General Motors Corp. and Ford Motor Co. will produce fewer cars and light trucks because of consumer nervousness about a possible war with Iraq and high fuel prices, according to the Wall Street Journal.
Several RV manufacturers have done the same recently, reducing their production schedules to four-day work weeks to avoid building excess inventories at the dealer and manufacturer levels.
RV manufacturing company and dealership executives are in a difficult forecasting position because data about February wholesale shipments and retail sales will not become available for more than a month.
The Recreation Vehicle Industry Association (RVIA) is expected to issue a wholesale shipments report later this week, but it will cover the month of January, which now might seem like ancient history to some.
GM announced it will lower its North American second-quarter production by 11%, according to the Journal. Ford did not reveal the amount by which it plans to reduce output.
However, the Journal added, “Automakers have reasons not to push the panic button too soon. If the Iraq situation is resolved and oil prices float back down, market demand could rebound quickly.”