Reply #61: Fewer fleet sales to dent March results [View All]

[UpInArms]

http://www.marketwatch.com/News/Story/6K4CtF1hzs3fN9ChjlGw1wq?siteid=mktw&dist=morenews

SAN FRANCISCO (MarketWatch) -- Monthly U.S. auto sales figures due out next week likely will be the weakest yet in 2006, as American automakers reduce their reliance on corporate and rental sales, analysts say.

At the same time, high gasoline prices are making a big dent in sales of big trucks and SUVs.

General Motors' waning dominance of the U.S. market will again be a highlight in the March results, scheduled to be reported Monday. Analysts expect lower sales from GM, and Ford Motor, while foreign rivals are expected to report increases.
Bear Stearns expects GM (GM 20.97, -0.30, -1.4% ) sales to fall 8% from last year, according to a research note.

"While fleet sales have been cushioning the blow of weak retail sales (particularly for Ford and Chrysler in February), the Big Three have been promising to de-emphasize this side of the business and headline numbers could suffer as a result," Bear Stearns analysts wrote in a new report for clients.

New designs

The spotlight will be on GM's redesigned large SUVs like the Chevrolet Tahoe and GMC Yukon.

"We believe the success of the GMT900 platform is integral to the turnaround of GM's ailing North American automotive operations," Calyon Securities analysts wrote.

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