DOW JONES NEWSWIRES
U.S. auto sales continued sliding in March, but the auto makers
pointed to a sales rebound in the last week of the month, driven by
incentives as the companies look to revive volumes that are at
their lowest level in a quarter of a century.
"The market is starting to show small signs of life which need
to be nourished like seedlings," Chrysler LLC Vice Chairman and
President Jim Press said. "It's too early to see a trend, but
spring shows signs of hope."
The top five manufacturers all reported narrower year-on-year
declines compared with February. General Motors Corp. (GM) reported
a 45% drop in sales for the month, while Chrysler LLC and Japan's
Toyota Motor Corp. (TM) both posted a 39% slide. Ford Motor Co. (F)
saw a 41% decline.
Nonetheless, the declines - extending the industry's months-long
slide - underscore the pressure on GM and Chrysler to demonstrate
they deserve fresh financial aid from Washington, part of a
historic makeover of the nation's troubled auto industry.
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.
GM light-vehicle sales dropped to 155,334 from 280,713, which
was better than expected. Car sales fell 41% and light trucks
dropped 47%. There were 25 selling days in March, one less than a
year earlier.
Toyota's light car and truck sales fell to 132,802 from 217,730,
in line with expectations. Car sales dropped 38%, while trucks fell
41%. SUV sales continued falling, down 33%.
Chrysler's sales of light vehicles and trucks dropped to 101,001
from 166,386, topping 100,000 for the first time since September.
Inventory dropped 17% from a year earlier.
Ford's light-vehicle sales fell to 131,102 from 221,642, topping
analysts' estimates. SUVs continued their slump with a 73% decline,
while sales of trucks and vans dropped 40%.
Honda Motor Co. (HMC), meanwhile, reported a 36% sales drop, to
88,379, with car sales falling 34% and trucks tumbling 40%.
To jump-start sales, U.S. auto makers offered, on average, a
record $3,169 in incentives on each vehicle sold in March, said
car-shopping Web site Edmunds.com. The figure represents a jump of
$733, or 30.1%, from a year earlier and $171, or 5.7%, from
February.
"Auto makers are pulling every lever in their effort to attract
buyers, as evidenced by the new programs from Ford and GM," said
Edmunds analyst Jesse Toprak. "The typical incentive programs
simply do not resonate in today's economy."
Meanwhile, European car sales fell by a quarter in February, but
initial March data released Wednesday showed a rebound in some
markets driven by government-led incentives. Sales in France rose
8.1% in March, ending five months of declines.
In recent trading, Ford shares rose 2.3% to $2.69 and Toyota's
American depositary shares jumped 5.9% to $67. GM dropped 1.6% to
$1.92.
-By Mike Barris, Dow Jones Newswires; 201-938-5658;
mike.barris@dowjones.com
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