Toyota Outsells Chrysler in U.S. for First Time

U.S. auto sales hit their highest level in nearly two years in August, as bountiful incentives and an improving economy lured buyers into showrooms.

But two of Detroit’s Big Three automakers lost ground to foreign competition, as Toyota Motor Corp. outsold DaimlerChrysler’s Chrysler arm for the first time in the United States, and Ford Motor Co. reported a 13% drop in sales.

August’s seasonally adjusted annual sales rate hit 19 million vehicles, above last August’s rate of 18.6 million vehicles and the highest since the record of 21.1 million set in October 2001. After adjusting for the number of selling days, total unit sales were down 0.8% from August 2002, U.S. carmakers said Wednesday.

“We think the consumer was feeling a little better about life, and also the incentives continued in the marketplace,” said Gary Dilts, Chrysler’s senior vice president of sales.