Car, Light Truck Sales Dip in February

U.S. sales of cars and light trucks slipped a notch in February from last year’s levels, according to reports Wednesday from most of the major auto makers.

“The numbers are soft,” said David Healy, automotive analyst with S.G. Warburg & Co. “They’re not a disaster, but they have come in lower than most people were looking for.”

The total industry’s U.S. performance can’t be pegged until Ford, Nissan and a handful of the smaller companies report results later in the week. Without their counts, the overall sales were off about 6% from last year.

Several factors appeared to depress the market, including sticker shock, higher interest rates, low availability of some models and maybe even warm winter weather.

But the year’s slow start may produce rewards for consumers: The auto makers are likely to offer rebates and other incentives to get them shopping.

Total light-vehicle sales by General Motors Corp. were down 9% in February, in part because fleet sales were off 22% and limited numbers were available for normally fast-selling Chevrolet Cavaliers, the company said. GM has struggled with a slow production start at the plant building the new Cavalier and Pontiac Sunfire.

Chrysler Corp.’s passenger car sales were the best for a February in six years, but a slower market for minivans and sport utility vehicles depressed its truck sales by 14.9%. Overall, Chrysler was down 5.7%.

Chrysler’s minivan sales may have been derailed by publicity for its next generation of the vehicles, which were unveiled in January and go on sale in late spring. Buyers might be deferring purchases to wait for the new models.

Chrysler sweetened rebate programs on its minivans in February, and its executive vice president for sales, T.R. Cunningham, said dealers were reporting dramatic sales rate increases late in the month. Ford answered Chrysler Wednesday, announcing $1,000 rebates on its Windstar and Mercury Villager minivans.

Chrysler’s Jeep-Eagle division saw a decline, which Healy believes might be blamed in part on mild winter weather. A harsh February last year helped produce strong demand for utility vehicles.

Honda and Mazda also showed declines for the month. Toyota’s report was a bright spot: Its car and truck sales both showed increases.