Weak Auto Manufacturer Sales Reports and idle plants

As we expected, the auto manufacturer's sales reports today were weak, as both GM and Fiat Chrysler reported their U.S. sales slipped in October, hurt by fewer selling days and a cutback in fleet sales, amid what is expected to be another month of declines across the industry. 

General Motors' sales slipped 1.7% in October to 258,626 light vehicles. The Detroit auto maker, which has been paring back on fleet sales, said its more profitable retail business strengthened, rising 2.5% from a year ago, as the industry benefits from "key fundamentals like job security, rising personal incomes, low fuel prices and low interest rates.

Fiat Chrysler Automobiles' sales tumbled 10% in the month to 176,609. The Italian-U.S. auto maker said retail sales accounted for 77% of the total and pointed to continued strength in the Ram truck and Jeep brands. Car sales skidded 33% while truck sales shot up 12%. Ford Motor said it would not release its October U.S. sales report until later this week due to a fire at its headquarters on Monday.

After booming sales since the recession ended, the auto industry is now sending mixed signals. For instance, Ford Motor is idling four assembly plants. Its Louisville factory will be idle for two weeks. Workers at two plants in Mexico and one in Kansas City, where the highly profitable F-150 pickup, the nation's most popular vehicle, is produced, will take a week off.Yet at the same time, General Motors is running so much overtime at its Flint Truck plant, where the Chevrolet Silverado and GMC Sierra 1500s are assembled, it has been hiring temporary workers to give the regular crew a two-day weekend occasionally. Fiat Chrysler is ending production of the Dodge Dart and Chrysler 200 in response to consumers' drift away from compact and midsize sedans toward crossovers and SUVs. But there is no planned idling of any North American plants, according to spokeswoman Jodi Tinson.