Adjustments to Output: Down (For Now). (Auto by the Numbers).

Challenges are abound in today's global automotive industry. The combination of a tired consumer, slowing economic activity and the events of September 11th outline a contentious sales environment going forward. Forecasting during wartime is fraught with difficulties, as history provides little guidance on the coming events or market reaction to the same.

CSM Worldwide's recent forecast update accounts for anticipated reactions to inventory accumulation and a slower sales pace. Within NAFTA, we have adjusted our overall setting downwards to 15.34 million units, a decline of 380,000 units from our previous forecast. Ford accounts for 85% of the production correction, with the balance tallying from DaimlerChrysler. On the heels of the extreme 0%, 36-month incentive activity that commenced in mid-September, GM has been able to bolster demand throughout the lineup with better year-over-year performances thanks to the truck sector. New Domestic production remains strong as consumers gravitate to products offering greater residual value and satisfaction.

Behind the forecast is a story of mix-not necessarily volume. As noted, Ford is slated to correct passenger car volumes in almost every area. The most acute reductions are expected for C170 (Focus), D186 (Taurus/Sable) and the launch-plagued DEW98 (Lincoln LS and Thunderbird). The heart of Ford's truck sector is facing a myriad of issues, including fallout from the tire recall, launch and product replacement delays, and aging designs. Reflective of this demand decay is UN93/173 (Expedition/Navigator), WIN126 (Windstar) and P150/151 (Ranger). Year-over-year declines are over 25% for each platform. Far below expectations is the U152 (Explorer/Mountaineer).

DaimlerChrysler's passenger car performance is both disappointing and predictable. Most of DCX's car entries fit the mold as "placeholders" in the lineup, with little in the way of competitive factors drawing consumers in. DC's wish to only match competitive incentives given the current product portfolio has relegated the NLH (mid-size), JR (compact) and NPL (Neon) to inefficient "natural demand" volumes going forward. A year after launch, the RS minivans have missed internal targets by almost 20%, with little relief in sight.

Despite GM's incentive-laden market assault, volumes are still strong within the New Domestic ranks. Makers such as Toyota, Honda, and BMW are carrying their weight with robust demand for ost of their mass-market entries. VW and Nissan are experiencing some demand-related issues, although overall volumes are performing better than the general market.

The latest 2002CY CSM Worldwide setting for NAFTA light vehicle production is 15.3 million units--assuming a U.S. sales rate of 15.8 million units. Our assumption holds for a demand rebound during the second half of 2002CY given the interest rate reductions and fiscal/monetary stimulus.

GENERAL MOTORS                  3Q-01  4Q-01  '01 CY  '00 CY  Y/Y %

PASSENGER CAR (000's)

C5 (Corvette)                     8.1    8.6   35.4    34.9     1%
CR (Camaro/Firebird)             12.0   13.7   48.5    74.9   -35%
G/G-Prem (Luxury FWD Sedans)     40.0   30.6  147.3   192.4   -23%
GM2902 (Saturn LS)               24.2   22.0   99.7    86.0    16%
GM4200 (Corsa)                   16.6   27.0   83.6    93.0   -10%
GMX130/P90 (compact Sedans)     112.6  100.1  474.9   645.3   -26%
GMX690 (Aurora/LeSabre/Bonn)     52.0   46.5  205.1   270.6   -24%
J2-Car (Cavalier/Sunfire)        94.5   87.4  373 6   437.1   -15%
K/K-Spec (Eldo/Deville)           2.1    1.5    7.8    12.2   -36%
MS2000 (Mid-Size Sedan/Coupes)  166.1  158.6  620.5   747.3   -17%
Z2-Car (SC/SL)                   35.9   37.4  170.2   175.9    -3%
Other                             0.0    0.7   17.9    45.9   -61%

Tota1-Passenger Car               564    534  2,284   2,815   -19%
                               3Q-01  4Q-01  '01 CY  '00 CY  Y/Y %

LIGHT TRUCK (000's)
GMT250/257 (Aztek/Rendezvous)   23.7   20.4    70.3    40.9    72%
GMT315 (Saturn VUE SUV)          0.0    4.0     4.0     0.0     NA
GMT325 (S10/Sonoma)             45.0   45.9   177.0   307.5   -42%
GMT330 (Blazer/Jimmy/
Bravada)                        29.7   32.3   126.5   386.7   -67%
GMT360 (TBlazer/Envoy/
Bravada)                        81.9   82.9   257.8     0.0     NA
GMT600 (Express/Savana)         28.3   33.7   137.1   173.5   -21%
GMT800/805/806/880
(FS P-Up/SUT)                  246.5  254.3   998.1   904.3    10%
GMT820/830 (FS-SUV)            113.5  124.0   545.7   449.3    21%
GMX110 (Venture/Silh/
Montana)                        54.2   48.4   221.0   263.3   -16%
M-Van (Astro/Safari)            18.1   18.0    80.3   122.3   -34%
Isuzu: UCR145 (SUVs)            18.5   19.3    88.2   100.2   -12%
Other                            0.0    0.0     0.0   227.5  -100%

Total-Light Truck                659    683   2,706   2,875     6%
Total All GM                   1,224  1,217   4,990   5,691   -12%
PASSENGER CAR (000's)

FORD MOTOR                       3Q-01  4Q-01  '01 CY  '00 CY  Y/Y %

C195 (Ikon)                        5.8    8.4    22.4     0.7     NA
CDW27-162/SW164 (Cnt/Cougar)       6.7    5.5    27.1    86.0   -69%
J94A (626)                        13.4   11.7    55.4    67.3   -18%
CT120 (Escort)                    20.4   17.0    87.7   105.7   -17%
C170 (Focus)                      49.7   69.1   292.2   388.1   -25%
D186 (Taurus/Sable)               86.6  103.2   447.2   555.6   -20%
DEW98/M205 (Lincoln LS, T-Bird)    6.9   15.5    45.1    58.8   -23%
EN53/FN145 (Large/Lux Sedans)     37.8   61.2   266.9   317.1   -16%
FN74 (Continental)                 2.4    2.5    15.9    22.6   -30%
SN95 (Mustang)                    31.5   32.6   156.6   180.4   -13%
Other                              0.0    0.0     0.0     0.0     NA

Total-Passenger Car                261    327   1,417   1,782   -21%

LIGHT TRUCK (000's)

FORD MOTOR                       3Q-01  4Q-01  '01 CY  '00 CY  Y/Y %

P131 (>8,500 F-Series)            81.3   87.4   405.9   479.8   -15%
P150/P/U207 (Ranger/Exp
Spt/Spt Trc)                      98.3  102.8   418.5   554.6   -25%
PN96-102 (<8,500 F-Series)       121.4  127.4   531.1   615.5   -14%
U152 (Explorer/Mountaineer)       86.7   81.3   341.4     4.2     NA
UN93/173 (Expedition/Navigator)   42.9   48.2   200.9   286.5   -30%
U204 (Escape/Tribute)             56.7   67.7   262.4   102.6   156%
VN127 (Econoline/Club Wagon)      29.5   30.2   144.2   216.5   -33%
VX149 (Villager/Quest)             4.9    7.4    44.0    68.6   -36%
WIN126 (Windstar)                 37.3   48.9   207.3   279.5   -26%
Other                              0.0    0.0     0.0   359.0  -100%

Total-Light Truck                  559    601   2,556   2,967   -14%
Total All Ford                     820    928   3,972   4,749   -16%
PASSENGER CAR (000's)

DAIMLERCHRYSLER              3Q-01  4Q-01  '01 CY  '00 CY  Y/Y %

JR (Stratus/Sebring/Cabrio)   52.3   46.8   247.2    81.0     NA
NLH (Intr/Concd/LHS/300M)     32.8   42.6   199.0   291.9   -32%
NPL (Neon)                    29.9   31.5   172.9   227.5   -24%
SR/PR (Viper/Prowler)          1.2    1.1     5.1     4.6    11%
ST (Sebr/Aven/Ecl/Gal)        48.4   40.8   186.8   218.3   -14%
Other                          0.0    0.0     0.0   159.6  -100%

Total-Passenger Car            165    163     811     983   -17%

LIGHT TRUCK (000's)

DAIMLERCHRYSLER              3Q-01  4Q-01  '01 CY  '00 CY  Y/Y %

AB (Ram Van)                   9.5    7.7    57.1    73.8   -23%
AN/DN (Dakota/Durango)        68.3   64.3   289.7   375.4   -23%
BR (Ram Pickup)               36.0   22.7   242.1   432.5   -44%
DR (Ram Pickup)               39.7   94.5   134.3     0.0     NA
KJ (Liberty)                  54.2   51.0   140.7     0.0     NA
PT44 (Crusler)                54.5   46.4   208.7   146.7    42%
RS (Caravan/Voyager/T&C)     107.2  113.1   531.8   170.0     NA
TJ (Wrangler)                 15.3   14.6    67.9    96.5   -30%
WJ (Grand Cherokee)           48.2   42.0   207.2   293.2   -29%
W163 (M-Class)                18.5   18.8    80.7    83.7    -4%
Other                          1.3    1.4    54.7   541.1   -90%

Total-Light Truck              453    477   2,015   2,213    -9%
Total All DaimlerChrysler      617    639   2,826   3,196   -12%
PASSENGER CAR BY DESIGN PARENT (000's)

NEW DOMESTIC               3Q-01  4Q-01  '01 CY  '00 CY  Y/Y %

BMW:
   E36-7 (Z3)                8.1    7.7    35.4    38.7    -8%
Honda:
   NE/IN/CO (Accord/
    TL/CL)                 114.7  117.3   482.9   470.1     3%
   CS (Civic/EL)            96.0  106.2   420.9   125.4     NA
Renault/Nissan:
   ZQ (Altima)               0.0    0.0    73.0   150.1   -51%
   TK (Altima)              27.8   45.1    72.9     0.0     NA
   HS (Sentra)              40.9   33.3   161.4   139.4    16%
   Sentra (Tsubame/
    Tsuru)                  30.3   31.0   117.7    89.7    31%
Fuji Heavy:
   66L (Legacy)             22.6   25.1   103.7   108.1    -4%
Toyota:
   414T/700T (Camry/
    Solara/Avalon)          41.7   31.5   292.2   422.6   -31%
   300N (Camry)             38.2   84.4   122.6     0.0     NA
   560T (Corolla/Prizm)     82.0   68.4   316.6   330.4    -4%
Volkswagen:
   PQ34 (Jetta/
    New Beetle)             63.8   76.6   320.2   370.0   -13%
   A3 (Cabriolet)            2.7    3.2    13.9    12.9     8%
   Type 1 (Old Beetle)       7.5    9.0    38.3    40.9    -6%
   Other                     0.2    0.3     6.4   333.8   -98%

Total-Passenger Car          577    639   2,578   2,632    -2%

LIGHT TRUCK BY DESIGN
PARENT (000's)

NEW DOMESTIC               3Q-01  4Q-01  '01 CY  '00 CY  Y/Y %

BMW:
   X5 (E53)                 23.1   19.8    81.6    45.0    81%
Honda:
   BM (Odyssey)             44.8   53.6   198.9   159.9    24%
Renault/Nissan:
   D21 (Hardbody)           10.0   10.2    36.5    45.8   -20%
   QW/WQW (Frontier/
    Xterra)                 43.2   40.7   169.1   227.1   -26%
Suzuki:
   YG4 (Tracker/Vitara)     15.0   15.3    56.4    68.2   -17%
Toyota:
   485T (Tacoma)            41.4   38.4   162.7   145.0    12%
   477T (Sienna)            23.7   24.1    94.2   123.6   -24%
   800T (Tundra, Sequoia)   40.5   41.3   167.3   129.7    29%
   Other                     0.2    1.4     2.6     0.0     NA

Total-Light Truck            242    245     969     944     3%
Total All New Dom.           819    884   3,547   3,576    -1%
TOTAL UNITED STATES, CANADA & MEXICO (NAFTA)


Total Passenger Car  1,566  1,663   7,090   8,213  -13.7%
Total Light Truck    1,913  2,006   8,246   8,999   -8.4%
Total Light Vehicle  3,480  3,669  15,335  17,212  -10.9%