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Here's to all you naysayers and GM-haters!
The Phoenix is rising...
GM gains surprise analysts while Toyota posts rare decline
By Shawn Langlois, MarketWatch
Last Update: 5:41 PM ET Sep 4, 2007
Last Update: 5:41 PM ET Sep 4, 2007
SAN FRANCISCO (MarketWatch) -- A sluggish economy, volatile stock market and eroding consumer confidence didn't dent U.S. auto sales in August nearly as badly as feared.
GM posted a surprisingly strong 6.1% increase in car and light truck sales in August, nudging the seasonally adjusted annual rate of sales to 16.3 million, according to Autodata, easily topping Thomson Financial estimates of 15.9 million.
The data raise questions about whether the industry has reached a turning point, or whether GM's upbeat report and Ford's rosy outlook will succumb to increasingly harsh economic realities -- realities that last month knocked seemingly invincible Toyota
"The bottom line for us right now is the industry is clearly feeling the effects of slower macroeconomic growth, higher gas prices and the housing correction," GM sales analyst Paul Ballew said in a conference call, adding that these headwinds will likely be felt into 2008.
Ford was the first to report and gave an early glimpse of what was shaping up to be the worst stretch for the automotive industry in almost a decade, reporting a 14.4% decline, slightly worse than the 13.2% drop analysts had expected.
Ford was the first to report and gave an early glimpse of what was shaping up to be the worst stretch for the automotive industry in almost a decade, reporting a 14.4% decline, slightly worse than the 13.2% drop analysts had expected.
Chrysler LLC, in its first monthly sales report since separating from DaimlerChrysler posted a 6% decline, also mostly in line with forecasts.
Ford takes biggest lumps
Ford takes biggest lumps
Ford posted sales of 218,332 vehicles last month, down from 255,112 a year ago, with a 33.7% drop on the car side leading the retreat. Rental sales fell 44% as part of the company's plans to curtail the less-profitable business.
Truck sales fell 2.4%, with the flagship F-Series pickup showing a 9.9% decline.
Truck sales fell 2.4%, with the flagship F-Series pickup showing a 9.9% decline.
An 82% jump in sales of Ford, Lincoln and Mercury's all-new and redesigned crossover vehicle provided a silver lining, the company said.
In the luxury division, which is currently being shopped around, Land Rover sales surged 32.2% while Jaguar and Volvo both logged double-digit declines.
In the luxury division, which is currently being shopped around, Land Rover sales surged 32.2% while Jaguar and Volvo both logged double-digit declines.
Ford actually raised its fourth-quarter production targets by 6% from its year-ago output to 640,000 cars and trucks at a time when cutbacks seem to be the norm. The company left third-quarter production plans unchanged at 640,000 vehicles.
"The vehicle buying environment has been softening over the course of this year as consumers have rebalanced their spending patterns in light of uncertainty about future economic and financial conditions," Ford economist Ellen Hughes-Cromwick said.
Chrysler said it sold 168,203 cars and trucks in August, down from 179,165 a year ago. Car sales rose 18% to 41,221, boosted by strong results from the Sebring sedan.
Chrysler truck sales, however, dropped 12%.
GM posted a 6.1% increase in light vehicle sales to 385,529 cars and trucks from 363,521 a year earlier. Analysts, on average, were looking for a decline of about 4%, according to Thomson Financial. Total sales, including heavy trucks, rose 5.3% to 388,168.
GM posted a 6.1% increase in light vehicle sales to 385,529 cars and trucks from 363,521 a year earlier. Analysts, on average, were looking for a decline of about 4%, according to Thomson Financial. Total sales, including heavy trucks, rose 5.3% to 388,168.
Car sales fell 7.8% from a year ago while light trucks rose 16.5% thanks in part to strong performances by the Chevy Silverado and GMC Sierra pickups. 
Still, GM cut its third-quarter production forecast by 2% to 1.05 million vehicles. For the fourth quarter, GM said it is looking to build 1 million cars and trucks.
Toyota sales slip; Honda gains
Toyota reported a 2.8% decrease to 233,471 from 240,178 a year earlier, which the company attributed to reduced credit availability and lower consumer confidence.
Toyota said passenger car sales at its namesake division fell 8% to 115,718 from 125,768 a year earlier. Overall, Toyota division vehicle sales declined 3.7% to 201,272 from 209,104 in the year-ago period.
Lexus passenger car sales rose 7.7% to 19,789 vehicles from 18,376 a year earlier. Light-truck sales rose 2% to 97,964 from 96,034 a year earlier.
Lexus passenger car sales rose 7.7% to 19,789 vehicles from 18,376 a year earlier. Light-truck sales rose 2% to 97,964 from 96,034 a year earlier.
Separately, Honda managed to report a 4.7% gain to 158,342 vehicles from 151,253 last year.
Car sales increased 11.7% to 91,448 from 81,868, while truck sales fell 3.6% to 66,894 from 69,385. Honda division sales totaled 141,906 in August, up 6.7% from 132,990, a year ago. Sales at the Acura division fell 10% to 16,436
Car sales increased 11.7% to 91,448 from 81,868, while truck sales fell 3.6% to 66,894 from 69,385. Honda division sales totaled 141,906 in August, up 6.7% from 132,990, a year ago. Sales at the Acura division fell 10% to 16,436
2 comments:
With news today that VW / Audi are packing up and moving to the east coast I'd say ANY good news in the auto-sector is REALLY good news.
--Nick
www.RightMichigan.com
The Autoextremist is spot on here...
Jennifer Granholm. The Hand-Wringer-in-Chief for the State of Michigan, Gov. Jennifer Granholm, insists that nothing has been decided yet and that she still has a shot at keeping Volkswagen AG (along with Audi and Bentley) from moving its North American headquarters from Auburn Hills, MI, to the Arlington, VA, area (the announcement is rumored to be coming tomorrow).
Get a grip, Jenn. This issue was decided long ago. As a matter of fact, it's highly questionable why VW-Audi even encamped here to begin with. They had no connection to this area, and they made it clear once here that metro Detroit was never quite what they had in mind.
And when Detroit's problems - and more important the perception of Detroit's problems - started dominating stories in the media, VW couldn't find another place to go fast enough.
So you're several months and a hundred million dollars or so short, Jenn. You always seem to be chasing these problems after the fact instead of getting out front of these issues early on.
When it comes right down to it, Jenn, good leadership is 90 percent anticipation - and you have proved convincingly time and time again that you absolutely suck at it. As we love to say around here, Not Good.
http://www.autoextremist.com/index.shtml
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