Employee Discounts Leave Detroit Automakers with Little Left to Sell - Great Planning

Washington DC August 19, 2005; The AIADA newsletter reported that the huge success of Employee Pricing discounts has left Detroit automakers with another problem to solve -- with all new car and truck supplies running out, what else is left to sell.

According to The Detroit News, sales of import autos have risen sharply in the first half of August, while Detroit automakers face shrinking market share as inventories erode. Investment firm Deutsche Bank indicates that overall U.S. light-vehicle sales in August are above year-earlier levels, with sales running at an annualized rate of 17.6 million vehicles for the month -- a robust level, but below July’s torrid pace of 20.6 million units. "Big Three auto sales appear to be moderating," it said in a research note.

"A common theme among dealers we spoke with is that low inventories are constraining sales." Deutsche Bank predicted sales at Detroit automakers would deteriorate in the second half of the month as supplies grew tighter.”