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DaimlerChrysler Sees Slowdown in Car and Truck Sales Next Year

28 September 1999

DaimlerChrysler Sees Slowdown in Car and Truck Sales Next Year, But it Will Expand Penetration and Build More Vehicles, Stark's News Service Interactive Reports

    CHICAGO, Sept. 28 -- DaimlerChrysler AG, one of the world's
largest makers and sellers of cars and trucks, foresees a slowdown in the U.S.
and Canadian automotive market next year but the company plans to manufacture
and sell more of the vehicles due to rising market penetration, Stark's News
Service Interactive ( http://www.starks-news.com ) reported today.
    The automotive business newswire, in an interview with DaimlerChrysler
Co-Chairman Robert J. Eaton, quoted the executive as saying that the company
anticipates the car and truck industry will sell 18.7 million units next year,
down a bit from forecasted sales of 17.4 million units this year.
    "The U.S. market has been up by nine percent to 10 percent during the past
two months.  And September is looking like the same kind of thing," Eaton
stated.  "This (1999 year) will be the number one year in the history of the
industry.  Next year continues to look pretty good as well."
    According to SNS Interactive, DaimlerChrysler sees the rate of growth in
U.S. Gross Domestic Product rising to 3.1 percent to 3.2 percent in 1999.  In
2000, "The rate of growth in U.S. GDP should be about 2.5 percent," Eaton was
quoted as saying.  "It still will be a strong economy.  But it will cool a
little bit.  We don't see a major recession on the horizon for next year.  So
it ought to be a good year."
    The DaimlerChrysler co-chairman told the business newswire, "We're going
to build a little over 3.1 million units of the Chrysler brands," in 1999.
"Mercedes-Benz will be about 1.0 million units.  Commercial vehicles will be
nearly 550,000 units.  So, if you add all that up, you are talking about
4.6-4.7 million units for this calendar year."
    He predicted that DaimlerChrysler will manufacture slightly more cars and
trucks next year.  "And that's assuming we will be doing a little better in
terms of penetration...So, I think you'll see us increase volume and
revenues."