Domestic sales declined by 15.5 percent in August compared with the previous year, the fifth consecutive month of double-digit declines, despite some relief in recent weeks on gas prices.Even with some of the largest discounts ever offered, automakers were unable to sell many of the pickups and sport utility vehicles clogging dealers’ lots. Meanwhile, shortages of many popular, fuel-efficient cars hurt sales of those models.
Officials at General Motors and the Ford Motor Company, however, expressed hope that the industry had stabilized.
G.M.’s chief sales analyst, Michael C. DiGiovanni, offered some hope for the industry, saying the market might be “starting to turn the corner” and that “consumers are feeling better” as gas prices recede.
“We know the rest of the year’s going to be challenging and there’s some serious issues in the credit markets, but the economy may be starting to gain some traction,” Mr. DiGiovanni said.
Sales fell 20 percent at G.M. for the month and 26 percent at Ford. Chrysler, the third Detroit automaker, said its sales were down 35 percent. Chrysler stopped leasing vehicles through its financing arm as of Aug. 1 because it was losing money on many of the deals, a move that undoubtedly drove some potential customers to rival dealerships.
Sales fell 20 percent at G.M. for the month and 26 percent at Ford. Chrysler, the third Detroit automaker, said its sales were down 35 percent. Chrysler stopped leasing vehicles through its financing arm as of Aug. 1 because it was losing money on many of the deals, a move that undoubtedly drove some potential customers to rival dealerships.
Foreign automakers fared somewhat better. Sales at Nissan Motor rose 14 percent, while sales dropped less than 10 percent for Toyota Motor and Honda, which have had trouble meeting demand for some of their smaller cars. Honda is opening a factory in Indiana this fall to increase its production of the Civic sedan, which has been among the top-selling vehicles this year.All three Japanese carmakers gained market share at the expense of the Detroit companies.
Ford’s chief economist, Ellen Hughes-Cromwick, said the automaker expected a recovery in the American industry to “take several months,” but said recent surveys of consumer confidence showed some positive signs.
Ford’s chief economist, Ellen Hughes-Cromwick, said the automaker expected a recovery in the American industry to “take several months,” but said recent surveys of consumer confidence showed some positive signs.
“The fact that it is not going down further is very constructive,” she said. “Income gains are critical, and we need the economy to recover to get a little sunlight on vehicle sales.”
G.M., Ford and Chrysler are looking forward to 2010, when they will introduce a bevy of fuel-efficient vehicles. They are spending billions to retool truck factories so they can make more small cars....
...To keep customers coming into its showrooms, G.M. on Wednesday announced an extension of its “employee pricing” sale, which began two weeks ago as part of the company’s 100th anniversary celebration, through September. G.M.’s market share last month was 24.5 percent, lower than August 2007 but the company’s highest level this year.
Mr. DiGiovanni, the G.M. analyst, said that was partly a result of the sale but also indicated that the economy had stopped worsening.
“There had to be more at work here than the employee discount for everyone,” he said.
Sales of pickup trucks and sport utility vehicles, segments that have historically generated enormous profits, have been dismal for most of the year. Through August, sales of all vehicles were down 11.2 percent across the industry, with pickups and S.U.V.’s down 19.3 percent.
Sales of pickup trucks and sport utility vehicles, segments that have historically generated enormous profits, have been dismal for most of the year. Through August, sales of all vehicles were down 11.2 percent across the industry, with pickups and S.U.V.’s down 19.3 percent.
By NICK BUNKLEY
My Response: This is a lessened learned to all automakers. in my own opinion, SUV's are out, and fuel efficient is in. No body wants to pay $80 or more every time they want to fill up there tank. Plus these trucks are gas guzzlers, only making people use more public transportation than their own cars. I doubt many people are going to buy these trucks knowing how gas is constantly on the rise.
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