Detroit's Fourth of July Dud
Jump in June Auto Sales Passes up the Motor City
JIM JELTER / MarketWatch 3jul2007
|
Mindfully.org
note:
Just like the period of high prices and lines in the 1970's, US car
manufacturer executives are not comprehending the most basic concepts of
their jobs. Somebody wake them all up before they are just another blip in
the past. But drivers need to wake up as well — to the fact that we have
nearly run out of oil. Stop driving. Ride a bicycle and walk, or take
public transportation. Demand that tax money stop going to highways and be
put instead into decent and efficient public transport. If the public ever
got that they'd not go back to the personal car. Cars are far too
expensive and far too miserable a mode of transportation. But hey, maybe
you just can't resist being part of the All-American lie on the 4th
of July.
The base fuel economy for any car should start at 100 miles-per-gallon and
go up significantly from there. And that base car should last about 5
times longer than the best can do right now. Detroit we don't want your
poorly designed junk — period. |
SAN FRANCISCO — As the rest of the nation heads off to catch Fourth of July
fireworks, jubilation over record sales in the auto industry is likely to be
muted in Detroit.
Automakers rolled out their June U.S. sales stats Tuesday, and once again the
home team watched more market share slip away to Japanese manufacturers.
Sales of cars and light trucks at General Motors Corp. fell a whopping 21%
from a year ago, way worse than most analysts expected, while Ford Motor Co.
sales dropped 8%.
What's ailing Detroit is summed up in a tired refrain of crushing labor,
pension and health-care costs and an executive culture that venerates its past,
while failing to turn out products people want to buy.
What people want right now is better mileage.
July marks the peak of the summer-driving season. While the average
nationwide price of regular gasoline is down from the all-time-high of $3.23 a
gallon hit in May, it's still stubbornly high at $2.95. That's three cents
higher than a year ago, when the motoring public was still willing to believe
prices might come down again.
That hope is now long gone, and it's killing Detroit's product lineup, still
heavily weighted toward pickups and SUVs.
Yes, Detroit has embraced the "crossover" SUV, a scaled-down
version of the truck-based behemoths popular a decade ago when gas was cheap.
Yes, Detroit has developed its own hybrids, all installed on SUV or crossover
platforms.
But look at the numbers. Toyota sold 27,382 hybrids in the United States last
month, outpacing Ford's hybrid sales by 11 to 1.
Perhaps more impressive are the inroads Toyota's tiny Yaris is making -- a
car that absolutely defies the Detroit mind-set when it comes to gauging the
domestic marketplace. Yaris sales hit 9,155 in June, up 28% from a year ago,
compared with 5,615 of GM's Aveo, its nearest U.S. competitor in size and price,
which was down 27% from June 2006.
These days, it's the little things that count.
source:
3jul2007
Big 3 Serve up Steep U.S. Sales Drop in June
Domestic-built vehicle sales fall to 2nd lowest level in 14
years
SHAWN LANGLOIS / MarketWatch 3jul2007
SAN FRANCISCO — Sales of North American-built vehicles sank to the second
lowest level in 14 years in June, as the U.S. Big Three automakers continued to
lose market share to foreign brands.
Light truck sales continued to fall, hitting the lowest level since October
2005.
General Motors Corp. posted a 21.3% plunge in June U.S. light vehicle sales,
placing the blame on a planned move away from rental car sales as well as a
tough industry climate and aggressive promotions by rivals, the company
announced Tuesday.
Ford Motor Co. also felt the pinch of lower fleet sales during the month,
while a huge surge in car sales couldn't keep DaimlerChrysler AG from reporting
a decline.
At the same time, Japanese competitors Toyota Motor Corp. and Nissan Motors
as expected, outshined the U.S. manufacturers once again, as both bit off more
market share with double-digit gains.
Overall, the total industry sales rate came in at a seasonally adjusted
annual rate of 15.6 million vehicles, the lowest in 20 months and severely
lagging behind Thomson First Call estimates of about 16.5 million. There was one
extra selling day in June 2007 than a year earlier.
Truck sales are down 6% compared with a year ago, despite a 13% increase in
imported truck sales.
Sales of North American-built vehicles fell 4.5% compared with May to 11.6
million annual units, the second lowest monthly sales pace in 14 years,
according to an analysis by AutoData Corp.
"As we look at the results coming in, the performance is capping off a
second quarter for the industry that I think can best be described as a bit
underperforming," Paul Ballew, GM's top sales analyst, said in a conference
call. "We're dealing with the twofold impact of gas prices and the housing
correction that is occurring in a couple of key states."
GM said it sold 320,668 cars and light trucks during the month, down from
407,513 a year earlier. Unadjusted for the extra selling day, car sales fell
19.3% to 138,351 while light truck sales dropped 22.8%.
Analysts polled by Thomson Financial were looking for a decline of about 8%
at GM, on average.
"Our retail performance for the month was also below the solid running
rate we've experienced for the first half of the year, which we attribute to a
soft industry and lower incentive spending than our competitors," Mark
LaNeve, GM's head of sales and marketing, said in a release.
Ford, DaimlerChrysler pull back
A dip in car sales overshadowed improved results on the truck side at Ford,
as the Dearborn, Mich.-based company cut its rental-car business by 39% from a
year ago.
Ford posted an 8.1% decline in June U.S. sales to 247,599 cars and trucks.
Sales on the car side fell 24.6% to 81,087. Truck sales gained 2.9% to 166,512.
Sales of its F-Series pickup slipped fractionally, but have fallen more than
11% for the first half of the year compared with 2006, as the segment grows
increasingly crowded with new offerings from GM and Toyota.
In the luxury division, Jaguar continued its tailspin with a 34.7% drop,
while Volvo posted an 11.9% fall. Land Rover sales rose 8.1%, thanks mainly to
the all-new LR2 crossover.
Over at DaimlerChrysler, with its truck and SUV-heavy lineup succumbing to
mounting competition and the lofty gasoline prices, monthly unit sales fell 1.8%
to 202,936.
The Chrysler side, the bulk of which is in the process of being sold to
Cerberus Capital Management, handed in a 1.4% retreat to 183,347 vehicles.
source:
3jul2007
Detroit's Big Three
Post Sales Declines in the U.S.
JUDY LAM and JOHN STOLL / Wall Street Journal 4jul2007
Major Detroit auto makers reported weakness in June U.S. sales despite a
flood of new sales incentives intended to overcome market pressures created by
high gasoline prices and persistent weakness in the U.S. housing market.
General Motors Corp.'s results were particularly weak, with June sales down
21% from a year ago amid weaker retail sales and continued reduction in sales to
rental-car fleets. The company's shares fell as much as 4.8% after hours
following a shortened holiday trading session.
Ford Motor Co. and DaimlerChrysler AG's Chrysler Group posted more modest
declines for the month. Unlike its rival GM, Ford's shortfall was entirely due
to a decline in sales to fleet customers, notably rental-car companies.
Japanese auto makers defied the downturn, however, with Toyota Motor Corp.,
Honda Motor Co. and Nissan Motor Co. posting double-digit increases as customers
flocked to their fuel-efficient cars and responded to their heavy incentives.
GM, which cut daily rental sales by 22% this June, said sales decreased amid
a tough comparison to a year ago. "Our retail performance for the month was
also below the solid running rate we've experienced for the first half of the
year, which we attribute to a soft industry and lower incentive spending than
our competitors," said Mark LaNeve, vice president, GM North American
Sales, Service and Marketing.
For the past 18 months, GM has been working to lessen its reliance on
incentives, such as discounts and low financing programs, in order to boost its
profitability and improve the resale value of its new vehicles. But GM Sales
Analysis Manager Paul Ballew said the company will re-evaluate its incentive
approach, specifically on full-size pickups, due to higher spending by Toyota in
the segment.
GM's sales of cars and light trucks stood at 320,668 in June, down from
407,513 a year earlier. Sales of light trucks fell 23% to 182,317, while car
sales fell 19% to 138,351.
Ford, reclaiming the No. 2 spot in terms of U.S. sales, saw June sales slide
8.1% for the month even as it stabilized closely watched truck sales. Ford sold
247,599 cars and trucks in June, compared with 269,404 a year earlier.
The Dearborn, Michigan, company's car sales were down 25%, while sales of
trucks -- representing Ford's most profitable business -- were up 2.9%. Sales of
Ford's F-Series trucks were essentially flat from a year ago, while sales of
crossovers such as the Ford Edge and Lincoln MKX rose 83% from a year ago, the
company said.
Ford and Toyota have been in the battle for the spot of No. 2 U.S. auto
maker. Toyota has topped Ford in sales several times since last year, including
last month. But while Toyota said June sales of cars and light trucks in the
U.S. jumped 10%, it slipped back behind Ford in monthly sales. The Japanese auto
maker, which sold 245,739 vehicles, said June sales were lifted by strong sales
of its Prius hybrid car and Tundra pickup truck.
Among other Japanese auto makers, Nissan's North American unit said June
sales increased 23%. Nissan, and its luxury Infiniti brand, sold 92,213 vehicles
in June.
Honda's U.S. June sales grew 11% to 140,935.
Chrysler, meanwhile, posted a 1.4% decline even as its passenger-car sales
sizzled to a 55% gain. Chrysler posted total sales of 183,347 vehicles for the
month.
JUNE U.S. AUTO SALES
% YTD
Company Vehicles Change Change
General Motors 320,668 -21% -6.8%
Ford Motor 247,599 -8.1% -11%
Toyota Motor 245,739 10% 8.9%
Chrysler Group 183,347 -1.4% -1.5%
Honda Motor 140,935 12% 3.5%