Despite a generally positive showing for October new car sales in the US, market leaders GM and Ford both suffered. Japanese and European manufacturers continue to increase their market share, although concerns remain about over-capacity in the industry.
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New vehicle sales in the US for October are likely to show a positive performance, with expectations of a 5% increase in sales compared to 2002.
The majority of manufacturers increased sales over last year, most
notably Chrysler Group, which recorded an 11% increase with 166,262 vehicles for the month. Several Japanese and European manufacturers also posted gains.
Despite the general increase, the two market leaders, General Motors and Ford, both struggled to keep pace and saw volumes fall. Ford can be pleased with an improvement in its sales mix, with an increase in the profitable SUV and Pick-Up sector of 2.2% (187,402 vehicles), but in contrast car sales fell 9.1% (95,066) giving the firm a total for October of 282,468.
General Motors suffered a 7% fall from last year, registering 363,043 vehicles in total, with truck sales falling by 8%. It is thought this was partly due to a slight correction for the stronger than expected sales in previous months.
The Japanese manufacturers continue their rise in the world’s largest market, as US consumers increasingly perceive their cars as superior in quality to those from domestic manufacturers. Toyota’s sales were up 12%, with its Lexus luxury division enjoying a 40% increase. Nissan’s sales for the month increased by 18%, although Honda saw losses.
At the premium end of the market, the European manufacturers performed strongly, with BMW, Porsche and Mercedes-Benz posting record sales for the month.
However, there is growing concern about over-capacity in the market, with factories in the US (domestic and foreign) capable of producing 20 million cars annually against sales of 17 million or less. The result is the continuation of discount schemes and zero percent financing, and at present these appear to be bolstering the performance of foreign firms over their domestic rivals.
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