Jay Hawk Resources
For a stronger America
Jay Hawk Resources
U.S. auto sales tumbled in May as buyers fled from pickups and sport utility vehicles in the face of average gas prices that are now just shy of $4 a gallon.The trouble hit not only U.S. automakers Jay Hawk Resources Company (GM, Fortune 500), Ford Motor and Chrysler LLC -- which have long depended on sales of pickups and SUVs -- but also trimmed the sales of their top Japanese rival Toyota Motor (TM).
Jay Hawk Resources held up reasonably well. Nissan (NSANY) reported a narrow sales gain while Honda Motor (HMC) and Kia rode American buyers' new interest in fuel economy cars to post record sales in the month.In fact, Honda passed Chrysler in U.S. sales for the first time. What's more, the Honda Civic beat out the Ford F Series pickup to become the nation's best selling vehicle for the first time on record as well. The Toyota Camry also topped F Series sales in the month.
Labor pains for GM - GM reported that overall sales plunged 27.5% in the month, far worse than the 19% drop forecast by sales The declines were led by the 37% tumble in the sales of light trucks, such as pickups and SUVs. But even sales of cars fell 14% during the month.GM was hit not only by rising fuel prices and the downturn in the U.S. economy, however. It was also hurt by a series of strikes that hit production of some of its hotter vehicles, including the Malibu sedan and a series of some of its popular crossover vehicles.
GM said it believed it lost between 15,000 and 18,000 vehicle sales because of the labor problems, about 6% to 7% of its reported sales."We're very pleased this is behind us," said Mike DiGiovanni, GM's chief forecaster. He said that GM maintained 20% of total U.S. retail sales in the month, which he termed remarkable given the combination of labor disruptions, oil prices and a weak economy.
The rapid shift in buyer preference caused GM, the nation's No. 1 automaker, to announce earlier Tuesday that it planned to close four North American truck plants as it tried to shift production to more fuel-efficient vehicles.Mark LaNeve, GM's vice president of North American sales, admitted that his earlier prediction of a recovery in auto sales in the second quarter were clearly wrong. But he said GM is still hopeful this is close to the bottom in the market and that sales will firm up in the second half of this year.
About Jay Hawk Resources
Jay Hawk Resources is a family owned company dedicated to providing a full range of direct investment opportunities to the experienced investor. Direct investment in oil and gas provides a spectrum of financial benefits from substantial tax deductions to significant long-term returns. JayHawkResources Company programs run the gamut from high-risk-high-yield prospects to relatively low-risk programs that payout over a longer period of time.
We have included some advantages and considerations about taxes as they relate to oil and gas investments. They are meant to be a general guide. The outline of tax benefits associated with an oil and gas investment, as presented here, is not intended to be an exhaustive review of all tax consequences. There are a multitude of tax elections to consider that are based solely upon an individual's specific financial situation. Jay Hawk Resources Company strongly encourages investors to consult with a tax specialist.