CHICAGO: Toyota and Honda saw their US sales drop in July as the Big Three US automakers posted modest gains in figures released Tuesday thanks to popular new vehicles.
“It comes down to product: Ford and GM have the product and now Chrysler is getting into the game,” said Michelle Krebs, a senior analyst with automotive website Edmunds.com.
“It’s an interesting change because it was always the Japanese that had faster cycle times of their products,” she said.
The industry had been supported earlier this year by fleet sales to governments and businesses, but fleet demand is slackening and retail sales are still weak, she explained.
“We’re seeing a teensy bit of consumers tiptoeing back into the showrooms but certainly not a stampede and that’s what’s needed for a robust recovery,” Krebs told AFP.
Total industry sales were nonetheless up 5.1 percent in July to 1.05 million vehicles or a seasonally adjusted annualized rate of 11.98 million, according to Autodata.
Light vehicle sales were up 14.7 percent at 5.81 million vehicles in the first seven months of the year.
Toyota, which has seen its once-stellar reputation tarnished by a series of mass recalls, posted a 3.2 percent drop to 169,224 vehicles in July while year-to-date sales were up 7.5 percent at 1.02 million vehicles.
The automaker noted that the monthly comparison was impacted by the fact that its sales in July 2009 had been given major boost by the government-funded Cash for Clunkers trade-in program.
Honda, which also benefited from Cash for Clunkers, saw July sales fall two percent to 112,437 vehicles while year-to-date sales were up 9.4 percent at 706,346.
General Motors reported a 5.4 percent increase to 199,692 vehicles in July, the 10th consecutive month of sales gains following a government-financed restructuring under bankruptcy protection.
“This month concludes our first full year as a company and in that year a lot has happened,” said Don Johnson, vice president for US sales.
“We moved from eight brands to four, we’re managing our inventory … and we’re managing our incentives prudently,” he told reporters in a conference call.
“I believe our plan is working and we’re making very good progress.”
Sales of GM’s remaining core brands — Buick, Cadillac, Chevrolet and GMC — rose 25 percent to 199,432 vehicles in July and were up 31 percent for the year to date.
July was also the seventh consecutive month that sales of those core brands grew by more than 20 percent.
Total sales for the year to date were up 11.9 percent at 1.3 million vehicles.
Johnson cautioned that while GM is “optimistic” about future sales and is maintaining its 2010 forecast of total industry sales of 11.5 to 12 million vehicles, “the continued recent economic news still points to a slow recovery.”
Ford reported a 3.1 percent increase in total sales to 170,411 vehicles while sales of its three remaining brands — Ford, Lincoln and Mercury — rose five percent.
Ford, which managed to survive the collapse of auto sales following the financial crisis and economic downturn without government aid, said it has now managed to increase its share of the US retail market for 21 of the past 22 months.
Sales for the year to date were up 24 percent at 1.12 million vehicles.
“Customers are rewarding Ford for providing the performance they want and the fuel economy they need,” said Ken Czubay, Ford vice president for US sales and marketing
“New classleading powertrains are the ‘secret weapon’ in every new product we are bringing to market.”
The Ford figures included sales for Swedish brand Volvo, whose sale to Chinese car maker Geely Holdings was completed earlier this week.
Chrysler, which has been struggling since it emerged from a government-funded bankruptcy last year, posted a five percent increase in July sales to 93,33.
Sales for the year-to-date were up 11 percent at 620,532.
July marked Chrysler’s fourth consecutive month of gains and the automaker said it expected a big boost in the coming months as it introduced a “product onslaught.”
“We’re gaining some real traction with the all-new Jeep Grand Cherokee, and we look forward to the same when we revamp the remaining 75 percent of our nameplates by year end,” said Fred Diaz, who heads Chrysler’s Ram Truck brand and manages all US sales.
