DOW JONES NEWSWIRES
Ford Motor Co. (F) reported a 41% plunge in U.S. sales for March
amid a scramble by auto makers to launch new incentives and revive
volumes that are near 25-year lows.
Despite the year-over-year dive, Ford's sales surged 32% from
February and topped analysts' estimates. Ford also said its retail
share rose for the second straight quarter, reaching the highest
level since December 2006.
Ford ranks third in the U.S. market behind General Motors Corp.
(GM) and Toyota Motor Corp. (TM) and has seen its share climb after
steering clear of reliance on government funding.
Annualized industry sales of cars and light trucks in the U.S.
are forecast to fall below 9 million in March, compared with 9.12
million in February, which saw the lowest sales since 1981.
Ford said March domestic light-vehicle sales fell to 131,102
from 221,642. There were 25 selling days in March, one less than a
year earlier.
The company built 349,000 vehicles in the first quarter, down
26,000 from its previous forecast.
The March data follow the deadlines set by the U.S. government
auto task force for GM and Chrysler LLC - April 30 and May 31,
respectively - to produce fresh restructuring plans or face
bankruptcy protection. The Detroit 3 have suffered more than
overseas rivals because of their higher cost structures and larger
dealer networks.
Ford, Lincoln and Mercury car sales dropped 37% and
sport-utility vehicles continued their slump with a 73% decline.
Sales of trucks and vans dropped 40%, as did sales of the F-series
pickup.
U.S. Ford, Lincoln and Mercury inventory dropped 27% in light of
the production cuts that have already taken place.
In early March, car makers estimated the seasonally adjusted
annualized selling pace for light vehicles was about 9 million,
down from 9.8 million in January and far below the pace of 15.4
million recorded in February 2008. But car-shopping Web site
Edmunds.com said last week that latest data indicate the industry
is on track to post annual sales of just 8.9 million, or slightly
more than half of 2007 sales.
European car sales fell by a quarter in February, with March
data expected next week.
In recent trading, Ford shares fell 2 cents to $2.61 and have
lost half their value since September.
Toyota, GM and Chrysler will report sales later Wednesday.
-By Mike Barris, Dow Jones Newswires; 201-938-5658;
mike.barris@dowjones.com
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