Bloomberg reported that Toyota Motor Corporation and Honda Motor Co, beneficiaries last year of US cash for clunkers incentives, had the steepest August sales declines among large carmakers because of the program’s end and a slowing economy.
Toyota, the world’s largest automaker, sold 34% fewer vehicles in the US than in August 2009, while Honda’s volume plunged 33%. Sales for Nissan Motor Co and Hyundai Motor Co fell 27% and 11%, respectively.
Asia based brands had a combined 29% decline as compared with a 14% dip for US based General Motors Co, Ford Motor Co and Chrysler LLC, and topping a 21% industry wide drop.
Mr Michelle Krebs a senior analyst at Edmunds.com said that while Toyota sales were expected to fall considering the boost it got last year from rebates for trade ins, this month’s results are even worse than expected. Toyota still is suffering a hangover from its numerous recalls this year.
Mr Jesse Toprak VP of industry trends at TrueCar.com said that US auto sales last month were the slowest for August in 28 years as model year closeout deals failed to lure people concerned about the economy and their jobs. Consumers avoided showrooms as fear of a double dip recession grows following the 27% slide in existing home sales in July 2010.
According to Mr Woodcliff Lake of New Jersey based Autodata Corp, industry wide sales totaled 997,468, down from 1.26 million a year earlier. Asia based brands captured 46.9% of sales, down from 52.3% a year earlier, while GM, Ford and Chrysler raised their market share 3.6 percentage points to 44.3%.
Toyota sold 148,388 Toyota, Lexus and Scion vehicles last month, down from 225,088 a year earlier. Corolla small cars, Camry sedans and Prius hybrids, fuel efficient models that benefited from last year’s federal rebates, led declines for the Toyota City, Japan based company last month, falling 53%, 43% and 38%, respectively.
Mr Bob Carter Toyota's group vice president for US sales said that "YoY comparisons aren't relevant to a year ago, owing to Cash for clunkers. Given current economic conditions, we’re characterizing August as a fair month for Toyota."
Mr Carter said that the company, which recalled a record number of vehicles this year, is seeing a return to normal based on vehicle trade ins. As of July, about 57% of cars and trucks traded in at US dealerships for new Toyota models were from competing brands, returning to the level prior to the recalls.
Honda said that it sold 108,729 Honda and Acura models, down from 161,439 a year earlier. Declines for the Tokyo based company were led by its Accord, Civic and Fit cars, down 43%, 47% and 53%, respectively.
According to Autodata, market share for Honda, fourth in US sales behind GM, Ford and Toyota, declined 1.9 percentage points to 10.9%. Nissan, Japan’s third largest automaker, sold 76,827 Nissan and Infiniti models, a drop from 105,312 a year ago. The Yokohama, Japan based company’s Versa and Sentra small cars, its main beneficiaries of cash for clunkers discounts in 2009, had respective declines of 60% and 50% last month.
Mr Al Castignetti Nissan’s vice president of US sales said that even with grimmer economic news in August, Nissan dealers reported a jump in store visits late in the month and financing options have improved. He added that "One of the bright spots out there was the easing of credit. It's loosening up a little, which makes things easier."
Hyundai, South Korea’s largest automaker, said that its deliveries fell to 53,603 last month from 60,467 a year earlier. As Hyundai’s sales decline trailed that of the industry, the Seoul based company’s market share rose to 5.4% from 4.8%.
Mr Dave Zuchowski Hyundai’s vice president of US sales said that "Even with an erratic stock market, sluggish home sales and faltering consumer confidence over the past several months, Hyundai continues to significantly outperform the industry and gain market share."
Kia Motors Corporation, Hyundai’s affiliate, sold 32,465 autos, down by 19% YoY. Sales for Subaru, the auto brand of Toyota affiliated Fuji Heavy Industries Limited, declined 22%, and Hiroshima, Japan based Mazda Motor Corporation said its volume dipped 26%.
Among smaller Asia based brands, Mitsubishi Motors Corporation's sales declined 37% and Suzuki Motor Corporation plunged 68%. Some automakers report sales figures adjusting for the number of selling days in a month. In August 2010 there were 25 selling days, compared with 26 in August 2009. On that basis, Toyota’s sales dropped 31%, Honda’s fell 30%, Nissan’s declined 24% and Hyundai had a 7.8% dip.
(Sourced from www.bloomberg.net)
