 US auto sales plummet to 15-year low
(China Daily)
Updated: 2008-07-03 07:58
US auto sales plunged in June to a 15-year low, but a month-end clearance sale helped General Motors Corp retain its No 1 spot and steer clear of the wipeout many had feared, sending its shares higher. Record gas prices and declining trade-in values for big trucks and SUVs hit truck sales hard while major automakers, including Toyota Motor Corp, struggled to keep up with demand for some popular smaller cars and hybrids. GM was the industry's main surprise after a sale featuring zero percent financing for six years allowed the US automaker to avoid losing sales leadership in the month to Toyota. In a reversal of recent trends, Toyota trailed GM in June with a 21-percent sales decline, reflecting a 31-percent drop in sales of its trucks like the Tundra pickup. Equally damaging, sales of Toyota's hybrids including the market-leading Prius hybrid dropped 27 percent as dealer inventory ran short of demand. The Japanese automaker sees US vehicle sales hitting bottom this year, with a modest recovery in 2009, and a substantial rebound in US auto sales in 2010 and beyond. "GM was better than expected, and it looks like Toyota missed a big opportunity in the month," said Jesse Toprak, an analyst with industry-tracking website Edmunds.com. Ford Motor Co sales were down 28 percent, while Chrysler LLC sales fell 36 percent, the weakest result in the industry. Now controlled by Cerberus Capital Management, the privately held automaker relies on light trucks for almost 70 percent of its sales. By contrast, Honda Motor Co, which boasts the most fuel-efficient vehicle line-up among major automakers, bucked the downturn and posted a 1 percent sales gain. Sales for Nissan Motor Co dropped 18 percent.
The sales rate for light vehicles dropped to 13.6 million units on an annualized and seasonally adjusted basis, down from 15.7 million a year earlier, according to tracking firm Autodata Corp. It was the weakest month since August 1993. Most analysts and major automakers now expect full-year US sales to end up near 15 million units, down from 16.15 million in 2007 because of the devastated US housing market, high gas prices and weak consumer confidence. GM sales in spotlight On the adjusted basis tracked by Wall Street analysts and investors, GM's sales were down 8 percent. Analysts, on average, had expected a decline of more than 15 percent, according to a compilation of forecasts. June had three fewer sales days than the same month a year earlier, leading to a difference of about 10 percentage points between adjusted and non-adjusted figures. GM shares, which touched a 54-year-low on Monday and have been trending lower for two months, rose as much as 15 percent on the June sales figures, pulling the broader US equity market higher. Agencies (China Daily 07/03/2008 page15) |
