Robert_Nashville
11-01-2006, 02:48 PM
From the Wall Street Journal;By JOHN D. STOLL November 1, 2006 2:39 p.m.
General Motors Corp. posted a 17% increase in October sales, thanks to double-digit gains in truck sales.
GM said Wednesday it sold 297,401 new cars and trucks in October. The No. 1 U.S. auto maker said its light-truck sales were fueled by demand for its full-size vehicles like its Chevy Silverado and GMC Sierra and a sharp increase in luxury sport-utility vehicle sales, including the entire Cadillac Escalade lineup.
"GM's industry-leading truck business was boosted in October by lower fuel prices -- that's one reason our trucks, SUVs and crossovers are gaining share," said Mark LaNeve, GM's North America vice president of vehicle sales, service and marketing.
Car sales were off about 2%, despite solid demand for GM's Chevrolet Impala, Pontiac G6 and Saturn Aura.
Last month, GM reported a narrower third-quarter net loss of $115 million, or 20 cents a share last month -- portrayed by GM as evidence of "significant progress." Chairman and Chief Executive Rick Wagoner has argued that GM is recovering after a $10.6 billion loss in 2005.
Ford Motor Co. said its monthly sales of cars and light trucks in the U.S. increased 8.1% from a year ago as continued gains by its lineup of passenger cars offset lackluster results for it pickups and sport-utility vehicles.
October's gain represents the second-straight positive month in terms of volume for Ford. However, Ford, along with GM, turned in dismal numbers in October 2005, when sales were hurt by high gasoline prices and the hangover effect of employee-discount-for-everyone incentive campaigns in the summer. The discounts pulled buyers into the car market who would have otherwise bought in the autumn months last year.
Chrysler, the U.S. unit of DaimlerChrysler AG, said Wednesday it posted a 3.2% decline in sales last month. It faced more difficult volume comparisons with the prior year than its domestic competitors did. GM will report its October sales data later today.
Among Asian auto makers, Toyota Motor Corp.'s U.S. sales rose 9.2% last month to 189,011 vehicles, it best October sales ever. Nissan Motor Co.'s Nissan North America Inc. saw a 3.9% increase.
There were 25 selling days for auto makers last month, compared with 26 selling days in the 2005 period.
Ford said it sold 215,985 cars and light trucks in October, compared with 199,847 a year ago. The numbers were largely in line with analysts' expectations.
Ford sold 22% more passenger cars, such as sedans and coupes, than it did in October 2005, thanks in part to newly released models. Pickup and SUV sales -- representing Ford's most profitable business -- were up 1%. The strength of the company's redesigned SUVs and a 3% uptick in F-Series pickup sales buoyed the segment's performance.
Ford, which posted a $5.8 billion loss in the third quarter, is on a mission to shrink its operation in the U.S. to deal with falling demand and changing consumer tastes. Through the end of the decade, the company plans to cut tens of thousands of jobs and close a cadre of manufacturing plants in North America to cope with a decline in market share. The company eventually sees its domestic market share falling to 14%, down from the 16% to 17% range currently.
Ford took a step toward meeting its goal in October, having sliced its inventory by 30,000 from the preceding month and by 107,000 vehicles compared to a year ago, when its backlog was already on the lean side because of the success of the employee-discount clearance campaign. Ford said its inventory level sat at 622,000 vehicles at the end of October. Ford cut a significant amount of production in the third quarter and plans to further shave output by 20% in the fourth quarter.
"We are very serious about aligning inventories with demand," Al Giombetti, president of sales and marketing at Ford and Lincoln Mercury, said in a news release. "Our dealers did an outstanding job with the 2006 model sell-down program, and we took a painful but necessary action to reduce fourth-quarter production."
Ford has been offering generous deals, including 0% financing, on many of its 2006 models. Ford spokesman Jim Cain said the company has no major incentive campaigns planned for November at this time.
Write to John D. Stoll at john.stoll@dowjones.net
General Motors Corp. posted a 17% increase in October sales, thanks to double-digit gains in truck sales.
GM said Wednesday it sold 297,401 new cars and trucks in October. The No. 1 U.S. auto maker said its light-truck sales were fueled by demand for its full-size vehicles like its Chevy Silverado and GMC Sierra and a sharp increase in luxury sport-utility vehicle sales, including the entire Cadillac Escalade lineup.
"GM's industry-leading truck business was boosted in October by lower fuel prices -- that's one reason our trucks, SUVs and crossovers are gaining share," said Mark LaNeve, GM's North America vice president of vehicle sales, service and marketing.
Car sales were off about 2%, despite solid demand for GM's Chevrolet Impala, Pontiac G6 and Saturn Aura.
Last month, GM reported a narrower third-quarter net loss of $115 million, or 20 cents a share last month -- portrayed by GM as evidence of "significant progress." Chairman and Chief Executive Rick Wagoner has argued that GM is recovering after a $10.6 billion loss in 2005.
Ford Motor Co. said its monthly sales of cars and light trucks in the U.S. increased 8.1% from a year ago as continued gains by its lineup of passenger cars offset lackluster results for it pickups and sport-utility vehicles.
October's gain represents the second-straight positive month in terms of volume for Ford. However, Ford, along with GM, turned in dismal numbers in October 2005, when sales were hurt by high gasoline prices and the hangover effect of employee-discount-for-everyone incentive campaigns in the summer. The discounts pulled buyers into the car market who would have otherwise bought in the autumn months last year.
Chrysler, the U.S. unit of DaimlerChrysler AG, said Wednesday it posted a 3.2% decline in sales last month. It faced more difficult volume comparisons with the prior year than its domestic competitors did. GM will report its October sales data later today.
Among Asian auto makers, Toyota Motor Corp.'s U.S. sales rose 9.2% last month to 189,011 vehicles, it best October sales ever. Nissan Motor Co.'s Nissan North America Inc. saw a 3.9% increase.
There were 25 selling days for auto makers last month, compared with 26 selling days in the 2005 period.
Ford said it sold 215,985 cars and light trucks in October, compared with 199,847 a year ago. The numbers were largely in line with analysts' expectations.
Ford sold 22% more passenger cars, such as sedans and coupes, than it did in October 2005, thanks in part to newly released models. Pickup and SUV sales -- representing Ford's most profitable business -- were up 1%. The strength of the company's redesigned SUVs and a 3% uptick in F-Series pickup sales buoyed the segment's performance.
Ford, which posted a $5.8 billion loss in the third quarter, is on a mission to shrink its operation in the U.S. to deal with falling demand and changing consumer tastes. Through the end of the decade, the company plans to cut tens of thousands of jobs and close a cadre of manufacturing plants in North America to cope with a decline in market share. The company eventually sees its domestic market share falling to 14%, down from the 16% to 17% range currently.
Ford took a step toward meeting its goal in October, having sliced its inventory by 30,000 from the preceding month and by 107,000 vehicles compared to a year ago, when its backlog was already on the lean side because of the success of the employee-discount clearance campaign. Ford said its inventory level sat at 622,000 vehicles at the end of October. Ford cut a significant amount of production in the third quarter and plans to further shave output by 20% in the fourth quarter.
"We are very serious about aligning inventories with demand," Al Giombetti, president of sales and marketing at Ford and Lincoln Mercury, said in a news release. "Our dealers did an outstanding job with the 2006 model sell-down program, and we took a painful but necessary action to reduce fourth-quarter production."
Ford has been offering generous deals, including 0% financing, on many of its 2006 models. Ford spokesman Jim Cain said the company has no major incentive campaigns planned for November at this time.
Write to John D. Stoll at john.stoll@dowjones.net