U.S. Auto Sales Up Only 3.7% in Mid-April
Despite the massive incentive programs put out by the domestic auto manufacturers at the beginning of April, domestic auto sales rose only 3.7% in mid-April.
Among the Big Three auto manufacturers, only Ford reported an increase in sales from mid-April of 1988. Much of the gain came from the large sales increases by the Japanese auto manufacturers that produce cars in this country. These manufacturers are expanding production capacity at their U.S.-based assembly plants.
The domestic auto industry reported that it sold 237,386 units in the 10-day sales period, compared to 228,991 units a year ago. Ford sales increased 14.5%, while General Motors’ sales fell 1.5% and Chrysler’s sales dropped 10.3%.
“Its not a spectacular (sales) performance, but sales are OK to good,” said Christopher Cedergren, an automotive analyst with J. D. Power & Associates in Agoura Hills. “Given the level of incentive programs that are (running), sales should be at a stronger pace. . . . One of the reasons that the selling tempo is good is that so many transplants are (listed among the domestics) now.”
Other auto analysts also gave the sales period mixed reviews.
“Overall, the period was very disappointing,” said Cynthia Certo, an automotive analyst with Integrated Automotive Resources, an automotive research firm in Wayne, Pa. “Of course, the domestic total is up, but only because Ford did as well as was expected.” The sales report also may “be a sign that the incentives are not doing as well as the auto makers would like.”
“Sales are about in line with what was expected,” said Maryanne Keller, an auto analyst with Furman Selz Mager Dietz & Birney. “Everyone expected them to be flat.” Keller added that the year-ago period was pretty strong, so the fact that the numbers were up a bit indicated that there was still some strength in the market.
Among the transplants, Toyota’s sales rose 328.2%, and Mazda’s sales jumped 78.9%, while Nissan’s sales dropped 34.3%. Mitsubishi reported sales of 698 autos in its new U.S. manufacturing plant in Illinois, which is a joint venture with Chrysler. The percentage increase for Toyota is large because it includes sales figures for U.S.-built Camrys that began U.S. production in October, 1988, and there are no comparable year-ago figures.
AUTO SALES
April 11-20 % 10-Day 1989 change GM 110,662 -1.5 Ford 75,131 +14.5 Chrysler 30,368 -10.3 Honda U.S. 11,323 +5.4 Nissan U.S. 1,939 -34.3 Toyota U.S. 5,977 +328 Mazda U.S. 1,288 +78.9 Mitsubishi U.S.* 698 -- TOTAL 237,386 +3.7
*Estimate
