Ford bucks Detroit slumpBut Toyota trounces Big 3 with best Sept. sales ever
Ford Motor Co. was the only Detroit automaker to post higher September sales Tuesday, breaking an eight-month losing streak, but the steamroller that is Japan's Toyota Motor Corp. did not let up as the company reported its best September sales ever.
General Motors Corp. and DaimlerChrysler AG's Chrysler Group reported declines for the month, along with most of the other Asian manufacturers. GM said it would make deeper cuts in fourth-quarter production to reduce unsold vehicle inventories.
Ford sales climbed 5.3 percent, fueled by a 31 percent gain in car sales, which offset a 6.1 percent drop for trucks and nudged Ford's U.S. market share up to 16.5 percent, from 15.9 percent for the same month last year.
"Ford is really starting to take advantage this month of some of the new products they've brought out," said David Hilton, an analyst with Capgemini in Southfield.
He credited Ford's new midsize sedans -- the Ford Fusion, Mercury Milan and Lincoln Zephyr -- for much of the gain.
But George Magliano, an auto expert with consultant Global Insight in New York, cautioned against interpreting the numbers as the start of a rebound at the struggling automaker.
"One month doesn't make a big difference," he said, even if Ford is beginning to get traction with the sedans. "Are these the saviors? I don't think we can say that."
Ford's sales are down 8.6 percent for the year. George Pipas, Ford's manager of sales analysis, acknowledged that part of September's increase was attributable to weak sales a year ago.
Still, Pipas said the automaker is "pleased with the month" and suggested the company is doing better than internal forecasts projected.
But Ford's gains paled in comparison to a 25 percent sales spike by rival Toyota, which was helped by strong demand for its lineup of fuel-efficient cars and truck sales bolstered by generous incentives.
Toyota long ago passed Chrysler as the No. 3 automaker in the United States and is quickly gaining on No. 2 Ford.
"While crossovers, hybrids and small cars continue to show strength, our SUVs and full-size trucks also posted solid gains," Jim Lentz, executive vice president of Toyota Motor Sales USA Inc., said in a statement.
Capgemini's Hilton said Toyota is doing a much better job than its competitors of satisfying and retaining customers. "Obviously, they're doing something right."
Industrywide, U.S. auto sales rose 1.9 percent last month, but are down 3.7 percent for the year. Light truck sales gained 5.4 percent in September, while demand for cars dipped 1.9 percent.
For the year, car sales are up while truck demand has waned as rising gas prices pushed consumers away from pickups and SUVs to more fuel-efficient models.
Gas prices moderated in September, but most automakers said that had little impact on consumers and expect it will take many more months of price stability to convince drivers that lower gas prices are here to stay.
GM's September sales fell 3.5 percent, with car sales off 6.8 percent and truck sales down 1.1 percent, pushing its U.S. market share to 24.4 percent, from 25.8 percent a year ago. For the year, GM sales are down 11.3 percent.
Sluggish demand is driving up GM vehicle inventories. The automaker revised its fourth-quarter production plan Tuesday and said it will cut North American output another 2 percent, or 20,000 units, to 1.1 million vehicles. Last month, GM said it would cut 150,000 units, or about 12 percent, in the quarter. GM and Chrysler also are cutting production in the last three months of the year.
Paul Ballew, GM's executive director of market and industry analysis, attributed much of the September sales drop to a 26 percent decline for daily rental fleets. GM wants to continue to reduce fleet sales, which are often unprofitable and dilute the value of an automaker's products.
"I would describe our sales results as pretty solid," Ballew said. "Our market share for (the third quarter) is about 25 percent so we have increased our market share one point from the first quarter through the third quarter. (But) the competition remains intense. We saw some very aggressive incentives on '06 models."
Some of the biggest discounts were offered by Chrysler, but they were not enough to stop a 3.8 percent decline in September sales.
Chrysler's car sales plunged 27.4 percent, while truck sales were up 4.4 percent. Its market share for the month stood at 12.5 percent, down from 13.2 percent a year ago. Chrysler sales are down 9.1 percent for the year.
"Chrysler is still struggling a bit," Hilton said, noting that a glut of older vehicles is keeping new models off dealer lots.
Chrysler said a recall of light-duty Ram pickups also hurt the company in September.
A bright spot for Chrysler was minivan sales, which soared more than 50 percent, reasserting the company's leadership of the once-lucrative segment.
"The minivan is back," said Steven Landry, Chrysler's vice president of sales and field operations, even as he acknowledged that generous incentives helped. "The dealers really got behind the sale."
Ford and Chrysler announced new incentives Tuesday.
Ford kicked off its annual "Truck Month" sales event by offering free financing for 60 months on all 2006 Ford F-150, Super Duty and Ranger pickups. Ford is also offering a $2,000 rebate or 2.9 percent financing for 60 months on 2007 truck models. F-150 customers can opt for a $1,500 rebate and 3.9 percent financing for five years.
In addition, Ford is offering zero percent financing on most other 2006 model year vehicles, but is only offering 1.9 percent financing on 2006 Fusion sedans and 2.9 percent financing on 2006 Mustang sports cars.
Chrysler is offering zero percent financing for 60 months or as much as $6,000 cash back on most 2006 Chrysler, Jeep and Dodge products, excluding the Chrysler 300, Dodge Magnum and Dodge Charger.
Both companies' incentive programs run through October.
