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Automotive industry

GM has reported a fall in car sales in December in what was a disappointing month for US car makers.

GM stocks fell 2.4% after it reported a 6.3% fall in sales compared with December 2012.

Ford and Chrysler both reported rising sales, but not the increases that industry analysts were expecting.

Chrysler sold 161,000 cars and trucks in December, up 5.7% on the same period in 2012 and Ford reported a 1.8% rise in December sales.

Analysts said that poor weather in parts of the US kept customers away from dealerships in December.

“At the very beginning of the month the pace of buying was slow because there were so many storms around the country,” said Edmunds.com senior analyst Michelle Krebs.

“Now what we’re seeing is some of the automakers are stretching their December deals into January.”

2013 is expected to be the best year for US auto market since 2007, with total annual sales of about 15.6 million

2013 is expected to be the best year for US auto market since 2007, with total annual sales of about 15.6 million

Kurt McNeil, vice president, of US sales for GM, said: “December started a little slow but sales were stronger later in the month, especially in the week between Christmas and New Year.”

Meanwhile Ford said that a four-day weekend for Thanksgiving late in November may have brought forward sales that would have fallen in December.

For Chrysler the Jeep brand continued to be a strong performer with a 34% rise in sales last month.

With a 9% rise in annual sales, 2013 was the strongest year for Chrysler since 2007.

“Our Jeep and Ram truck brands had a strong finish led by the all new 2014 Jeep Cherokee and the Ram pickup truck,” said Reid Bigland, head of US sales.

Overall, sales in 2013 were strong for the big three Detroit car manufacturers, who were helped along by strong sales of their truck offerings.

Truck sales tend to increase in relation to home sales, which were strong for much of the year as the US economic recovery spurred long-delayed housing activity.

“Trucks on the road are even older than cars on the road,” said Michelle Krebs.

However, Toyota, the third biggest player in the US market, didn’t do as well as the US manufacturers.

Toyota saw sales in December decline by 1.7% from a year ago to 190,843.

Analysts had been expecting Toyota to report rising sales.

However, 2013 is expected to be the best year for US auto market since 2007, with total annual sales of about 15.6 million.

That would be a strong recovery from 2009 when sales fell to 10.4 million during the depths of the recession.

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Nissan has cut its earnings forecast, saying it is feeling the pinch of tougher market conditions and recent recalls.

The Japanese car-maker now expects to make a net profit of 355 billion yen ($3.6 billion) for the year to March 31, 2014, down from its earlier forecast of a 420 billion yen profit.

The cut comes despite a rise in profit for the April-to-September period.

Nissan said that conditions in Europe remained “sluggish” while demand in emerging markets had been “volatile”.

Nissan expects to make a net profit of 355 bn yen for the year to March 31, 2014, down from its earlier forecast of a 420 bn yen profit

Nissan expects to make a net profit of 355 bn yen for the year to March 31, 2014, down from its earlier forecast of a 420 bn yen profit

“Nissan’s results reflect improved demand for our new products in Japan and the Americas,” Carlos Ghosn, chief executive of Nissan said in a statement.

“This was offset by difficult conditions in Europe, volatile demand in several emerging markets and higher expenses related to recalls.”

Nissan’s net profit for the six months to the end of September rose 6.5% from a year ago to 189.8bn yen.

The company also announced management changes, which it said were “designed to enhance Nissan’s performance and ensure the company will deliver the 8% operating profit margin target set out in the Power 88 mid-term plan”.

Under the changes, Nissan’s Chief Operating Officer Toshiyuki Shiga will become a vice chairman with responsibility for external affairs, asset management and corporate governance.

The office and functions of the COO will be reorganized among three senior executives, Nissan has said.