US car sales slow down; GM, Nissan & Honda stay ahead

DETROIT: Chrysler, Toyota Motor and Ford Motor each reported sales declines last month, but General Motors, Nissan Motor and Honda Motor surprised analysts on Tuesday by showing an increase in a declining US auto market.

Toyota’s 2.8% sales drop, Ford’s 14.4% decline and Chrysler’s 6.1% decrease were symptoms of what analysts said would be a slumping US auto market due to high gasoline prices, rising mortgage payments and turmoil in the financial markets. Ford’s drop allowed Toyota to take the No 2 slot in US auto sales from Ford for August and for the first eight months of the year.

But GM, led by increased pickup truck sales, showed an increase of 6.1%, while Nissan Motor reported its sales increased 6.3% for August and Honda Motor reported a 4.7% increase. Ford has blamed declining sales through the year on efforts to wean itself of low-profit sales to rental car companies and other fleet buyers. It also said it had heavy incentives that boosted sales last August.

But the automakers’ sales analysts said they were being hit by a declining US economy that has rattled consumers. “Overall, the industry experienced softer sales in August than a year ago,” Darryl Jackson, vice president of US sales for Chrysler, said.

Toyota, with 233,471 vehicles sold in August, beat Ford for the month. It sold 1.788 million vehicles during the first eight months of the year, edging Ford, which sold 1.784 million. Analysts have predicted Toyota will overtake Ford for the No 2 slot for the full year in 2007. This does not include heavy trucks in Ford’s sales figures. Ford’s car sales of 64,864 were off 33.7% when compared with the same month last year, while light truck sales, at 152,572, dropped 2.3%, the company reported.