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Article: Caution: profitability potholes ahead: production and sales of cars and light trucks are forecast to slip slightly this year. Automakers and their suppliers are more focused on trying to sustain profits in an era of high raw materials costs and rising gasoline prices.(Automotive Outlook)(Cover Story)
- Article from:
- Metal Center News
- Article date:
- April 1, 2005
- Author:
CopyrightCOPYRIGHT 2005 Sackett Business Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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North American car and light truck production--particularly output among the Big Three automakers--started a bit slow this year. Yet most industry observers expect the year as a whole to mirror 2004, the fourth-best year for production volumes.
Consumer preferences and car designs have begun to move away from large sport utility vehicles (SUVs), however, which eventually could slow consumption of steel, aluminum and other metals by the auto industry.
Despite a string of high-production years, the profitability of automakers and their parts suppliers remains a question in light of escalating raw materials prices and a marketplace that has come to expect ...