GM Revises Downward Estimates Of 2001 & 2002 North American Car Sales.

General Motors has cut expectations for 2001 North American car sales to 16.4 million from 16.8 million, and to 15.5 million in 2002 amid price competition and volatile demand after the recent terror attacks in the United States.

Ron Zarrella, president of GM said that new car sales fell by about 30 percent in the first week after the attacks but had recovered since the company launched its new incentive programs. "With the stimulus in the market, it could bring the market back," Zarrella said. "We are cautiously optimistic we can hold volumes in the fourth quarter."

Ford and DaimlerChrysler have also launched zero-interest financing deals and discounts to kick-start consumer demand. Unlike Ford, GM has not altered its third-quarter forecasts or warned of any significant reduction in earnings for the three months to September 30.

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