BREAKING NEWS
Search
Ford-Motor_4

Automakers unfazed by U.S. spending cuts: Ford Motor Company, General Motors Company

Spending cuts announced by the U.S. government on Friday were unable to make a dent in the confidence levels of automakers such as General Motors Company(NYSE:GM) and Ford Motor Company(NYSE:F), who expect demand for their vehicles to remain robust.

The U.S. is a nation obsessed with cars and though demand has been a bit sluggish of late due to the prolonged slowdown that the country is passing through, there has been a revival in consumer sentiment in recent months.

Automakers are determined to hang on to this optimism and not let it die away and have announced a slew of new fuel-efficient cars designed to be easier on the pockets of buyers, so far as their fuel consumption is concerned.

Despite a fall in the sales of its Lincoln brands, Ford reported its best February sales in six years.

It’s inevitable there might be a slight, slight offset, but I think the positive factors” boosting auto demand “will overcome,” Ken Czubay, Ford’s vice president of U.S. marketing, sales and service, said on a conference call.

According to industry figures U.S. light-vehicle sales in February rose 3.7 percent to 1.19 million, matching the average estimate of 10 analysts. The annualized sales rate, which is adjusted for seasonal trends, rose to 15.4 million from 14.5 million a year earlier. The average sales pace projected by 15 analysts was 15.3 million.

With Democrats and Republicans deadlocked over how to replace across-the-board cuts, known as sequestration, totalling $1.2 trillion over nine years, President Barack Obama issued an order Friday night putting the reductions into effect — $85 billion worth for the remaining seven months of the current fiscal year.




Karen Loftus is a Minnesota native, she grew up in Hastings, Minnesota and graduated from Hastings High School. Her passion for news started at a young age. While in high school, she reported and anchored for the school's Friday news segment. Karen Loftus attended St. Cloud State University, majoring in broadcast journalism and minoring in political science. She joined SCSU's news station, UTVS News, in the beginning of her college career. During the summer of 2011, Karen interned at KSTP-TV in St. Paul where she was able to select and write stories for the Hubbard Broadcasting-owned station's web page and community websites. In her free time, Karen enjoys spending time with family, friends, and her family dog Vinnie. Karen enjoys living in the Midwest because of her love for the changing seasons and for her favorite sport, snowboarding. Karen loves to meet new people and to hear their stories. She is thrilled to be reporting in southern Minnesota and to continue to learn more about her new hometown.