Automobile Sales Slow in January
Auto sales slowed in January from the breakneck pace set a month earlier, but some automakers used aggressive consumer incentives and hot products to eke out impressive gains.
January’s seasonally adjusted annual sales rate was about 16.2 million units, well off December’s 18.3-million rate but higher than the 15.8-million rate set in January 2002.
Many analysts had feared that January’s sales numbers would show a payback for December, when Detroit’s Big Three automakers boosted sales using a blizzard of incentives averaging a record high of about $3,000 per vehicle. But that appeared not to be the case.
General Motors Corp., the world’s leading automaker, said its January U.S. sales fell 2% from a year ago to 293,086 new cars and light trucks. Analysts had expected a sales drop of as much as 10%, but late-month incentives bolstered GM’s sales.
January sales at the Chrysler side of DaimlerChrysler, meanwhile, were off 12% at 129,222 vehicles. The German-American automaker said it was raising some incentives to spur better results.
Bucking the trend of its crosstown rivals, Ford Motor Co., the No. 2 automaker, said its January sales rose a stronger-than-expected 4.1%.
Ford, which attracted customers with cash rebates, interest-free loans and other discounts, said January sales totaled 242,555 vehicles, including its foreign brands -- Jaguar, Land Rover and Volvo -- and some heavy trucks.
Among Asian automakers, Japanese leader Toyota Motor Corp. said its January sales slipped 5.7% from a strong performance a year ago. But Toyota’s cars outsold their counterparts from Ford and Chevrolet, the perennial bestsellers, giving Toyota No. 1 bragging rights.
Honda Motor Co. said its January sales rose 6% to 90,003 vehicles, a record for the month. Honda said its results were driven by a surge in light-truck sales and strong demand for the Acura MDX luxury sport utility vehicle and the new Element and Pilot SUVs.
Nissan Motor Co. said its U.S. sales, including its Infiniti division, were up 1.2%. Kia Motors Co. led Asian gainers with an 11.8% jump in its U.S. sales.
Volkswagen said its U.S. sales fell 16.6% to 17,811 vehicles in January, including its Audi brand. Apart from weak market conditions, VW blamed its decision not to match deep discounts from other automakers.
