Sales show bumpy ride for automakers in U.S.
Automakers reported mixed U.S. sales results for November on Monday, with some new or more fuel-efficient models performing well despite consumer malaise over high gasoline prices and the weak economy.
But even with rising sales of small cars and crossover vehicles, the industry is predicting things will get worse in 2008. General Motors Corp. said Monday that it was cutting scheduled first-quarter production by 11%, while Ford Motor Co. said it would make a 7% cut. Ford’s top U.S. sales analyst, George Pipas, said the automaker was predicting sales would be at their slowest pace in a decade in the first half of 2008.
Shares of automakers fell. GM dropped $1.22, or 4%, to $28.61, and Ford declined 26 cents, or 3.5%, to $7.25. Toyota Motor Corp.’s U.S. shares fell $1.53, or 1.4%, to $110.92, while those of Nissan Motor Co. slipped 23 cents, or 1%, to $22.67 and Honda Motor Co. dropped 92 cents, or 2.7%, to $33.49.
November sales fell 2% industrywide, according to Autodata Corp. Car sales were up 6% but sales of trucks and sport utility vehicles fell 7%.
GM, the biggest automaker by U.S. sales, said its November sales dropped 11%, hurt by falling demand for trucks as well as cuts in sales to low-profit rental car fleets, while Chrysler said sales fell 2%. Ford and Toyota both reported flat sales for the month. Honda’s sales were up 5%, while Nissan’s sales rose 6%.
“Rising fuel prices and sliding home values delivered a one-two punch this month,” said Jim Lentz, president of Toyota’s U.S. sales arm. “But the industry’s not down for the count. Demand for fresh, more fuel-efficient products continues to show strength.”
GM’s November truck sales fell 15%, a casualty of the slowing pace of new home construction, while car sales declined 4%. GM said it cut sales to low-margin rental fleets by 29% compared with last November. GM’s sales were down 6% for the first 11 months of the year.
Mark LaNeve, GM’s vice president of North American sales, service and marketing, said GM wasn’t competitive enough on its incentive spending for 2008 model year pickup trucks. He said the company wanted to remain disciplined about incentives but could ramp up spending. Edmunds.com, the vehicle information website, said GM spent an average of $3,136 per vehicle on incentives in November, lower than Ford and Chrysler but above its Asian rivals.
“We will make sure we vigorously defend our truck position,” LaNeve said.
Ford’s November results ended a yearlong string of losses. Every other month of this year, Ford’s sales had compared badly to 2006, when it was still selling thousands of its old Taurus sedans to rental fleets. But Oct. 31 marked one year since the end of production of that sedan.
Ford’s Pipas said the automaker was on track to cut rental-fleet sales by 143,000 in 2007, or more than 30%. Ford cut rental-fleet sales by 6% in November and plans to continue reducing it in 2008, Pipas said. Sales to more profitable government and commercial fleets were up 25% for the month.
Ford said its car sales fell 2% but truck sales rose 2%, largely on the strength of the Ford Escape small SUV and Ford Edge crossover. Sales of the newly redesigned Ford Focus jumped 18%. Ford’s sales dropped 12% for the first 11 months of the year.
Toyota continued its drive to overtake Ford this year as the No. 2 automaker by sales, outselling Ford by nearly 15,000 vehicles. Toyota’s sales were flat for the month compared with last November, with a 4% increase in car sales -- including a 109% jump for the hybrid Prius -- offset by a 5% drop in sales of trucks and SUVs. Toyota’s sales have increased 4% for the year.
Chrysler’s car sales shot up 41%, led by the new Sebring convertible as well as the Dodge Charger and Avenger. Those sedans helped lift Dodge’s car sales by 75% for the month, Chrysler said. But Chrysler’s truck sales were down 13%, and the company’s sales were off 3% for the year.
Honda’s car sales rocketed up nearly 20% on the strength of the new Accord sedan and the subcompact Fit, which saw sales double from last November. But the automaker’s truck sales fell 11%. Honda’s sales rose 3% for the first 11 months of the year.
Nissan said its sales rose largely on the strength of the new Rogue crossover and the Versa subcompact, which saw sales surge 67%. Nissan’s car sales increased 11%, but truck sales were flat. Nissan’s sales rose 6% for the January-November period.
