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Home >> Business
UPDATED: 11:24, June 04, 2006
U.S. auto sales driven down by fuel prices
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Fuel prices brought down overall auto sales in the U.S. to 1.49 million cars and trucks last month, a decline of 0.7 percent from a year earlier, according to a report by Autodata Corp.

The effects of fuel worries could be seen in sizable percentage declines in sales of many larger vehicles, analysts noted. Among them were Ford's Expedition, down 45 percent, and GM's GMC Envoy, down 40 percent, said the report received here on Friday.

Sales fell 12.4 percent for May from a year earlier, said GM. Ford Motor Co. and DaimlerChrysler's Chrysler Group posted declines of 2.2 percent and 10.9 percent, respectively.

GM announced Thursday that it would invest 332 million dollars in its factory in Warren, Mich., to boost production of fuel- saving six-speed automatic transmissions.

Persistent high fuel prices have scared off many customers, said David Healy, a Burnham Securities analyst based in Sierra Vista, Ariz.

Although high gas prices curb interest in SUVs and pickups, many big SUVs such as the Chevy Tahoe and luxury models such as the Cadillac Escalade continued to sell well, along with large trucks that can be used for farming and construction, auto dealers said.

Pickups, sport utility vehicles and minivans have outsold passenger cars for almost six years. In May, the gap narrowed, with trucks accounting for 50.9 percent of the market, down from 54.1 percent a year earlier.

Source: Xinhua


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