AutoNation Reduces Number of Detroit Orders

AutoNation expects to order about 30 percent fewer vehicles from Detroit automakers in the fourth quarter, spotlighting concerns over Detroit's high inventories of unsold cars and trucks.

The drop in ordering by the nation's largest car retail chain raises questions over whether GM, Ford, and Chrysler will have to cut production again in the first half of 2007, reports The Wall Street Journal.

AutoNation also reported a 30 percent loss of net income in the third quarter, blaming slower new car sales and higher interest rates which boosted the cost of carrying extra inventory.