Domestic Car Sales Fall 5.8% in January
Hurt by weak sales in early January, U.S. car sales dropped 5.8% last month, the automotive industry reported Friday.
Automotive analysts said that the totals would have been much worse if not for increased sales in the last 10 days of the month.
The total automotive industry, including both imports and domestics, reported sales of 716,367 autos in January, compared to 760,625 autos in January, 1988. Sales of domestic cars fell 3.9% for the month, while imported car sales dropped 10.3% from year-ago levels.
“The last 10 days really pulled up the whole month,” said Cynthia Certo, an automotive analyst with Integrated Automotive Resources, a Wayne, Pa.-based automotive research firm.
Analysts said that sales faltered in the beginning of the month because the vigorous sales push by auto manufacturers in the last 10 days of 1988 was highly effective. This resulted in slower-than-usual sales at the beginning of the new year.
Incentive Programs
“There was grave concern earlier in the year,” said Chris Cedergren, an automotive analyst with J. D. Power & Associates, an automotive research firm in Agoura Hills. “All the prognosticators were saying it was doom and gloom for the automotive manufacturers. We believed (that the weak sales) were payback from the strong selling period in the final 10 days of December.
“There was a tremendous upswing for the final 10 days which saved the month. . . . The bottom line is that sales aren’t great. They’re OK or good.”
Analysts added that extensive incentive programs helped the domestic vehicles in the last 10 days of January. For the month, General Motor’s sales fell 11.1%, while Ford’s sales rose 3.6%, and Chrysler’s sales dropped 6.7%.
Chrysler’s sales were hurt this month because it recently ceased production of its Reliant and Aries models, and hasn’t yet replaced them with its new A-body vehicles, the Spirit and Acclaim.
AUTO SALES Percentage changes in auto sales for the month of January are based on daily rates rather than total sales volume. There were 25 selling days in the current period and 25 in the year-ago period.
% January 1989 change GM 234,440 -11.1 Ford 165,835 +3.6 Chrysler 66,345 -6.7 Honda US 22,098 -1.2 Nissan US 7,710 +50.8 Toyota US 10,775 +141.5 Mazda US 2,557 +90.5 Domestic 510,567 -3.9 Toyota Imp. 36,376 -13.7 Nissan Imp. 29,108 +4.7 Honda Imp. 25,071 -20.4 Mazda 16,437 -8.7 Subaru 10,249 +2.9 VW Imp. 7,576 -37.1 Volvo 9,097 +5.2 Hyundai 15,174 -32.0 Mitsubishi 6,366 +20.6 Others* 50,346 -2.6 Imports* 205,800 -10.3 Total US 716,367 -5.8
* Estimate
