the last few months is that Toyota is no longer picking up huge chunks of market share. GM's sales are running flat to slightly up. With all of the cost cuts at the US car company and a new UAW contract, the auto landscape in the US may actually be changing.
Douglas A. McIntyre is an editor at 247wallst.com
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