Bloomberg
Ford Motor Co., buoyed by redesigned cars and a rebound in truck demand, posted a 43 percent jump in U.S. sales in February to beat General Motors Co. in monthly deliveries for the first time since 1998.
Ford’s tally was 142,285 compared with 141,951 for GM, the automakers said today. The Dearborn, Michigan-based automaker hadn’t topped GM in domestic sales since a strike idled the biggest U.S. automaker almost 12 years ago, and the last time before that was during a 1970 walkout, based on Ford data.
“This is huge because it’s the classic rivalry like Pepsi and Coke, the Red Sox and the Yankees,” said John Wolkonowicz, an analyst at IHS Global Insight in Lexington, Massachusetts. “They’re doing it with the stuff that matters -- quality, products and reputation. It could be a turning point.”
Three hours after announcing February sales, GM created separate arms for North American sales and marketing in its second such shuffle since December. Ford’s results topped analysts’ estimates while GM’s 12 percent gain trailed projections as snowstorms damped showroom traffic.
Toyota Motor Corp. sales fell 8.7 percent to 100,027 as it struggled with global recalls that halted sales of some models. Chrysler Group LLC rose less than 1 percent to 84,449, exceeding estimates and posting its first increase since December 2007. Honda Motor Co. and Nissan Motor Co. reported gains that lagged behind a projection from industry researcher Edmunds.com.
Ford Gains
Ford said sales of its Fusion more than doubled, passing the Focus for the top spot among the automaker’s cars, and Taurus sales almost doubled. Both sedans were redesigned in the past year. Pickup and sport-utility vehicle deliveries rose.
North American production for the second quarter will increase 32 percent from a year earlier to 595,000 vehicles, Ford said. Chief Executive Officer Alan Mulally has slashed costs, developed new models and kept Ford out of bankruptcy last year.
“Ford is certainly riding momentum right now,” said Jeff Schuster of J.D. Power & Associates in Troy, Michigan. “GM is still in a state of flux, trying to settle on an image for the brands that remain and shuffling the management team.”
GM Shuffle
Today’s executive changes at GM include shifting Susan Docherty, vice president for sales, service and marketing, to handle only marketing. Steve Carlisle, most recently executive director of Southeast Asia operations, was named vice president of U.S. sales operations, the company said.
Docherty was given her previous duties on Dec. 4 when CEO Ed Whitacre shook up the leadership ranks, including the naming of engineering chief Mark Reuss as president of North American operations. Carlisle and Docherty will report to Reuss, GM said.
GM’s sales trailed the 20 percent average of 5 analysts’ estimates. The results showed the effect of GM’s plans to sell or shut four U.S. brands -- Saab, Hummer, Saturn and Pontiac -- as part of its government-backed bankruptcy last year. Those four vehicle lines plunged 86 percent to 3,102, GM said.
Deliveries for the four brands being kept, Chevrolet, Cadillac, Buick and GMC, rose 32 percent from a year earlier, GM said. Volumes more than doubled for the Buick LaCrosse sedan and Chevrolet Equinox SUV.
Chrysler, based in Auburn Hills, Michigan, beat analysts’ average projection for a decline of 18 percent, based on 5 estimates.
Asian Automakers
Deliveries for Tokyo-based Honda Motor Co. rose 13 percent to 80,671 vehicles. Nissan Motor Co. sales climbed 29 percent to 70,189, Al Castignetti, vice president of the Yokohama, Japan- based company’s U.S. sales unit, said in an interview.
Industry researcher Edmunds.com projected Honda would rise 24 percent and Nissan would climb 38 percent. Santa Monica, California-based Edmunds.com estimated a 10 percent drop for Toyota. Seoul-based Hyundai Motor Co. probably will show a 25 percent increase, according to Edmunds.com.
The seasonally adjusted annual sales rate for cars and light trucks may have reached 10.3 million, the average of 8 estimates compiled by Bloomberg. That would be a fourth straight gain from a year earlier. February 2009’s pace was 9.1 million, the lowest since 1981.
Manufacturers, dealers and investors use the annualized rate to compare monthly totals by taking into account seasonal buying patterns. February is typically among the lowest sales months of the year, while June is one of the highest. Annual U.S. sales averaged 16.8 million last decade through 2007.
Fleet Sales
Business and government buyers drove growth at GM and Ford.
While Chevrolet had a 32 percent gain, deliveries through dealers were up only 1 percent, said Detroit-based GM, which gets 70 percent of U.S. volume from Chevrolet. Ford said fleet sales rose 74 percent. Those transactions are less profitable than retail sales because of discounts for bulk purchases.
The drop for Toyota City, Japan-based Toyota was the second in a row for the world’s largest automaker, which recalled about 8 million vehicles for flaws tied to unintended acceleration and suspended U.S. sales of 8 models, including Camry and Corolla sedans, starting Jan. 26. Dealers resumed sales once repairs were made.
Snow in the eastern U.S. paralyzed car dealers and other businesses last month in cities such as Washington and Philadelphia, while Dallas had its biggest one-day accumulation in a storm that moved across Texas and the South.
“The entire market could be softer than what people thought,” said Michael Robinet, chief forecaster for CSM Worldwide Inc. in Northville, Michigan. “The weather may have had a deep impact. When you are buried in snow, buying a car is not top of mind.”
February economic data may be disrupted by the storms, making it difficult to gauge the extent of the U.S. recovery. The Conference Board’s consumer confidence index fell to the lowest level in 10 months in February, a sign that Americans may limit spending on concern that the job market remains weak.
Ford’s tally was 142,285 compared with 141,951 for GM, the automakers said today. The Dearborn, Michigan-based automaker hadn’t topped GM in domestic sales since a strike idled the biggest U.S. automaker almost 12 years ago, and the last time before that was during a 1970 walkout, based on Ford data.
“This is huge because it’s the classic rivalry like Pepsi and Coke, the Red Sox and the Yankees,” said John Wolkonowicz, an analyst at IHS Global Insight in Lexington, Massachusetts. “They’re doing it with the stuff that matters -- quality, products and reputation. It could be a turning point.”
Three hours after announcing February sales, GM created separate arms for North American sales and marketing in its second such shuffle since December. Ford’s results topped analysts’ estimates while GM’s 12 percent gain trailed projections as snowstorms damped showroom traffic.
Toyota Motor Corp. sales fell 8.7 percent to 100,027 as it struggled with global recalls that halted sales of some models. Chrysler Group LLC rose less than 1 percent to 84,449, exceeding estimates and posting its first increase since December 2007. Honda Motor Co. and Nissan Motor Co. reported gains that lagged behind a projection from industry researcher Edmunds.com.
Ford Gains
Ford said sales of its Fusion more than doubled, passing the Focus for the top spot among the automaker’s cars, and Taurus sales almost doubled. Both sedans were redesigned in the past year. Pickup and sport-utility vehicle deliveries rose.
North American production for the second quarter will increase 32 percent from a year earlier to 595,000 vehicles, Ford said. Chief Executive Officer Alan Mulally has slashed costs, developed new models and kept Ford out of bankruptcy last year.
“Ford is certainly riding momentum right now,” said Jeff Schuster of J.D. Power & Associates in Troy, Michigan. “GM is still in a state of flux, trying to settle on an image for the brands that remain and shuffling the management team.”
GM Shuffle
Today’s executive changes at GM include shifting Susan Docherty, vice president for sales, service and marketing, to handle only marketing. Steve Carlisle, most recently executive director of Southeast Asia operations, was named vice president of U.S. sales operations, the company said.
Docherty was given her previous duties on Dec. 4 when CEO Ed Whitacre shook up the leadership ranks, including the naming of engineering chief Mark Reuss as president of North American operations. Carlisle and Docherty will report to Reuss, GM said.
GM’s sales trailed the 20 percent average of 5 analysts’ estimates. The results showed the effect of GM’s plans to sell or shut four U.S. brands -- Saab, Hummer, Saturn and Pontiac -- as part of its government-backed bankruptcy last year. Those four vehicle lines plunged 86 percent to 3,102, GM said.
Deliveries for the four brands being kept, Chevrolet, Cadillac, Buick and GMC, rose 32 percent from a year earlier, GM said. Volumes more than doubled for the Buick LaCrosse sedan and Chevrolet Equinox SUV.
Chrysler, based in Auburn Hills, Michigan, beat analysts’ average projection for a decline of 18 percent, based on 5 estimates.
Asian Automakers
Deliveries for Tokyo-based Honda Motor Co. rose 13 percent to 80,671 vehicles. Nissan Motor Co. sales climbed 29 percent to 70,189, Al Castignetti, vice president of the Yokohama, Japan- based company’s U.S. sales unit, said in an interview.
Industry researcher Edmunds.com projected Honda would rise 24 percent and Nissan would climb 38 percent. Santa Monica, California-based Edmunds.com estimated a 10 percent drop for Toyota. Seoul-based Hyundai Motor Co. probably will show a 25 percent increase, according to Edmunds.com.
The seasonally adjusted annual sales rate for cars and light trucks may have reached 10.3 million, the average of 8 estimates compiled by Bloomberg. That would be a fourth straight gain from a year earlier. February 2009’s pace was 9.1 million, the lowest since 1981.
Manufacturers, dealers and investors use the annualized rate to compare monthly totals by taking into account seasonal buying patterns. February is typically among the lowest sales months of the year, while June is one of the highest. Annual U.S. sales averaged 16.8 million last decade through 2007.
Fleet Sales
Business and government buyers drove growth at GM and Ford.
While Chevrolet had a 32 percent gain, deliveries through dealers were up only 1 percent, said Detroit-based GM, which gets 70 percent of U.S. volume from Chevrolet. Ford said fleet sales rose 74 percent. Those transactions are less profitable than retail sales because of discounts for bulk purchases.
The drop for Toyota City, Japan-based Toyota was the second in a row for the world’s largest automaker, which recalled about 8 million vehicles for flaws tied to unintended acceleration and suspended U.S. sales of 8 models, including Camry and Corolla sedans, starting Jan. 26. Dealers resumed sales once repairs were made.
Snow in the eastern U.S. paralyzed car dealers and other businesses last month in cities such as Washington and Philadelphia, while Dallas had its biggest one-day accumulation in a storm that moved across Texas and the South.
“The entire market could be softer than what people thought,” said Michael Robinet, chief forecaster for CSM Worldwide Inc. in Northville, Michigan. “The weather may have had a deep impact. When you are buried in snow, buying a car is not top of mind.”
February economic data may be disrupted by the storms, making it difficult to gauge the extent of the U.S. recovery. The Conference Board’s consumer confidence index fell to the lowest level in 10 months in February, a sign that Americans may limit spending on concern that the job market remains weak.
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