Profits later. (Hot Spots).(KPMG survey shows expectations of US auto sector)(Brief Article)

Broadcasting & Cable, January, 2003

A survey released last week by KPMG indicates that the domestic auto industry doesn't expect a return to pre-recession profit levels until 2005, largely due to the slow pace of the recovery and consumer expectations for aggressive financing incentives (try 0%).

The survey was released almost simultaneously with an announcement by CHRYSLER that it would have lower first-quarter production than a year ago due to higher inventories and low sales expectations at the start of the new year. Chrysler was the second domestic Big Three automaker to announce reduced first-quarter production--earlier FORD said it would cut production by 5% in the first quarter. But some foreign car makers appear in better shape. Last week Korea-based HYUNDAI MOTOR CO. forecast a 10%...

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