US light vehicle sales are being hit by the crisis in the US mortgage market according to remarks made by GM’s Bob Lutz and reported by Reuters.
Lutz, who was in Louisville, Kentucky to attend an automotive industry conference, said he did not know how GM’s own sales had performed in April to date, but said he expected the whole sector would feel the impact of the stress on the housing finance market.
“The market as a whole has been a little weakish. That has come as a result of the housing market problems and the mortgage industry meltdown,” Lutz told Reuters.
“A lot of people are finding themselves in a position of reduced affordability and that has had an impact, not just on us, but across the industry.”
GM in March also said it expects results from finance company GMAC, in which it retains a 49-percent stake, to remain under pressure this year due to increased defaults in subprime mortgages or loans to borrowers with poor credit.