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'Autoline Detroit': Ford Economist Sees Near-Record U.S. Sales

14 December 1998

'Autoline Detroit': Ford Economist Sees Near-Record U.S. Sales

    DETROIT, Dec. 11 -- On the television program "Autoline
Detroit" Martin Zimmerman, the chief economist at the Ford Motor Company
predicted 1998 car and truck sales would reach almost 16 million units.
"At the beginning of the year we were forecasting 15 million to 15.5 million
units, including medium and heavy trucks," Zimmerman said.  "We'll probably
come in at 15.9 million.  We were a little pessimistic, but it's not bad to be
on the wrong side of a good year."
    The all-time sales record for the U.S. market was set in 1986 at
16.3 million units.  That means 1998 could represent the second best year in
the history of the industry.  Zimmerman credits the surprisingly strong U.S.
economy with the healthy sales.  "If you look at the basic economic condition
in the U.S. they're fundamentally sound," Zimmerman added.  "Unemployment is
very low, interest rates are low, oil prices are low and inflation is low.
All that adds up to good car sales."
    Early in the spring, Ford, General Motors and Chrysler began offering
"loyalty coupons" to lure current owners into showrooms.  At that time many
analysts predicted there would be a payback period in the fourth quarter when
sales would slow.  Zimmerman says the near lack of price hikes have kept the
market strong.  "Overall, pricing has been low," he said.  "There's value in
that, customers see it, and they're coming into the showrooms."
    "Autoline Detroit," hosted by John McElroy, Editorial Director of
Automotive Industries magazine, airs Sundays at 10 a.m. on Detroit Public
Television.  Videotapes are available at http://www.theautolink.com.
Underwriters of "Autoline Detroit" are Visteon Automotive Systems and General
Electric.  It is produced and distributed by Blue Sky Productions.