Automakers In The US Aren't Building As Many Cars

Gm cheverolet impala car auto dealerREUTERS/Rebecca CookTennyson Chevrolet auto dealership is seen with a sign in the window ‘We have been here 54 years and…’ in Livonia, Michigan June 9, 2009. Tennyson received notice from General Motors last month it would not renew its franchise agreement. Picture taken June 9, 2009.

The auto industry has been booming.

Sales for 2o14 are running above a 16-million new-car pace.

The industry should sell between 16 and 17 million vehicles by the end of the year.

However, there are signs that carmakers are easing back on assembly lines as they coast through December.

October represented the third straight month of declines. Total output fell 1.2 per cent for the month.

That followed September’s 1.9 per cent drop.

Production also fell off in August.

The critical selling periods of the year are largely over. Automakers will now aim to conclude the fourth quarter on pace for sales, but not overproduce so that they’re left with excessive inventory headed into the holiday season.

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