Everyone has heard about the housing crisis in the U.S. that is being caused by the mortgage industry meltdown. Well now Vice Chairman of GM Bob Lutz, says that it is effecting the auto industry as well.
“The market as a whole has been a little weakish. That has come as a result of the housing market problems and the mortgage industry meltdown,” Lutz told Reuters. “A lot of people are finding themselves in a position of reduced affordability and that has had an impact, not just on us, but across the industry.”
Lutz does not know how GM’s sales have performed in April, but he expects the whole market to be hit by this housing crisis.
Troy Clarke, GM’s head of North American Operations said that GM’s sales will be weaker in the second quarter of this year due to a weakened economy, higher interest rates and the mortgage crisis.
A decline in the housing market also hurts sales of large pickup trucks that are used by construction workers.
Is this another excuse by Lutz to explain the weak GM sales? It seems like Lutz likes to place the blame on others for the reasons why GM sales are slipping or the fact that they can’t get high gas mileage from their vehicles. (See other stories below)
What will Lutz say if Toyota and Honda’s sales actually increase this quarter?
Full Story: Automotive News
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