General Motors holds off Toyota

General Motors holds off Toyota

Posted: Wednesday, July 2, 2008 9:16 pm
By: AP

DETROIT (AP) — General Motors Corp. soundly beat Toyota Motor Corp. in June to retain its traditional U.S. sales lead, but GM sales still dropped 18.2 percent during a dismal month for most large automakers. Toyota’s U.S. sales fell 21.4 percent, while Ford Motor Co. said it sales tumbled nearly 28 percent. GM’s shares bounced nearly 6 percent higher in afternoon trading Tuesday after sinking to their lowest level in more than a half century during Monday’s session. The nation’s biggest automaker on Tuesday reported selling 262,329 vehicles for the month, compared with Toyota’s 193,234. Some industry analysts had expected Toyota to beat GM in the U.S. for the first time, but both companies were hurt by a sluggish economy and poor sales of trucks and sport utility vehicles. Toyota car sales fell 9.4 percent in June while its truck sales were off 38.8 percent. GM’s car sales sank 21 percent in June, while its incentive-boosted truck sales were off 16 percent. For the first half of the year, GM sales fell 16.3 percent compared with the year-ago period. Toyota sales were down 6.8 percent for the first six months of the year. Toyota took the global sales lead from General Motors in the first quarter, capitalizing on growth in China and Europe as GM saw its North American sales drag down gains in other markets. GM barely won the global sales race with Toyota last year, but Toyota overtook it as the world’s top automaker as measured by global vehicle production in 2007. Honda Motor Co., with its car-heavy lineup, reported a 1.1 percent sales increase for June, with a 19.3 percent rise in car sales offsetting an 24 percent drop in trucks. But Ford, still reliant on trucks and sport utility vehicles, saw its sales drop 27.9 percent. Industry analysts had predicted June auto sales could drop by double-digits to their lowest monthly rate in 16 years. Dearborn-based Ford blamed the latest sales decline on high gas prices and low consumer confidence, which sent buyers to the sidelines. It reported steep drops in June sales of pickup trucks and sport utility vehicles, including a 41 percent year-over-year decline for the F-Series pickup, a perennial best-seller, and a 52 percent drop for the Ford Explorer SUV. George Pipas, Ford’s top sales analyst, said SUV sales are probably down for good. Published in The Messenger 7.2.08

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