U.S. Sales of Autos Drop 12%

U.S. auto sales declined 12% to 1.43 million vehicles in August, as near-record gasoline prices hurt demand. The six largest automakers all had sales drops for the first time in almost two years.

Cars and light trucks sold at an annual rate of 16.6 million in August, down from 18 million, according to Autodata Corp. Sales at General Motors Corp. fell 14% from a year earlier. Ford Motor Co.’s sales fell 13% and DaimlerChrysler’s slid 5.7%, with its Chrysler unit down 6.5%. Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co. also fell.

General Motors and Ford both said they would cut North American production in the fourth quarter.

Ford said it planned to reduce fourth-quarter North American production 7.8% to 830,000 vehicles. The planned cut is the biggest percentage reduction in a quarter since a 15% drop in the third quarter of 2003. General Motors forecast fourth-quarter production at 1.29 million vehicles, down 6.9% from 1.39 million units a year earlier.

Consumers are putting off vehicle purchases with gasoline at prices about 25% higher than at the beginning of the year. U.S. consumer confidence fell in August for the first time since February, partially because of higher fuel prices, forcing the U.S. to scale back estimates of economic growth.

Asian automakers saw their share of the U.S. market fall to 35.2% from 35.4%, excluding their European brands, Autodata said. Honda, Toyota and Nissan all declined for the first time since 2002. The combined share of General Motors, Ford and Chrysler rose to 58% from 57.9%.

Chrysler’s market share rose to 12.5% in August from 11.7% a year ago, Autodata said. General Motors’ share dropped to 28% from 28.5% and Ford declined to 17.6% from 17.7%, according to Autodata.

Nissan’s U.S. sales dropped 0.6% in August, Honda’s declined 14% and sales at Toyota, Japan’s largest automaker, declined 10%. The last time sales fell at the six largest automakers was October 2002, according to Autodata.

Automakers increased the amount they spent on incentives last month to $4,203 per vehicle from $4,027 in July, according to estimates from CNW Market Research, which tracks auto incentives. The latest figure was almost unchanged from August 2003. Incentives rose 5% from July at General Motors to $4,869. They rose 0.8% at Ford to $4,911 and 4.5% at Chrysler to $4,851, CNW said.

General Motors stock fell 10 cents to $41.21 on the New York Stock Exchange. Ford stock fell 21 cents to $13.90 and U.S.-traded shares of DaimlerChrysler rose 34 cents to $42.11, both on the NYSE.

Chrysler’s sales rose 1% adjusted for two fewer sales days in August than in the same month a year ago. General Motors sales fell 7% on that basis. Ford doesn’t adjust for sales days.