Auto Industry Stabilizes as Ford, Toyota Post U.S. Sales Gains

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Auto Industry Stabilizes as Ford, Toyota Post U.S. Sales Gains

January 05, 2010

By Jeff Green and Mike Ramsey

Jan. 5 (Bloomberg) -- Ford Motor Co., Toyota Motor Corp. and Honda Motor Co. posted U.S. sales gains in December that beat analysts’ estimates as the industry showed signs of stabilizing after its worst year in almost three decades.

General Motors Co. reported a 5.7 percent drop in light- vehicle deliveries, worse than analysts anticipated, while Chrysler Group LLC’s 3.7 percent decline exceeded estimates. Ford sales soared 33 percent, and Toyota jumped 32 percent.

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An industrywide increase for December would cap automakers’ first quarterly improvement since the last three months of 2006, after October and November totals were little changed. The recession and bankruptcies at the predecessors of Detroit-based GM and Chrysler ravaged 2009 sales.

Honda said U.S. deliveries increased 24 percent, and Nissan Motor Co. jumped 18 percent. The results reshuffled the industry rankings in the U.S., with Honda climbing past Auburn Hills, Michigan-based Chrysler and into fourth place for the first time in full-year sales.

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1. Industry overall sales were down for the year, but rose in December

Chrysler sold only 931,000 vehicles for the year, its worst performance since 1962. The Auburn Hills, Mich., automaker saw sales drop 36 percent for 2009 but down only 4 percent in December, far better than the double-digit drops the company reported earlier in the year. And last month's sales rose 36 percent over November, showing signs of some progress at showrooms but also helped by less-profitable sales to fleets such a rental companies and municipalities.

Honda's sales were off 22 percent for the year but up 20 percent for December, while Nissan was up 18 percent for the month but down 19 percent for the year. Toyota sales were up a whopping 32 percent in December but down just over 20 percent for the year.

Ford Motor Co. said full-year sales declined 15 percent, but the company said it posted its first full-year gain in U.S. market share since 1995. It also reported a 33-percent increase in December sales thanks to strong demand for midsize cars like the Ford Fusion, whose sales rose 83 percent. The Ford Escape crossover, meanwhile, rose 75 percent.

Ford's restructuring plan and new products helped it finish strong in 2009 despite a difficult business environment, said Ken Czubay, vice president of U.S. marketing, sales and service. He remained cautious that 2010 is likely to see more ups and downs in auto sales.

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Interesting.