Auto Sales Surpass Expectations
General Motors Corp. and Ford Motor Co. on Friday posted better-than-expected U.S. car and truck sales in September, fueled by demand for pickup trucks and sport- utility vehicles and by end-of-model-year incentives.
GM posted its third consecutive monthly sales increase, rising 3.9% from the year-earlier period. Ford’s sales fell 1.8%, in part because of fewer sales of Taurus cars to fleet buyers. Toyota’s Camry unseated Taurus as the best-selling U.S. car in the 1997 model year.
GM’s results lifted September’s industrywide performance, which remained little changed from a year ago. The industry’s sales rate hit an annual pace of 15.2 million, down from 15.3 million in the year-earlier month. Auto makers consider a sales rate of more than 15.0 million to be a good month.
GM, the world’s largest auto maker, said pickup truck, minivan and sport-utility vehicle sales increased 7.2% to 166,927, and car sales climbed 0.2% to 233,705. Analysts expected an overall increase for the company of 2% to 3%.
The auto maker was helped by higher sales to fleet buyers, such as rental car companies, and rebates and other incentives designed to reduce inventories of 1997 models. The traditional start of the new model year is Oct. 1.
While GM also added some incentives on its 1998-model small pickup trucks and minivans, it said it expected sales gains to continue this year.
“We’re optimistic that we’re going to be able to carry this on for the next couple months,” said Donald DeVeaux, director of market analysis for GM in North America.
Ford said North American-built car sales fell 13% to 129,845, while pickup truck, sport-utility vehicle and minivan sales rose 8.3% to 177,025. Analysts had expected Ford’s sales to drop about 4%.
The world’s second-biggest auto maker is bullish on prospects for the rest of the year. It boosted its planned fourth-quarter car production by 5%, to 418,000, and truck production by 0.7%, to 647,000.
Some auto dealers said consumers seem upbeat too.
“Confidence is pretty good. People seem to be encouraged by the low inflation rate and the stable interest rates,” said Bob Wheat, general manager of Village Ford in Dearborn, Mich. “They’re making decent money, and they seem to be comfortable with that.”
It’s not all rosy in Detroit, however. Chrysler Corp. said Wednesday that its sales declined 14%. Several analysts cut earnings estimates for the company, citing the weak performance.
GM shares fell 38 cents to close at $67.81 after earlier hitting a 52-week high of $69.81. Ford shares dropped 31 cents to close at $46.50, and Chrysler shares rose 44 cents to close at $35.94. All trade on the New York Stock Exchange.
