After reading this, you have to wonder if GM made the right choice by stopping work on the Zeta to develop new SUV's and Trucks. With gas prices high and not expected to drop, it sounds like the public is reacting by purchasing more fuel efficient vehicles instead of the gas guzzlers.
GM, Ford Sales Fall; U.S. Share Slips
By Michael Ellis
DETROIT (Reuters) - General Motors Corp. (NYSE:GM - news) and Ford Motor Co. (NYSE:F - news) posted weaker March U.S. vehicle sales on Friday, losing further market share to Japan's Toyota Motor Corp. and Nissan Motor Co. as high gasoline prices hurt sales of fuel-thirsty sport utility vehicles.
The two biggest Japanese auto makers recorded double-digit sales gains and their best-month ever, as their aggressive expansion into new segments of the market and fresher lineup of cars and trucks wooed customers away from the U.S. auto makers .
The exodus by car buyers, out of U.S. brands and into those of their foreign rivals, is a worrisome trend for Detroit, where Ford and GM have been struggling to revive profits in their automotive operations.
Vehicle sales across the industry came in at a seasonally adjusted annual rate of 16.85 million, according to tracking firm Autodata Corp. That beat expectations for sales in the range of 16.5 million to 16.7 million, compared with 16.7 million in March last year.
Ford, the second-largest U.S. auto maker, said its U.S. sales dropped 5.1 percent to 285,659 cars and trucks last month, excluding its foreign brands such as Jaguar and Land Rover.
GM, which in March warned that it expected sharply weaker profits this year, said its U.S. light vehicle sales fell 1.3 percent in March to 417,281 vehicles. All sales results are adjusted for an extra selling day in March this year, and GM's results excluded its Saab brand.
Both GM and Ford reported weaker sales of traditional, truck-like SUVs, while some crossover SUVs -- which are built on car platforms and tend to get better gas mileage -- posted better results.
"Higher gas prices seem to be accelerating the demand for small and crossover sport utility vehicles," Earl Hesterberg, Ford group vice president of North America marketing, sales and service, said in a statement.
GM and Chrysler played down the impact from gas prices, however. And sales for the Chrysler side of DaimlerChrysler AG rose 4 percent in March to 212,978 vehicles due to the continued strength of its Chrysler 300 sedan and strong results for its minivans.
PUMP PRICES
Toyota said its U.S. sales rose 12.3 percent to a record 203,223 vehicles, driven by a new high for its hybrid gas-electric Prius sedan, while its Corolla and Scion small cars also racked up gains. Toyota also posted weaker sales for large SUVs, but it is less dependent on them than its Detroit rivals for overall sales.
Americans paid an average of $2.16 per gallon of regular gasoline at the pump on Friday, up from $1.75 a year ago. A Goldman Sachs report this week said that oil prices could double from current levels.
Nissan reported a 12.6 percent gain in sales to 105,804 vehicles, passing the 100,000 mark for the first time. Even with gas prices surging, Nissan's sales of its Armada full-size SUV climbed more than 50 percent.
"They've shown no signs yet of a slowdown in their grabbing up of the market," Peter Langlois, a strategic analyst with the Ernst & Young Global Automotive Center, said of the gains by Nissan and Toyota.
"With consumer confidence down, gas prices up, it turned out better than we thought," Langlois said, referring to overall industry results.
Analysts had expected that GM, which last month surprised the market by warning that earnings this year could be 80 percent below expectations, could report a drop in sales of as much as 10 percent.
The auto maker launched a new "March Madness" sales incentive program to try to boost sales this month. The incentives included additional cash rebates of up to $1,500 on the sale of GM vehicles that have gone unsold for 125 days or more.
GM, Ford Sales Fall; U.S. Share Slips
By Michael Ellis
DETROIT (Reuters) - General Motors Corp. (NYSE:GM - news) and Ford Motor Co. (NYSE:F - news) posted weaker March U.S. vehicle sales on Friday, losing further market share to Japan's Toyota Motor Corp. and Nissan Motor Co. as high gasoline prices hurt sales of fuel-thirsty sport utility vehicles.
The two biggest Japanese auto makers recorded double-digit sales gains and their best-month ever, as their aggressive expansion into new segments of the market and fresher lineup of cars and trucks wooed customers away from the U.S. auto makers .
The exodus by car buyers, out of U.S. brands and into those of their foreign rivals, is a worrisome trend for Detroit, where Ford and GM have been struggling to revive profits in their automotive operations.
Vehicle sales across the industry came in at a seasonally adjusted annual rate of 16.85 million, according to tracking firm Autodata Corp. That beat expectations for sales in the range of 16.5 million to 16.7 million, compared with 16.7 million in March last year.
Ford, the second-largest U.S. auto maker, said its U.S. sales dropped 5.1 percent to 285,659 cars and trucks last month, excluding its foreign brands such as Jaguar and Land Rover.
GM, which in March warned that it expected sharply weaker profits this year, said its U.S. light vehicle sales fell 1.3 percent in March to 417,281 vehicles. All sales results are adjusted for an extra selling day in March this year, and GM's results excluded its Saab brand.
Both GM and Ford reported weaker sales of traditional, truck-like SUVs, while some crossover SUVs -- which are built on car platforms and tend to get better gas mileage -- posted better results.
"Higher gas prices seem to be accelerating the demand for small and crossover sport utility vehicles," Earl Hesterberg, Ford group vice president of North America marketing, sales and service, said in a statement.
GM and Chrysler played down the impact from gas prices, however. And sales for the Chrysler side of DaimlerChrysler AG rose 4 percent in March to 212,978 vehicles due to the continued strength of its Chrysler 300 sedan and strong results for its minivans.
PUMP PRICES
Toyota said its U.S. sales rose 12.3 percent to a record 203,223 vehicles, driven by a new high for its hybrid gas-electric Prius sedan, while its Corolla and Scion small cars also racked up gains. Toyota also posted weaker sales for large SUVs, but it is less dependent on them than its Detroit rivals for overall sales.
Americans paid an average of $2.16 per gallon of regular gasoline at the pump on Friday, up from $1.75 a year ago. A Goldman Sachs report this week said that oil prices could double from current levels.
Nissan reported a 12.6 percent gain in sales to 105,804 vehicles, passing the 100,000 mark for the first time. Even with gas prices surging, Nissan's sales of its Armada full-size SUV climbed more than 50 percent.
"They've shown no signs yet of a slowdown in their grabbing up of the market," Peter Langlois, a strategic analyst with the Ernst & Young Global Automotive Center, said of the gains by Nissan and Toyota.
"With consumer confidence down, gas prices up, it turned out better than we thought," Langlois said, referring to overall industry results.
Analysts had expected that GM, which last month surprised the market by warning that earnings this year could be 80 percent below expectations, could report a drop in sales of as much as 10 percent.
The auto maker launched a new "March Madness" sales incentive program to try to boost sales this month. The incentives included additional cash rebates of up to $1,500 on the sale of GM vehicles that have gone unsold for 125 days or more.
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