New-Car Sales Slip 6.6% in Early April
Hampered by a 14.3% sales decline by General Motors, total new-car sales dipped 6.6% in early April, the U.S. auto companies reported Monday.
Of the six domestic auto manufacturers, only Ford and Chrysler had increases in sales for the April 1-10 period compared to the year before.
The remaining four companies--GM, American Motors, Volkswagen of America and American Honda--said sales were below year-ago levels for the period.
Nissan, which began building cars in Smyrna, Tenn., last month, did not release sales for the period.
Ford and Chrysler gained market share at the expense of GM during the period despite the giant auto maker’s decision to offer cut-rate financing on small cars. Both Ford and Chrysler have had reduced-rate financing programs since late February.
GM sold 55.8% of the domestically produced cars in early April this year, compared to 60.8% in the comparable 1984 period.
GM officials offered no explanation for its sales decline, but analysts said the industry’s relatively strong sales in early April last year made GM’s current sales loss seem more severe.
American Honda, which usually reports large sales gains, reported its second decline of the year. Company officials attributed the 19.5% decrease to dealer inventory shortages.
Domestic auto makers sold a total of 221,138 new cars in the first period of April, compared to 210,395 in the same period last year.
Percentage changes are calculated on daily sales rates because their were nine selling days in the period this year and eight in the 1984 period.
On a seasonally adjusted basis, the domestic manufacturers’ early April sales equaled a 7.8-million annual rate, the first time this year that the annual rate has fallen below the 8-million level.
The annual rate is a reflection of the number of cars that would be sold if the early April pace continued for a full year.
Auto Sales Percentage changes in auto sales for the first 10 days of April are based on daily rates rather than total sales volume. There were 9 selling days in the 1985 period and 8 selling days in the year-ago period. Total import sales are estimated based on incomplete reports.
April 1-10 April 1-10 % 10-Day 1985 1984 change GM 123,461 127,994 -14.3 Ford 58,368 48,462 +7.0 Chrysler 32,018 24,612 +15.6 AMC * 3,000 4,045 -34.2 VW U.S. 1,276 1,957 -41.9 Honda U.S. 3,015 3,325 -19.5 TOTAL 221,138 210,395 -6.6
*Estimate
