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03-03-2003, 10:09 PM
General Motors U.S. Feb. Sales Drop; Ford's Are Flat
By Joe Miller and Bill Koenig / Bloomberg News
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Detroit, March 3 -- General Motors Corp., the world's largest automaker, led a decline in U.S vehicle sales last month, as the heaviest Northeast snowfalls in seven years and the threat of war in Iraq kept shoppers out of showrooms.
Sales declined 19 percent at General Motors and 4.5 percent at DaimlerChrysler AG's Chrysler. Ford Motor Co., the second-largest carmaker, sold about 200 fewer autos. General Motors said today it will cut second-quarter production in North America by 10 percent.
The monthly decrease is the industry's second straight. Analysts said rebates and low-interest loans aren't working as well as at the end of last year, when General Motors had record December sales. Automakers spent $3,224 per vehicle on incentives such as no- interest loans and rebates in February, up 9.8 percent from January, according to CNW Marketing Research.
"The promotions were in full force but the effectiveness wasn't there," said Dan Poole, vice president of equity research a National City Corp., which manages $23 billion, including Ford and General Motors shares. "It was as if the industry was pushing on a string."
General Motors' sales of cars and light trucks dropped to 333,572 in February from 411,111 in the same month of 2002. Ford's dropped less than 1 percent to 268,196 vehicles, and Chrysler's declined to 170,614 vehicles from 178,642.
Discounts the Key
General Motors spent $3,977 per vehicle on incentives last month, up 0.4 percent from January, CNW estimates. Ford spent $3,543, up 1.3 percent, and Chrysler offered $3,283, a 7.4 percent increase, CNW said.
Shares of General Motors dropped 60 cents to $33.17 at 3:53 p.m. in New York Stock Exchange composite trading. Ford stock fell 29 cents to $8.03, and DaimlerChrysler's U.S. shares fell 3 cents to $30.54.
At Ford, a 6 percent drop in retail sales for the month was offset by a 19 percent increase in sales of the Ford Taurus and Mustang cars to fleet customers such as rental car companies, said George Pipas, a sales analyst for the automaker. Fleet customers represented 31 percent of Ford's sales in February, compared with 26 percent in February 2002.
Pipas said Ford plans to produce fewer cars and trucks in the second quarter. He declined to provide specific figures. Ford produced about 1.18 million vehicles in North America during last year's second quarter.
General Motors said it will cut North American production in the second quarter by 10 percent to 1.39 million units after a 20 percent drop in retail sales in February. Fleet sales for the month were about the same as February 2002, said Paul Ballew, director of market and industry analysis for General Motors.
Toyota, Honda, Nissan
Sales at Japan's Toyota Motor Corp., which ranks fourth in the U.S., dropped 1.1 percent to 124,683 from 126,092. Honda Motor Co., the fifth-biggest U.S. automaker, posted a 14 percent gain in sales to 98,809, led by the increased popularity of the Honda Accord and Civic, and rising demand for Acura MDX sport-utility vehicles.
Nissan Motor Co.'s U.S. sales fell 12 percent in February to 51,225, partially because the company offered less generous incentives than rivals, Jed Connelly, Nissan's U.S. senior president, said in an interview. Nissan, the sixth-biggest seller of autos in the U.S., is 44.3 percent-owned by France's Renault SA.
Among specific models at Ford, sales of F-Series pickup trucks, the top-selling line of vehicles in the U.S., fell 6.5 percent to 59,278. Sales of Explorer sport-utility vehicles fell 7.1 percent to 27,177.
Taurus Up, Grand Am Down
Sales of Taurus sedans rose 31 percent to 30,871, while sales of the Focus small car rose 14 percent to 18,384. Sales of the Escape small sport-utility vehicle rose 28 percent to 11,695.
At General Motors, sales of the Chevrolet Silverado pickup truck fell 29 percent to 44,172 while sales of Chevrolet Cavalier cars declined 11 percent to 17,191 and Pontiac Grand Am fell 29 percent to 10,268.
Among Chrysler models, sales of the PT Cruiser declined 21 percent to 10,257. The Ram pickup declined 1.4 percent to 31,791 while the Caravan minivan rose 17 percent to 22,849.
Link to the Ford media site with sales figures for each vehicle....
Sales Chart (http://media.ford.com/article_display.cfm?article_id =14547&make_id=trust)
By Joe Miller and Bill Koenig / Bloomberg News
Comment on this story
Send this story to a friend
Get Home Delivery
Detroit, March 3 -- General Motors Corp., the world's largest automaker, led a decline in U.S vehicle sales last month, as the heaviest Northeast snowfalls in seven years and the threat of war in Iraq kept shoppers out of showrooms.
Sales declined 19 percent at General Motors and 4.5 percent at DaimlerChrysler AG's Chrysler. Ford Motor Co., the second-largest carmaker, sold about 200 fewer autos. General Motors said today it will cut second-quarter production in North America by 10 percent.
The monthly decrease is the industry's second straight. Analysts said rebates and low-interest loans aren't working as well as at the end of last year, when General Motors had record December sales. Automakers spent $3,224 per vehicle on incentives such as no- interest loans and rebates in February, up 9.8 percent from January, according to CNW Marketing Research.
"The promotions were in full force but the effectiveness wasn't there," said Dan Poole, vice president of equity research a National City Corp., which manages $23 billion, including Ford and General Motors shares. "It was as if the industry was pushing on a string."
General Motors' sales of cars and light trucks dropped to 333,572 in February from 411,111 in the same month of 2002. Ford's dropped less than 1 percent to 268,196 vehicles, and Chrysler's declined to 170,614 vehicles from 178,642.
Discounts the Key
General Motors spent $3,977 per vehicle on incentives last month, up 0.4 percent from January, CNW estimates. Ford spent $3,543, up 1.3 percent, and Chrysler offered $3,283, a 7.4 percent increase, CNW said.
Shares of General Motors dropped 60 cents to $33.17 at 3:53 p.m. in New York Stock Exchange composite trading. Ford stock fell 29 cents to $8.03, and DaimlerChrysler's U.S. shares fell 3 cents to $30.54.
At Ford, a 6 percent drop in retail sales for the month was offset by a 19 percent increase in sales of the Ford Taurus and Mustang cars to fleet customers such as rental car companies, said George Pipas, a sales analyst for the automaker. Fleet customers represented 31 percent of Ford's sales in February, compared with 26 percent in February 2002.
Pipas said Ford plans to produce fewer cars and trucks in the second quarter. He declined to provide specific figures. Ford produced about 1.18 million vehicles in North America during last year's second quarter.
General Motors said it will cut North American production in the second quarter by 10 percent to 1.39 million units after a 20 percent drop in retail sales in February. Fleet sales for the month were about the same as February 2002, said Paul Ballew, director of market and industry analysis for General Motors.
Toyota, Honda, Nissan
Sales at Japan's Toyota Motor Corp., which ranks fourth in the U.S., dropped 1.1 percent to 124,683 from 126,092. Honda Motor Co., the fifth-biggest U.S. automaker, posted a 14 percent gain in sales to 98,809, led by the increased popularity of the Honda Accord and Civic, and rising demand for Acura MDX sport-utility vehicles.
Nissan Motor Co.'s U.S. sales fell 12 percent in February to 51,225, partially because the company offered less generous incentives than rivals, Jed Connelly, Nissan's U.S. senior president, said in an interview. Nissan, the sixth-biggest seller of autos in the U.S., is 44.3 percent-owned by France's Renault SA.
Among specific models at Ford, sales of F-Series pickup trucks, the top-selling line of vehicles in the U.S., fell 6.5 percent to 59,278. Sales of Explorer sport-utility vehicles fell 7.1 percent to 27,177.
Taurus Up, Grand Am Down
Sales of Taurus sedans rose 31 percent to 30,871, while sales of the Focus small car rose 14 percent to 18,384. Sales of the Escape small sport-utility vehicle rose 28 percent to 11,695.
At General Motors, sales of the Chevrolet Silverado pickup truck fell 29 percent to 44,172 while sales of Chevrolet Cavalier cars declined 11 percent to 17,191 and Pontiac Grand Am fell 29 percent to 10,268.
Among Chrysler models, sales of the PT Cruiser declined 21 percent to 10,257. The Ram pickup declined 1.4 percent to 31,791 while the Caravan minivan rose 17 percent to 22,849.
Link to the Ford media site with sales figures for each vehicle....
Sales Chart (http://media.ford.com/article_display.cfm?article_id =14547&make_id=trust)