Fuel prices are a pain for most automakers
Posted By RichC on June 3, 2008
U.S auto companies have been suffering and even the ‘rising sun’ of Toyota has had sales pains. Most of the pain has been felt by U.S. automakers as consumers don’t want gasoline thirsty pickups and sport utility vehicles in the face of $4.00/gallon pump prices. General Motors, Ford Motor and Chrysler LLC have depended on the pickup and SUV buyer and are ill prepared to weather higher priced fuels and inflationary prices over the short term. Long term, they have been reluctant to replace there larger vehicles with efficient models although GM announced the possibility of shedding their Hummer brand.
But while the three U.S. automakers and Toyota are suffering, some other Asian automakers were able to gain a bit. Honda Motor, Nissan and Kia have attracted American new car buyers and two of them have posted record sales. Honda did so well as to see their Civic model beat the Ford F Series pickup truck to become the nation’s bestselling vehicle. Ford F-series pickup sales suffers enough to also be passed by Toyota’s Camry mid-sized model.
GM didn’t only suffer from the higher fuel prices, but also by a series of strikes which affected the production of its better selling models such as the Malibu and crossover vehicles. According to GM’s management, they estimated that labor issues were to blame for 6 – 7% of their reported sales shortfall. (15,000 to 18,000 vehicles) Their chief business forecaster, Mike DiGiovaani, did say that he sees the problems behind them and that maintaining a 20% market of total U.S. sales this past month was “remarkable given the combination of labor disruptions, oil prices and a weak economy.”
CNN reported that “Chrysler LLC, the privately-held automaker that was purchased by Cerberus Capital Management last year, saw sales fall 25%. The company, which had long held the title of No. 3 U.S. automaker through 2005, fell to fifth place in sales as it was passed by Honda. Toyota is number two and Ford is the third largest in U.S. auto sales. Chrysler, which has been offering buyers a chance to lock in $2.99 gas prices as part of their purchase, said much of the decline was due to a unusually high 40% cut in monthly fleet sales to businesses such as car rental companies. The company also said that car sales fell at a higher rate than light truck sales. Still, that appeared to be the exception rather than the rule in May.”
“Having made a swift 3 hours 15 minutes turnaround in Palau, Earthrace encountered some sea debris, which has damaged the port prop. The boat returned to port where the prop was removed and the drive shaft tested. The shaft has been put out of line and will require repair in Singapore. Earthrace left Palau at 0400 local time and will journey to Singapore on one engine. Her reduced speed of 16 kn will still maintain her lead on the current record, and help mitigate any further damage from possible sea debris, which is a known problem in this stretch of water. Ground Crew will arrive in Singapore on Monday 2nd June as planned, and will prepare for the repairs. The weather forecast is good and the revised ETA for Earthrace in Singapore is Friday 6th June.”
It has been a busy few days getting ready for a well attended open house, 
Although I’m not rewriting my Memorial Day post (frustrated that it has been lost after I posted Sunday night — grrr), I will include the 11 minute clip from CBS telling the history of Arlington Memorial Cemetery. On Monday, President Bush paid tribute to America’s service personnel who died in service to their country at this hallowed cemetery. “It is a solemn reminder of the cost of freedom that the number of headstones in a place such as this grows with every new Memorial Day,” said President Bush. “In a world where freedom is constantly under attack and in a world where our security is challenged, the joys of liberty are often purchased by the sacrifices of those who serve a cause greater than themselves.”
I did walk and drive around campus in order to take a few photos; one of the newest projects is the “on campus” football stadium … see hole in the ground photo in this 
