September Auto Sales Expected to be Well Below August
Automakers are bracing for somewhat of a hangover in domestic sales of
cars and trucks this month after August's blistering pace, the best in
nearly two years.
Two Wall Street analysts said Thursday they expect a seasonally adjusted
annual sales rate of 16.5 million units in September, down dramatically
from August's 19 million pace. Major automakers report September sales
Oct. 1. Alan Helfman, general manager of a Chrysler-Jeep business in
Houston, said his sales are likely to be off 20 percent from last month,
though he's hopeful an end-of-the-month promotion on some 2004 vehicles
will provide a last-minute lift. For example, Helfman said he's offering
a 2004 Jeep Grand Cherokee with no interest for three years -- plus a
$3,000 cash rebate. Typically consumers opt for the financing deal or
the cash. "You knew there'd be a drop this month after the numbers in
August, and September's typically not a barn-burner anyway," Helfman
said. "Kids are back in school, and people have their heads elsewhere."
As well, many dealers are selling out of the 2003 models that have been
heavily discounted in recent months. August volume also was helped by
Labor Day weekend and the introduction of some 2004 models.
(Source: Associated Press)

Different Routes to the ‘Green’ Car
The world's major automakers are tempering their enthusiasm for
hydrogen-powered fuel cells to solve the environmental and geopolitical
problems caused by dependence on gasoline. Instead, as a three-day
"green car" conference sponsored by French tire maker Michelin Group
wrapped up Thursday, representatives of the major automakers said
redesigned diesel engines, hybrid gas-electric cars and several
alternative fuels would be the short-term answer to reducing emissions
and cutting gasoline use. "No one has a silver bullet that will cure
everything," said David Hermance, executive engineer for environmental
engineering at the Toyota Motor Co. research and development unit in
Torrance. Automakers have been trying numerous possibilities:
Cleaner-burning gasoline engines; hybrids, which Toyota and Honda Motor
Co. already have on the market; various diesels designed by European
automakers; and battery-powered vehicles.
(Source: LA Times)


Chrysler to Cut 400 Jobs in Design
DaimlerChrysler AG's Chrysler Group plans to start cutting 400 product
designer jobs represented by the United Auto Workers in January --
angering some workers who say the downsizing move wasn't disclosed in
the automaker's new tentative labor contract with the union. The
planned cuts were outlined in a side letter in the tentative
UAW-Chrysler labor agreement, which was reached Sept. 14 and could be
ratified as early as today. The design jobs at the Chrysler Technology
Center in Auburn Hills and at the automaker's Jeep and truck engineering
complex in Detroit are among 5,200 salaried UAW positions at Chrysler.
With U.S. sales and revenues down, Chrysler is struggling to restore
profits after losing $1.1 billion in the second quarter of this year.
Chrysler CEO Dieter Zetsche said earlier this month the company had no
immediate plans for more major restructuring moves, but didn't rule out
future job cuts. Since launching a major turnaround in February 2001,
Chrysler has eliminated 30,000 jobs and closed seven plants. Chrysler
told UAW bargainers that it needs fewer designers because of wider use
of common parts across its product lineup and the introduction of new
technology. Chrysler, like other automakers, is reusing parts and using
advanced computer-aided design to cut the amount of time and money
needed to develop vehicles.
(Source: Detroit News)