Tweet
Ford overtakes GM for first time in 12 years
Total US February vehicle sales are expected to decline because of snow and Toyota recalls.
Posted by Elizabeth Strott on Tuesday, March 2, 2010 12:31 PM
Automakers will be reporting their February vehicle sales figures throughout the day today, and the wild winter snowstorms and Toyota Motor's (TM) recall woes likely weighed on the numbers.
Economists expect sales to have fallen to a seasonally adjusted annual rate of about 10.3 million, down from 10.8 million in January.
While that estimate would be the fourth straight year-over-year increase, the comparisons were pretty easy -- February 2009's pace was 9.1 million, the lowest since 1981.
Ford Motor (F) had a good month, with sales rising 43.1% to 142,285 last month, higher than expectations of a 30.1% gain. It was the first time since 1998 that Ford's sales topped rival General Motors' sales -- during a strike that crippled GM.
The last time before 1998 was during a 1970 walkout, according to data from Ford.
"This is huge because it’s the classic rivalry like Pepsi and Coke, the Red Sox and the Yankees," John Wolkonowicz, an analyst at IHS Global Insight, told Bloomberg News. "This is the real thing. They’re doing it with the stuff that matters -- quality, products and reputation. It could be a turning point."
February's rise was the 16th monthly increase in 17 months for Ford.
GM posted an 11.5% gain in February to 141,951 cars and trucks, well below economists' estimates of a 24% increase.
Sales at GM's four brands that it is keeping -- Chevrolet, GMC, Buick and Cadillac -- rose 32% from last February, but sales of Saab, Saturn, Hummer and Pontiac -- the brands it is closing or getting rid of -- slumped 86%.
GM will host a conference call at 2 p.m. ET today to discuss the company's North American business. Published reports say GM will shake up its sales and marketing operations in an effort to boost growth.
Chrysler managed to report a slight increase in February; sales rose 0.5% to 84,449. Analysts had expected sales to have fallen 13.2% last month. Car sales rose 38% to 25,884, while truck sales fell 10% to 58,565.
Toyota reported an 8.7% drop to 100,027 vehicles; analysts had expected a 10% decline because of its recalls.
Toyota also announced new incentive programs to try to bring buyers back to its showrooms. Toyota is offering free financing for five years on eight 2010 model-year vehicles, cash back of between $500 to $3,000 on nine models and two years of free maintenance for returning customers, according to The Wall Street Journal, which citied a document from a Chicago auto dealer.
Honda Motor's (HMC) sales rose 12.7% to 80,671 vehicles, and Kia Motors (KIMTF) reported a 9% gain in U.S. February vehicle sales, to 24,052 units.
Total US February vehicle sales are expected to decline because of snow and Toyota recalls.
Posted by Elizabeth Strott on Tuesday, March 2, 2010 12:31 PM
Automakers will be reporting their February vehicle sales figures throughout the day today, and the wild winter snowstorms and Toyota Motor's (TM) recall woes likely weighed on the numbers.
Economists expect sales to have fallen to a seasonally adjusted annual rate of about 10.3 million, down from 10.8 million in January.
While that estimate would be the fourth straight year-over-year increase, the comparisons were pretty easy -- February 2009's pace was 9.1 million, the lowest since 1981.
Ford Motor (F) had a good month, with sales rising 43.1% to 142,285 last month, higher than expectations of a 30.1% gain. It was the first time since 1998 that Ford's sales topped rival General Motors' sales -- during a strike that crippled GM.
The last time before 1998 was during a 1970 walkout, according to data from Ford.
"This is huge because it’s the classic rivalry like Pepsi and Coke, the Red Sox and the Yankees," John Wolkonowicz, an analyst at IHS Global Insight, told Bloomberg News. "This is the real thing. They’re doing it with the stuff that matters -- quality, products and reputation. It could be a turning point."
February's rise was the 16th monthly increase in 17 months for Ford.
GM posted an 11.5% gain in February to 141,951 cars and trucks, well below economists' estimates of a 24% increase.
Sales at GM's four brands that it is keeping -- Chevrolet, GMC, Buick and Cadillac -- rose 32% from last February, but sales of Saab, Saturn, Hummer and Pontiac -- the brands it is closing or getting rid of -- slumped 86%.
GM will host a conference call at 2 p.m. ET today to discuss the company's North American business. Published reports say GM will shake up its sales and marketing operations in an effort to boost growth.
Chrysler managed to report a slight increase in February; sales rose 0.5% to 84,449. Analysts had expected sales to have fallen 13.2% last month. Car sales rose 38% to 25,884, while truck sales fell 10% to 58,565.
Toyota reported an 8.7% drop to 100,027 vehicles; analysts had expected a 10% decline because of its recalls.
Toyota also announced new incentive programs to try to bring buyers back to its showrooms. Toyota is offering free financing for five years on eight 2010 model-year vehicles, cash back of between $500 to $3,000 on nine models and two years of free maintenance for returning customers, according to The Wall Street Journal, which citied a document from a Chicago auto dealer.
Honda Motor's (HMC) sales rose 12.7% to 80,671 vehicles, and Kia Motors (KIMTF) reported a 9% gain in U.S. February vehicle sales, to 24,052 units.
Captain Obvious reporting for duty.
LOL U MAD
Comment