Ford Again Raises Outlook for Total ’88 Vehicle Sales
Ford Motor Co. has increased its U.S. car and truck sales prediction for 1988 to 15.6 million from 15.3 million, the second increase since the October stock market crisis, a top executive said Thursday.
Robert Rewey, Ford’s vice president for North American sales, said: “The market is back. Consumer confidence is back. Interests rates are flat, the trade deficit is down, unemployment is down.
“We’re just looking at what we think the underlying growth rate is.”
Rewey said Ford increased its 1988 forecast of industry sales of imported and domestic vehicles to 10.4 million cars and 5.2 million trucks for the industry. Before the stock market plunge, Ford had forecast industry sales of 10 million cars and 5 million trucks.
Sales Didn’t Fall as Expected
The forecast was increased early this year to 10.2 million cars and 5.1 million trucks, when sales did not plunge as expected after the stock market crisis.
Total industry sales for 1987 were slightly more than 15 million, including heavy trucks. Sales of cars and light trucks alone were 14.9 million. In the first quarter of 1988, industry sales were more than 3.8 million cars and light trucks--a performance that surprised auto makers and analysts.
By the end of May, U.S. car and light-truck sales had reached nearly 6.6 million.
Ford’s new forecast includes heavy trucks, which make up nearly 6% of all truck sales.
Ford’s main competitor, industry leader General Motors, is more vague about its forecast, but it also recently increased it--to “slightly more than 15 million . . . from slightly less than 15 million,” GM spokesman Harold Jackson said.
The most recent forecast of Chrysler Corp., the nation’s third-largest auto maker, is 15.1 million--10.1 million cars and 5 million trucks--said Steve Torok, Chrysler’s director of sales operations planning.
Chrysler Had Pessimistic View
Chrysler’s first post-stock market crisis prediction was the most pessimistic in the industry at 9.5 million cars and 4.7 million trucks. It was boosted in the first quarter to 9.8 million cars and 4.8 million trucks.
Chrysler will review its forecast in the beginning of July and increase if sales remain strong.
