I think we all know somebody who tells the same story over and over. Or, perhaps, they have a joke that just has to be told every time they see you. With the holidays under way, you may have recently been forced to sit through tales of your relatives' impoverished childhoods or long rants about the younger generation. Or maybe someone will bring up how we kids (no matter how old we are, we're still the kids) were always getting into mischief -- telling the same old stories of our destructive days.
Well, today, I'm playing the role of repeat storyteller because sales figures for automakers were recently released, and it's the same story.
General Motors (NYSE:GM) reported the biggest decline, as total vehicle sales fell 13.1% in November. I guess GM didn't exactly get the results it was hoping for with its Lock and Roll promotion, which ran for the second half of November. I seem to recall a certain wise Fool mentioning doubt about that gimmick.
Ford (NYSE:F) didn't lose as much ground this time around, but still watched sales fall 4.3%, its ninth monthly decline of the year. The good news for Ford is that it is seeing some benefit from its plethora of newly designed vehicles. The all-new Mustang galloped to a 12% increase over last year's model. While I don't want to take anything away from that success, I actually expected a stronger performance, considering how highly the debut was anticipated. I imagine sales will pick up in 2005 as warmer weather approaches and the car can really be enjoyed. Sales of Ford's new lineup of the Five Hundred and the Freestyle, along with the Mercury Montego, cruised to a 62% gain over October's results.
The little guy continues to be the true bright spot among the U.S. automakers, as sales at DaimlerChrysler (NYSE:DCX) jumped by 8.9%. The newly designed 300 sedan, which just happens to have been named Motor Trend's Car of the Year, continuef to lead the way as car sales at Chrysler raced to a 17.5% gain.
So, can we expect anything different in the future, or will it be the same inappropriate joke told at just the wrong time? I'm probably going to surprise a lot of readers out there, but I actually expect GM -- and Ford in particular -- to see some improvements in the future. Both companies announced production cuts for the first quarter of 2005, which will be painful but should improve the bottom line down the road. GM just needs to follow Ford's lead and produce some new designs, and it too should see improved results.
Fool contributor Mike Cianciolo welcomes feedback and doesn't own any of the companies in this article.
