AUTO industry
GM, Ford U.S. sales down, Toyota up as gas prices rise
Friday, May 02, 2008
DETROIT — General Motors, Ford and Chrysler saw double-digit U.S. sales declines, but Toyota's sales edged up 3 percent in April, as high gas prices accelerated consumers' rush away from trucks and sport utility vehicles.
Weak sales were expected throughout the industry as gas prices rose to record highs. Automakers reported sales Thursday, May 1.
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Matt Aquano, of Danvers, Mass., looks at a Pontiac G6, that he is planning to purchase when he trades in his Chevy Trailblazer, at a car dealership, Thursday, May 1, 2008 in Danvers, Mass. Behind are sport utility vehicles that were traded in at the dealership. Aquano stated that he is trading in his SUV for a 4-cylinder car for better gas mileage. General Motors Corp. said its truck and SUV sales were down 27 percent, dragging down increases in car and crossover sales. GM's overall sales were down 16 percent for the month compared with last April. (AP Photo/Lisa Poole)
An enticement for a free year of gasoline with the purchase of a vehicle hangs over a row of unsold 2008 Explorers at a Ford dealership in Denver on Sunday, April 27, 2008. Ford Motor Co. said its SUV sales were down 36 percent in April compared with the same month last year. Car sales were down only 1 percent, buoyed by sales of the Ford Focus small car, which saw a 44 percent jump in sales. (AP Photo/David Zalubowski)General Motors Corp. said its truck and SUV sales were down 27 percent, dragging down increases in car and crossover sales and GM's best-ever month for hybrids. GM's overall sales were down 16 percent for the month compared with last April.
"Consumer preference is shifting and we're shifting with it," said Mark LaNeve, GM's vice president of North American sales. Sales of GM's midsize Chevrolet Malibu shot up 40 percent, but the long popular Chevrolet TrailBlazer SUV saw sales dip 73 percent.
GM said it produced 130,000 fewer vehicles in April due to an ongoing strike at supplier American Axle and Manufacturing Holdings Inc., which has affected 30 plants.
LaNeve said the production cuts didn't affect sales to individual customers because of the company's large inventory of trucks and SUVs. But LaNeve said GM cut 15,000 sales to rental and commercial fleets in April because of the strike.
Ford Motor Co. said its SUV sales were down 36 percent in April compared with the same month last year, and its overall sales were down 12 percent. Car sales were down only 1 percent, buoyed by sales of the Ford Focus small car, which saw a 44 percent jump in sales. The Focus gets 24 miles per gallon in the city and 33 on the highway. By comparison, Ford's largest SUV, the Expedition, gets 12 miles per gallon in the city and 18 on the highway.
Toyota Motor Corp. said its car sales rose 12 percent, largely on the strength of the subcompact Yaris, which saw sales rise 46 percent and the hybrid Prius, which was up 54 percent. Toyota's truck and SUV sales dropped 8 percent.
Chrysler LLC said sales fell 23 percent, with car sales down 19 percent and truck and SUV sales down 25 percent. The Jeep Commander SUV saw sales plummet 49 percent. Steven Landry, Chrysler's executive vice president of North American sales, said that was partly due to a 33 percent drop in low-profit fleet sales. Ford and GM cut fleet sales as well.
