GM, Ford, Chrysler drop; Toyota, Nissan, Honda rise
February 22, 2007
February Sales: The Same Refrain
GM, Ford, Chrysler drop; Toyota, Nissan, Honda rise
Detroit’s three automakers saw sales fall again this month compared with a year ago, pushing total industry sales lower, according to a forecast from Edmunds.com. Meantime, Japan’s top three automakers increased sales.
The combined monthly U.S. market share for Chrysler, Ford and General Motors domestic nameplates is estimated by Edmunds.com to be 53.0 percent in February 2007, down from 57.9 percent in February 2006 and up from 51.8 percent in January 2007.
Some of the drop for the Detroit makers was not only expected but planned. “Domestic sales continue to suffer from pre-planned production cuts and reduction of fleet sales. Year-over-year comparisons will reflect this reality for some time,” said Jesse Toprak, executive director of industry analysis for Edmunds.com.
The domestic automakers hate to see negative numbers, but they know that this painful move is necessary to increase residual values and rebuild brand equity.
Turmoil in the domestic industry can’t be helping, with Chrysler now on the auction block, GM rumored to be a potential buyer and Ford still floundering.
The Detroit Free Press today quoted a top Detroit auto dealer as saying Chrysler’s uncertain future, in particular, has put the brakes on sales in his showrooms. “It’s killed our business,” said Carl Galeana, owner of Galeana Automotive Group in suburban Detroit, who has a large clientele of Chrysler employees.
He’s likely not alone. In other Midwest cities, where automakers and their suppliers employ many residents, sales likely have stalled. Employees of car companies and parts suppliers receive discounts on the vehicles they help produce. With those workers uncertain about their futures, many are holding off on big purchases like vehicles. In addition, employees who took buyouts no longer have to be loyal to the brand that once employed them, so, as has been heard here in Detroit from some of them, they are shopping other makes.
In terms of vehicle segments in February, luxury SUVs and compact cars were hot; large and midsize cars were not.
"Luxury SUVs and compact cars are selling remarkably well this month. We predict they will be up 17.8 percent and 10.5 percent, respectively, over last February," said Edmunds.com’s Toprak. "At the other end of the spectrum, sales of large and midsize cars are slower than they were at this time last year. We predict that large car sales will be down 18.2 percent and that midsize cars will dip 10.7 percent."
As for total industry sales, February vehicle sales, including fleet sales, are expected to be 1.209 million units, a 3.9 percent decrease from February 2006 but an 11.4 percent increase from January 2007, according to Edmunds.com.
Here’s the company-by-company breakdown from Edmunds.com:
GM will sell 284,000 units in February 2007, down 4.9 percent compared to February 2006 and up from 15.7 percent from January 2007. GM's market share is expected to be 23.5 percent of new vehicle sales in February 2007, down slightly from 23.7 percent in February 2006 and up from 22.6 percent in January 2007.
Ford will sell 184,000 units in February 2007, down 23.1 percent compared to February 2006 but up 14.2 percent from January 2007. This would result in a market share of 15.2 percent of new car sales in February 2007 for Ford, down from 19.0 percent in February 2006 and up from 14.8 percent in January 2007.
Chrysler will sell 173,000 units in February 2007, down 9.2 percent compared to February 2006 and up 10.6 percent from January 2007. This would result in a new car market share of 14.3 percent for Chrysler in February 2007, down from 15.1 percent in February 2006 and down slightly from 14.4 percent in January 2007.
Toyota will sell 195,000 units in February 2007, up 16.6 percent from February 2006 and up 10.6 percent from January 2007. Toyota's market share is expected to be 16.1 percent in February 2007, up from 13.3 percent in February 2006 and down slightly from 16.2 percent in January 2007.
Honda will sell 112,000 units in February 2007, up 5.3 percent from February 2006 and up 11.4 percent from January 2007. Its market share is expected to be 9.3 percent in February 2007, up from 8.5 percent in February 2006 and unchanged from January 2007.
Nissan will sell 86,000 units in February 2007, up 1.7 percent from February 2006 and up 3.6 percent from January 2007. Nissan's market share is expected to be 7.1 percent in February 2007, up from 6.7 percent in February 2006 and down from 7.6 percent in January 2007.
© 2007 Edmunds Inc.
February Sales: The Same Refrain
GM, Ford, Chrysler drop; Toyota, Nissan, Honda rise
Detroit’s three automakers saw sales fall again this month compared with a year ago, pushing total industry sales lower, according to a forecast from Edmunds.com. Meantime, Japan’s top three automakers increased sales.
The combined monthly U.S. market share for Chrysler, Ford and General Motors domestic nameplates is estimated by Edmunds.com to be 53.0 percent in February 2007, down from 57.9 percent in February 2006 and up from 51.8 percent in January 2007.
Some of the drop for the Detroit makers was not only expected but planned. “Domestic sales continue to suffer from pre-planned production cuts and reduction of fleet sales. Year-over-year comparisons will reflect this reality for some time,” said Jesse Toprak, executive director of industry analysis for Edmunds.com.
The domestic automakers hate to see negative numbers, but they know that this painful move is necessary to increase residual values and rebuild brand equity.
Turmoil in the domestic industry can’t be helping, with Chrysler now on the auction block, GM rumored to be a potential buyer and Ford still floundering.
The Detroit Free Press today quoted a top Detroit auto dealer as saying Chrysler’s uncertain future, in particular, has put the brakes on sales in his showrooms. “It’s killed our business,” said Carl Galeana, owner of Galeana Automotive Group in suburban Detroit, who has a large clientele of Chrysler employees.
He’s likely not alone. In other Midwest cities, where automakers and their suppliers employ many residents, sales likely have stalled. Employees of car companies and parts suppliers receive discounts on the vehicles they help produce. With those workers uncertain about their futures, many are holding off on big purchases like vehicles. In addition, employees who took buyouts no longer have to be loyal to the brand that once employed them, so, as has been heard here in Detroit from some of them, they are shopping other makes.
In terms of vehicle segments in February, luxury SUVs and compact cars were hot; large and midsize cars were not.
"Luxury SUVs and compact cars are selling remarkably well this month. We predict they will be up 17.8 percent and 10.5 percent, respectively, over last February," said Edmunds.com’s Toprak. "At the other end of the spectrum, sales of large and midsize cars are slower than they were at this time last year. We predict that large car sales will be down 18.2 percent and that midsize cars will dip 10.7 percent."
As for total industry sales, February vehicle sales, including fleet sales, are expected to be 1.209 million units, a 3.9 percent decrease from February 2006 but an 11.4 percent increase from January 2007, according to Edmunds.com.
Here’s the company-by-company breakdown from Edmunds.com:
GM will sell 284,000 units in February 2007, down 4.9 percent compared to February 2006 and up from 15.7 percent from January 2007. GM's market share is expected to be 23.5 percent of new vehicle sales in February 2007, down slightly from 23.7 percent in February 2006 and up from 22.6 percent in January 2007.
Ford will sell 184,000 units in February 2007, down 23.1 percent compared to February 2006 but up 14.2 percent from January 2007. This would result in a market share of 15.2 percent of new car sales in February 2007 for Ford, down from 19.0 percent in February 2006 and up from 14.8 percent in January 2007.
Chrysler will sell 173,000 units in February 2007, down 9.2 percent compared to February 2006 and up 10.6 percent from January 2007. This would result in a new car market share of 14.3 percent for Chrysler in February 2007, down from 15.1 percent in February 2006 and down slightly from 14.4 percent in January 2007.
Toyota will sell 195,000 units in February 2007, up 16.6 percent from February 2006 and up 10.6 percent from January 2007. Toyota's market share is expected to be 16.1 percent in February 2007, up from 13.3 percent in February 2006 and down slightly from 16.2 percent in January 2007.
Honda will sell 112,000 units in February 2007, up 5.3 percent from February 2006 and up 11.4 percent from January 2007. Its market share is expected to be 9.3 percent in February 2007, up from 8.5 percent in February 2006 and unchanged from January 2007.
Nissan will sell 86,000 units in February 2007, up 1.7 percent from February 2006 and up 3.6 percent from January 2007. Nissan's market share is expected to be 7.1 percent in February 2007, up from 6.7 percent in February 2006 and down from 7.6 percent in January 2007.
© 2007 Edmunds Inc.
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