TSX69
03-07-2005, 03:39 PM
Anemic Sales off by 1.9% (http://www.usatoday.com/money/autos/2005-03-01-february-sales_x.htm)
By Sharon Silke Carty, USA TODAY
DETROIT — This is quite a hangover.
Two months since automakers whooped it up with end-of-the-year promotions that pushed 2004 sales to 16.9 million, 2005 sales are slogging along. Overall February sales were down 1.9% from a year ago for a 16.3 million annual rate, according to Autodata.
And again, big losers were the Big 2, General Motors (GM), down 12.7%, and Ford Motor (F), down 3.0%.
FEBRUARY AUTO SALES
Sales Chg. from 2004
General Motors
305,550
-12.7%
Ford Motor
253,282
-3.0%
DaimlerChrysler
199,191
5.5%
Toyota Motor
163,059
11.1%
Honda
98,130
-7.2%
Nissan
82,412
10.1%
Hyundai
33,940
19.0%
BMW
21,516
9.8%
Mazda
20,806
2.0%
Kia
20,454
10.1%
Volkswagen
18,990
-4.9%
Source: Autodata
U.S. market share for GM, the world's largest automaker, dropped to a historic low of 24.2%. Its previous low share was 24.7% in November.
Still, GM officials say sales weren't too far off expectations. "We knew going into the year, it was going to be a challenging year," said Paul Ballew, executive director of market and industry analysis.
GM trimmed its first-quarter production schedule by 45,000 vehicles. It now plans to make 1.18 million cars and trucks in the quarter, down from last year's 1.35 million. Ford said it was cutting production by 10,000 vehicles, the second time it has tweaked production for the first quarter.
Honda, with an aging product lineup, also was dogged by slow sales, off 7.2% compared with last February's.
"It's the same old story — if it's new, it sells. If it's not new, it doesn't," said Art Spinella, president of CNW Marketing Research. "And if you put a ton of incentives on it, there's no guarantee it's going to move."
But there were winners in February, including DaimlerChrysler's (DCX) Chrysler Group. Led by the Chrysler brand, sales were up 7.5%, the 11th-consecutive month of year-over-year increases.
Overall, DaimlerChrysler sales were up 5.5%, because Mercedes-Benz sales were down 16%.
Nissan's (NSANY) new Pathfinder and Xterra SUVs helped it post its best February, with sales up 10.1%. Jed Connelly, vice president of sales and marketing for North America, said Nissan has tried to price its vehicles close to what buyers will end up paying, allowing the company to rely less on incentives.
Toyota (TM) also had its best February, with sales up 11.1%. Jim Press, executive vice president and chief operating officer, said high gas prices are affecting consumer attitudes, and Toyota's fuel-efficient vehicles "catch the public eye."
Pete Langlois, strategic analyst for the Ernst & Young Global Automotive Center, said potential buyers may be deterred by rising interest rates. "Consumers feel they can always get a good rebate, but they might be delaying their purchases in hopes of a good interest-rate environment," he said.
David Healy, an analyst with Burnham Securities, said: "Terrific sales in December depressed January sales, and it looks like that kept a lid on February sales as well. I think March is probably going to start to show some improvement as the hangover wears off."
By Sharon Silke Carty, USA TODAY
DETROIT — This is quite a hangover.
Two months since automakers whooped it up with end-of-the-year promotions that pushed 2004 sales to 16.9 million, 2005 sales are slogging along. Overall February sales were down 1.9% from a year ago for a 16.3 million annual rate, according to Autodata.
And again, big losers were the Big 2, General Motors (GM), down 12.7%, and Ford Motor (F), down 3.0%.
FEBRUARY AUTO SALES
Sales Chg. from 2004
General Motors
305,550
-12.7%
Ford Motor
253,282
-3.0%
DaimlerChrysler
199,191
5.5%
Toyota Motor
163,059
11.1%
Honda
98,130
-7.2%
Nissan
82,412
10.1%
Hyundai
33,940
19.0%
BMW
21,516
9.8%
Mazda
20,806
2.0%
Kia
20,454
10.1%
Volkswagen
18,990
-4.9%
Source: Autodata
U.S. market share for GM, the world's largest automaker, dropped to a historic low of 24.2%. Its previous low share was 24.7% in November.
Still, GM officials say sales weren't too far off expectations. "We knew going into the year, it was going to be a challenging year," said Paul Ballew, executive director of market and industry analysis.
GM trimmed its first-quarter production schedule by 45,000 vehicles. It now plans to make 1.18 million cars and trucks in the quarter, down from last year's 1.35 million. Ford said it was cutting production by 10,000 vehicles, the second time it has tweaked production for the first quarter.
Honda, with an aging product lineup, also was dogged by slow sales, off 7.2% compared with last February's.
"It's the same old story — if it's new, it sells. If it's not new, it doesn't," said Art Spinella, president of CNW Marketing Research. "And if you put a ton of incentives on it, there's no guarantee it's going to move."
But there were winners in February, including DaimlerChrysler's (DCX) Chrysler Group. Led by the Chrysler brand, sales were up 7.5%, the 11th-consecutive month of year-over-year increases.
Overall, DaimlerChrysler sales were up 5.5%, because Mercedes-Benz sales were down 16%.
Nissan's (NSANY) new Pathfinder and Xterra SUVs helped it post its best February, with sales up 10.1%. Jed Connelly, vice president of sales and marketing for North America, said Nissan has tried to price its vehicles close to what buyers will end up paying, allowing the company to rely less on incentives.
Toyota (TM) also had its best February, with sales up 11.1%. Jim Press, executive vice president and chief operating officer, said high gas prices are affecting consumer attitudes, and Toyota's fuel-efficient vehicles "catch the public eye."
Pete Langlois, strategic analyst for the Ernst & Young Global Automotive Center, said potential buyers may be deterred by rising interest rates. "Consumers feel they can always get a good rebate, but they might be delaying their purchases in hopes of a good interest-rate environment," he said.
David Healy, an analyst with Burnham Securities, said: "Terrific sales in December depressed January sales, and it looks like that kept a lid on February sales as well. I think March is probably going to start to show some improvement as the hangover wears off."