US light vehicle sales slipped in November on the back of a weakening housing market and higher gasoline prices. Figures issued by Ward’s put the total US light vehicle market at 1.175m units, down 1.7% on the same month last year.
Go deeper with GlobalData
The combined Detroit Big Three lost share once again, but there was at least some good news for Ford which managed to halt its dropping share this year and record a small sales gain during November. Some analysts said that Ford’s gain (+0.6%) mainly reflected stepped up sales to fleet operators.
“It is encouraging to see our newest cars, crossovers, hybrids and industry-first SNYC technology resonating with customers,” said Mark Fields, president, The Americas. “Continuing to deliver more quality products that people really want and carefully gauging customer demand in the months ahead will help ensure we stay on track with our plan.”
Toyota Group managed a slight sales gain of 0.3%. “Rising fuel prices and sliding home values delivered a one-two punch this month,” said Jim Lentz, Toyota’s US sales chief. “But the industry’s not down for the count. Demand for fresh, more fuel-efficient products continues to show strength,” he added.
Toyota brand sales posted a November record for the brand, boosted by Camry and strong Prius sales, but Lexus recorded a reversal.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataLexus passenger cars reported November sales of 14,892 units, a decrease of 7.8% from November 2006, mainly reflecting model introduction timings.
Analysts said that production cutbacks by Ford and GM reflected their new-found flexibility to idle capacity in response to slower demand.
GM was off 11% in November versus last year and said it also cut sales to low-margin rental fleets by 29% compared with last November.
GM’s sales chief Mark LaNeve said: “We don’t want to bury our dealers in inventory. We want to try to continue to run leaner on inventory.”
Edmunds.com said the average incentive offered on a new vehicle in November rose less than 1% from a year earlier to US$2,309.
Chrysler and Ford both cut incentive spending from year-earlier levels, Edmunds said.
GM spent slightly more, putting average incentives for all three Detroit-based automakers in a narrow range of about $3,100 to $3,300 per vehicle, Edmunds estimated.
Ford said its car sales fell 2% but truck sales rose 2%, largely on the strength of the Ford Escape small sport utility vehicle and Ford Edge crossover. Sales of the newly redesigned Ford Focus jumped 18%. Ford’s sales dropped 12 percent for the first 11 months of the year.
Chrysler was down 2% on last year, mainly on lower truck sales. The new Sebring lifted the group’s car sales.
“Despite consumer concerns, Chrysler LLC sales are off only 2% showing customers are still purchasing quality and value. High fuel prices and falling home prices continue to impact vehicle sales in November which remain below trend,” said Darryl Jackson, Vice President – U.S. Sales. “We remain optimistic moving into December due to the growing availability of new models, including Chrysler Town & Country, Dodge Grand Caravan and the Jeep Liberty.”
Ward’s estimates total US light vehicle sales in the first eleven months stood at 14.7m units, 2.5% lower than the same period last year.
The mood looking into 2008 is decidedly gloomy on prospects for the economy and consumer sentiment. A Wachovia Capital Markets Survey cited in the WSJ found that about 34% of dealers plan to cut new vehicle orders going forward, up from 19% in September, the last time the survey was conducted.
 |
 |
 |
