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GM warns of slow sales
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December 2, 1998: 10:07 a.m. ET
November was good to Chrysler, Toyota, but GM expects to report slump
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NEW YORK (CNNfn) - Auto makers DaimlerChrysler AG and Toyota Motor Corp. both enjoyed record sales in November, but General Motors Corp. warned analysts to expect disappointing news.
According to a Wednesday report in the Wall Street Journal, GM told securities analysts Tuesday that sales figures for the month will decline "in the single digits," contrary to earlier indications of moderate gains.
The news highlights fears that GM, the world's largest auto maker, may not be able to regain market share lost during the summer's crippling labor strikes.
Although the 54-day strike halted production of GM vehicles and created temporary shortages of many models, GM assured the Journal that production capacity was no longer a concern, at least for its pickup trucks.
Light trucks are key to the U.S. auto market, which is set to enjoy the second-best sales year ever despite slumping demand for passenger cars.
However, GM still depends on the passenger market to a greater extent than its major competitors, forcing it to miss out on near-record sales in other categories.
GM will officially report its November sales Thursday, when Ford Motor Co. (F) also will report.
In sharp contrast, DaimlerChrysler reported Tuesday that its Chrysler unit -- which includes Chrysler, Plymouth, Dodge and Jeep -- sold a record 192,012 vehicles in November, up 7 percent from a year ago.
The monthly sales record is the auto maker's fifth in the last seven months. Dodge trucks led the surge with an 18-percent sales boost, while sport/utility vehicles made up the bulk of the advance, rising 13 percent to 55,025 total sales in the category.
"The Dodge truck boys are knocking it over the fence," said DaimlerChrysler Executive Vice President James Jameson.
The company's Mercedes-Benz unit will report sales later Wednesday.
Toyota fared even better, with sales leaping 21 percent to 103,904 units for the month.
In particular, Toyota's Camry sedan is still the best-selling U.S. car in the year with 374,525 units sold so far. For November, Camry sales increased 44.9 percent to 34,091, the model's new personal best.
Luxury Lexus models also remained at a fevered sales pace, with unit sales climbing 45.5 percent to 12,709 in the month.
Toyota shares (TOYOY) gained 7/16 to close at 51-1/16 on Tuesday. GM (GM) added 1-7/8 to 71-3/4, but DaimlerChrysler (DCX) slipped 1/8 to 91-3/8. 
-- from staff and wire reports
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