Cars Take Back Seat to Trucks

By DONALD W. NAUSS

Dec. 4, 1998 12 AM PT

TIMES STAFF WRITER

DETROIT —

For the first time in more than half a century, auto makers sold in a single month more light trucks--pickups, sport-utility vehicles and minivans--than passenger cars to U.S. consumers.

Trucks captured 50.9% of the total vehicle market in November. The performance marks a milestone in a prolonged shift in driving preferences by Americans away from sedans and coupes and into more versatile light trucks.

The popularity of light trucks shows little evidence of abating. Some industry officials expect trucks to outsell cars for all of 1999, something that has not occurred since World War II when car production was halted to make military vehicles.

“Trucks are the hot property,” said Chris Cedergren, an analyst with Nextrend, an auto consulting firm in Thousand Oaks. “They have the image consumers want and the profits manufacturers love.”

Overall U.S. vehicle sales rose 2.1% in November. Truck sales spurted 4.5%, while car sales dipped 0.3%. November is typically a strong truck month as consumers buy four-wheel-drive vehicles in anticipation of winter.

Auto sales--a closely watched barometer of the nation’s economic strength--are up 2.5% to 14.3 million vehicles thus far this year. They are expected to exceed 15.3 million for the year, the best since 1988, when consumers bought 15.5 million vehicles.

While the overall industry is enjoying its fifth consecutive year of healthy sales, General Motors Corp. continues to struggle and lose market share.

GM, the nation’s No. 1 auto maker, on Thursday reported its November sales dropped 5.8%. It was hurt by a shortage of trucks caused by strikes earlier this year, the launch of its new Chevrolet Silverado full-size pickup truck and intense rebate competition in cars and minivans.

The company said light-truck sales fell 8.2% while car sales slipped 3.5%. GM’s market share was a dismal 28.9%, far below the 32% goal that company officials have set for next year.

Ford Motor Co. on Thursday reported a 2.1% increase in vehicle sales, largely on the strength of truck sales. Light-truck sales rose 8.7% while car sales fell by the same percentage.

Robert Rewey, Ford’s marketing vice president, said 1998 would be the company’s best in two decades. While industry sales will likely decline a bit next year, he said, 1999 should still be in the healthy 15-million range.

Other car makers reported November results earlier this week. DaimlerChrysler said sales at both its Chrysler and Mercedes-Benz units increased 6.7%. Among the Japanese, Toyota sales soared 21.3% while Nissan’s tumbled 12.8%.

Despite November’s gains by trucks, cars still account for 52.3% of vehicle sales in 1998. But analysts say that if gas prices remain low and the economy robust, trucks could soon overtake cars on an annual basis.

The popularity of light trucks is being driven by their utility and stylishness. Auto makers are introducing more models with more room and power, easier access and car-like ride and handling.

“They’ve got size, they’ve got power, they’ve got utility, they’ve got style, and all for a reasonable price,” said George Magliano, analyst with WEFA Group in New York.

However, some analysts warn that the truck boom will not last. They note that emissions and safety regulations are likely to force auto makers to make trucks more like cars.

There are already signs of a blurring of the line between cars and trucks with the development of so-called hybrid vehicles--truck-like vehicles built on a car chassis. The Lexus RX300 sport-utility vehicle is an example.

Still, auto makers are scrambling to cash in on the truck boom by increasing production. Ford, for instance, is boosting vehicle production 12% in the first quarter of 1999, mostly to meet higher demand for trucks.

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Keep on Truckin’

For the first time in more than 50 years, light trucks outsold passenger cars in November. Sales of pickups, sport-utility vehicles and minivans have been steadily increasing this decade as more Americans choose light trucks over cars.

Light-Truck Sales (in millions of units)

1998 through September: 5.52 million

What’s Hot and What’s Not

The Ford F-Series truck is the nation’s best-selling vehicle, while GM’s EV1 has yet to catch on.

Ford F-Series

Base price: $19,105 (XLT model)

GM’s EV1

Base price: $43,995

Ford F-Series

Sales: 746,111 sold or leased in 1997

GM’s EV1

Sales: 550 leased in two years