General Motors Corp. said Friday it plans to build 5.1 percent fewer cars and trucks in North America in the second quarter because of weak sales, raising concern it won’t meet earnings expectations.
GM said in its first estimate of April-June output that it will make 1.38 million vehicles, down from 1.46 million in the year-earlier quarter. Truck production in the U.S., Canada and Mexico will rise 2.4 percent and car output will fall 11 percent.
Dealer lots are bulging with unsold vehicles as GM sales have fallen 6.6 percent in 1998. Cutting output eases the backlog but jeopardizes profit because automakers record sales as cars leave the factory.
GM will be hard-pressed to match second-quarter earnings estimates of $2.55 a share, analysts said.
