GM reports February sales unexpectedly jump 3.7%!!!
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GM Sales Climb 3.7%; Ford, Chrysler Sales Slide
GM Sales Climb 3.7%; Ford, Chrysler Sales Slide
Wall Street Journal - March 1, 2007 2:11 p.m.
Wall Street Journal - March 1, 2007 2:11 p.m.
General Motors Corp. posted a 3.7% gain in February U.S. light vehicle sales as retail sales surged 11%.
Ford Motor Co. said its February sales of cars and light trucks in the U.S. fell nearly 14%, as it slashed sales to rental-car companies by 30%. Chrysler, the U.S. unit of DaimlerChrysler AG, also reported lower sales.
The world's largest auto maker, which is cutting sales to fleet customers, posted an 18% drop in fleet sales, as part of a planned 25% reduction in sales to daily rental car companies.
GM kept its first-quarter North American production forecast unchanged at 1.1 million vehicles, and set its North America second-quarter output forecast at 1.2 million vehicles, down 5% from a year earlier.
GM's sales of cars and light trucks stood at 308,411 in February, up from 297,481 a year earlier. GM's sales of light trucks rose 7.9% to 199,509. Car sales fell 3.3% to 108,902.
In recent trading, GM shares edged up 16 cents, or 0.5%, to $32.07.
GM's sales figures followed the auto maker's announcement earlier Thursday that it will ask for more time to file its annual results for the second straight year because of accounting issues. Investors are looking to the 2006 report, which was due Thursday, to provide a glimpse of GM's restructuring progress. In late January, the company said it would delay the release of its fourth-quarter results to correct five years of reporting errors. At the time, it said it expected to post a profit for the period, lifted by record revenue.
Ford Sales Fall 14%
Ford said its February sales of cars and light trucks in the U.S. fell 14% as it slashed sales to rental-car companies by 30%. The U.S. auto maker said it sold 211,150 cars and light trucks in February, compared with 244,021 a year ago.
The Dearborn, Mich., company's passenger car sales fell 22%, while sales of trucks and sport-utility vehicles -- representing Ford's most profitable business -- were down 8.4%.
In a news release, Ford said its inventory level sat at 603,000 vehicles at the end of February, 175,000 units lower than a year ago. Ford's February sales decline follows a 19% year-over-year sales slide for January.
Ford will produce 740,000 vehicles in the first quarter, unchanged from the prior plan. For the second quarter, the company plans to produce 770,000 vehicles, down 14% from 897,000 vehicles a year ago. The lowered production outlook mainly reflects discontinued products and the planned reduction in sales to daily rental companies, Ford said.
GM and Ford have been reducing sales to rental-car fleets, which carry low profit margins, to concentrate on more lucrative sales to customers at dealerships. The move stems from an overall shift by buyers away from trucks and sport-utility vehicles toward more fuel-efficient vehicles, mostly built by Asian companies.
Chrysler Sales Decline 8.3%
Chrysler said February sales fell 8.3% to 174,506 vehicles. The company will release a breakdown of its Chrysler sales later in the day.
Chrysler, which is the focus of a strategic review that could even lead to its sale, posted total sales of 174,506 vehicles for the month, down from 190,367 a year earlier.
Chrysler consists of the Chrysler, Jeep and Dodge brands and is a heavy seller of pickups and sport-utility vehicles. The German parent company's luxury Mercedes-Benz division posted a 0.3% drop in February U.S. sales.
There were 24 selling days last month, the same number as a year ago.
Meanwhile, Honda said its U.S. sales rose 3.2% on stronger demand for its trucks. Nissan reported a 1.2% rise in U.S. sales.
Toyota Motor Corp., which will release its sales numbers shortly, could move closer to unseating Ford as the No. 2 auto maker in the U.S.
The Japanese industrial icon topped Ford in sales for January and passed its U.S. competitor twice in monthly sales during 2006. It is expected to solidify its hold on the No. 2 spot sometime this year. Tuesday, Toyota said it would build a new SUV plant in Mississippi, its eighth plant in North America.
Edmunds.com predicts Toyota sales will rise 17% from a year ago, again vaulting it over Ford in terms of U.S. market share.
Ford Motor Co. said its February sales of cars and light trucks in the U.S. fell nearly 14%, as it slashed sales to rental-car companies by 30%. Chrysler, the U.S. unit of DaimlerChrysler AG, also reported lower sales.
The world's largest auto maker, which is cutting sales to fleet customers, posted an 18% drop in fleet sales, as part of a planned 25% reduction in sales to daily rental car companies.
GM kept its first-quarter North American production forecast unchanged at 1.1 million vehicles, and set its North America second-quarter output forecast at 1.2 million vehicles, down 5% from a year earlier.
GM's sales of cars and light trucks stood at 308,411 in February, up from 297,481 a year earlier. GM's sales of light trucks rose 7.9% to 199,509. Car sales fell 3.3% to 108,902.
In recent trading, GM shares edged up 16 cents, or 0.5%, to $32.07.
GM's sales figures followed the auto maker's announcement earlier Thursday that it will ask for more time to file its annual results for the second straight year because of accounting issues. Investors are looking to the 2006 report, which was due Thursday, to provide a glimpse of GM's restructuring progress. In late January, the company said it would delay the release of its fourth-quarter results to correct five years of reporting errors. At the time, it said it expected to post a profit for the period, lifted by record revenue.
Ford Sales Fall 14%
Ford said its February sales of cars and light trucks in the U.S. fell 14% as it slashed sales to rental-car companies by 30%. The U.S. auto maker said it sold 211,150 cars and light trucks in February, compared with 244,021 a year ago.
The Dearborn, Mich., company's passenger car sales fell 22%, while sales of trucks and sport-utility vehicles -- representing Ford's most profitable business -- were down 8.4%.
In a news release, Ford said its inventory level sat at 603,000 vehicles at the end of February, 175,000 units lower than a year ago. Ford's February sales decline follows a 19% year-over-year sales slide for January.
Ford will produce 740,000 vehicles in the first quarter, unchanged from the prior plan. For the second quarter, the company plans to produce 770,000 vehicles, down 14% from 897,000 vehicles a year ago. The lowered production outlook mainly reflects discontinued products and the planned reduction in sales to daily rental companies, Ford said.
GM and Ford have been reducing sales to rental-car fleets, which carry low profit margins, to concentrate on more lucrative sales to customers at dealerships. The move stems from an overall shift by buyers away from trucks and sport-utility vehicles toward more fuel-efficient vehicles, mostly built by Asian companies.
Chrysler Sales Decline 8.3%
Chrysler said February sales fell 8.3% to 174,506 vehicles. The company will release a breakdown of its Chrysler sales later in the day.
Chrysler, which is the focus of a strategic review that could even lead to its sale, posted total sales of 174,506 vehicles for the month, down from 190,367 a year earlier.
Chrysler consists of the Chrysler, Jeep and Dodge brands and is a heavy seller of pickups and sport-utility vehicles. The German parent company's luxury Mercedes-Benz division posted a 0.3% drop in February U.S. sales.
There were 24 selling days last month, the same number as a year ago.
Meanwhile, Honda said its U.S. sales rose 3.2% on stronger demand for its trucks. Nissan reported a 1.2% rise in U.S. sales.
Toyota Motor Corp., which will release its sales numbers shortly, could move closer to unseating Ford as the No. 2 auto maker in the U.S.
The Japanese industrial icon topped Ford in sales for January and passed its U.S. competitor twice in monthly sales during 2006. It is expected to solidify its hold on the No. 2 spot sometime this year. Tuesday, Toyota said it would build a new SUV plant in Mississippi, its eighth plant in North America.
Edmunds.com predicts Toyota sales will rise 17% from a year ago, again vaulting it over Ford in terms of U.S. market share.
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Joined: Mar 2005
Posts: 757
Something just ocurred to me regarding a comparison between GM and Toyota's North American sales number. Since GM still sells nearly twice as many vehicles compared to Toyota, won't percentage increases in sales, compared to the whole, seem smaller?
I could be wrong - I'm a liberal arts major for a reason.
I could be wrong - I'm a liberal arts major for a reason.
Registered User
Joined: Mar 2001
Posts: 13,713
From: The Golden State
My monthly spin on things:
1 This time last year, Chrysler was still inflating their production even though sales weren't keeping up. A drop of 8.3% seems pretty modest considering the stockpile of vehicles they had.
2. Ford is about to unload half of it's assembly workers. Ford can probally take a far bigger hit than just 14% and actually see profits improve. I do wonder if Ford might be going overboard in dumping rental sales. 30% is nothing to take lightly.
3. GM cut rental sales by a more reasonable 11%. But there is still alot of bad news:
* Buick is down 24%
* Cadillac is down 28%
* Everything at Chevrolet is down except Aveo and Impala. Enough for a 1.8% gain.
* Pontiac is also down, but only 5.9%
Saturn and GM's trucks are carrying this month's sales increase.
* GM's trucks are up 7.4% overall
* Suburbans up 33%
* Sierra's up almost 23%
* Colorado up 19%
* Saturn is up 60%
1 This time last year, Chrysler was still inflating their production even though sales weren't keeping up. A drop of 8.3% seems pretty modest considering the stockpile of vehicles they had.
2. Ford is about to unload half of it's assembly workers. Ford can probally take a far bigger hit than just 14% and actually see profits improve. I do wonder if Ford might be going overboard in dumping rental sales. 30% is nothing to take lightly.
3. GM cut rental sales by a more reasonable 11%. But there is still alot of bad news:
* Buick is down 24%
* Cadillac is down 28%
* Everything at Chevrolet is down except Aveo and Impala. Enough for a 1.8% gain.
* Pontiac is also down, but only 5.9%
Saturn and GM's trucks are carrying this month's sales increase.
* GM's trucks are up 7.4% overall
* Suburbans up 33%
* Sierra's up almost 23%
* Colorado up 19%
* Saturn is up 60%
Registered User
Joined: Aug 1999
Posts: 2,610
From: Cincinnati, OH
Link to production numbers Guy was talking about:
http://media.corporate-ir.net/media_...eries_0207.xls
http://media.corporate-ir.net/media_...eries_0207.xls
Registered User
Joined: Sep 2001
Posts: 2,030
From: Frankfort, KY U.S.A.
Link to production numbers Guy was talking about:
http://media.corporate-ir.net/media_...eries_0207.xls
http://media.corporate-ir.net/media_...eries_0207.xls
Can someone change to a different program, I don't have Excel
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Joined: Mar 2001
Posts: 1,938
Although it's not always easy to tell from an article like this, I think you are confusing "sales" numbers with "production" numbers. Regardless of how many vehicles a manufacturer produces in a given month, when they report "sales" that should be actual end user sales.