The big three continued to backpedal to imports as all US car makers reported lower sales and most overseas automakers marked strong gains. Major Detroit automakers reported Achilles’ heel in June auto sales on Tuesday, notwithstanding a flood of new sales incentives intended to prevail over market pressures created by high fuel prices and relentless flaws in the housing market.
The fact is surely not concealed anymore. Being an American automaker ain’t that easy. Gone are the days when American carmakers were the Kings. The intrusion by the foreign automakers has deserted the dominance in its own realm. Sadly, they have no one else to blame than themselves.
The consequences General Motors faced were predominantly fragile. With the June’s sale downfall by 21.3% from the period a year ago, it dropped to a market share of 22.1%.
Ford Motor Co. and DaimlerChrysler AG’s Chrysler Group posted more humble declines for the month. Unlike others, deficit was utterly due to a decline in sales to fleet customers, notably rental-car companies.
However, Japanese automakers reigned supreme. With Toyota, Honda and Nissan Motors, the aliens posted a double digit increase as customers went insane for their fuel-efficient cars and heavy incentives. Toyota, with sales up by 6 percent, finished a full market-share point ahead of Ford’s American brands to rank again as the second-biggest car company in the United States, with 16.9 percent of the market.
Since the past one and a half year, GM has been working to diminish its dependence on incentives, such as discounts and low financing programs, in order to enhance profitability and improve the resale value of its new vehicles. 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 22.8% to 182,317, while car sales fell 19.3% 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, Mich., company’s car sales were down 24.6%, 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.
Nevertheless, Toyota slipped back behind Ford in monthly truck sales. Toyota claimed June sales of cars and light trucks in U.S. that jumped up to 10.2%. The Japanese auto maker, which sold 245,739 vehicles, said June sales were raised by sturdy sales of its Prius hybrid car and Tundra pickup truck.
Among other Japanese automakers, Nissan Motor’s North American unit claimed 22.7% increase in sales. Nissan, and its luxury Infiniti brand, sold 92,213 vehicles in June, compared with 75,154 in June 2006. Likewise, Honda’s June sales grew 11.5% to 140,935 from 126,449 last year.
Chrysler, for the moment, posted a 1.4% decline even as its passenger car sales sizzled to a 55% gain. The company suffered a decline just because the customers are now shifting from trucks and SUVs into more fuel efficient models.
Chrysler posted total sales of 183,347 vehicles for the month, behind from 185,946 a year earlier. Separately, the Chrysler Group has settled to develop small and subcompact cars with Chery Automobile of China, for sale in North America, Europe and other markets as soon as next year. The companies will incarnate existing Chery vehicles to be sold under Chrysler brands and co-develop future models.
The effects are weird as the shares are going down for the natives. In recent after-hour trading, GM shares were at $37.10, down 2.3% from the 1 p.m. market close.
Ford closed 2.3% down at $9.42, and lately slipped to $9.35 after hours. Shares of Chrysler’s German parent, DaimlerChrysler AG, ended the regular session up 0.2% at $93.45, and Toyota’s American depositary shares closed 0.1% off at $127.97.
So what do we have on our hands, yet another month where we see the big three from Detroit pummeling down the sales chart? Needless to say a custom, for it’s become more customary than an Indian wedding. Sales rev up are definitely important but then its become such a routine , that the next month around I wont give you a detail , more of an assurance that the Detroit automakers are still struggling .
Image : Allposters
