GM, Ford, Toyota Sales Rise After Clunkers Hangover, Ghettomobiles kill Chrysler, down 33%.

http://www.bloomberg.com/apps/news?pid=20601103&sid=aQOeGBLI1_Bg

Nov. 3 (Bloomberg) -- General Motors Co. and Ford Motor Co. both said U.S.
auto sales rose in October, their first combined increase in three years,
as the industry rebounded from a drop in demand after the so-called cash
for clunkers program.

Sales climbed 4.1 percent from a year earlier at GM, its first monthly
gain since January 2008, and 3.1 percent at Ford, the companies said
today. Toyota Motor Corp. reported an increase of less than 1 percent and
Nissan Motor Co. posted a 5.6 percent gain. Sales fell 0.4 percent at
Honda Motor Co. and 30 percent at Chrysler Group LLC.

“The economy is beginning to recover,” Dana Johnson, chief economist at
Dallas-based Comerica Bank, said in an interview. “We probably lost some
car sales in September because inventory was so low they couldn’t make
deliveries. Auto sales are now probably trending up and they should be up
noticeably in the first quarter.”

Industry sales slid 23 percent in September after the end of the federal
rebates of as much as $4,500 for buyers who traded in older, less fuel-
efficient vehicles. The program ran from July 27 through Aug. 24,
contributing to an August industry sales increase that was the first
monthly gain since 2007.

Industrywide October sales of cars and trucks ran at a seasonally adjusted
annual rate of 10.3 million, based on the average of 9 analyst estimates
compiled by Bloomberg. The rate was 10.6 million a year earlier.

Sales at a pace of 10 million or more would make October the first month
this year to top that mark without the benefit of the clunkers incentives.

‘Positive Spin’

“It does look like there will be positive spin from October and that’s a
breath of fresh air after the roller coaster of a year we’ve had,” said
Stephanie Brinley, an analyst at AutoPacific Inc. in Troy, Michigan.
“There may still be some monthly declines going forward, but probably not
the sustained drops we saw over the last two years.”

Before a 5.1 percent drop in September, Ford posted U.S. sales gains in
July and August, powered by consumer demand for the clunkers cash. That
was the first time that Ford, GM or Chrysler increased deliveries for two
or more months since GM’s August-October streak in 2007.

Ford yesterday also reported surprise third-quarter net income of $997
million and the Dearborn, Michigan-based company’s first operating profit
since early 2008 on smaller discounts and higher sales.

“Ford surprised us again,” Michelle Krebs, a senior analyst at
Edmunds.com, which predicted a 6.9 percent decline for the automaker, told
Bloomberg Television. “They surprised us with their profit yesterday, too.
They have some really strong products that are doing well.”

GM, Ford

GM, the largest U.S. automaker, sold 177,603 cars and trucks in October,
compared with 170,585 a year earlier, according to a statement from the
Detroit-based company.

“Clearly, we’re seeing improvement in the economy and in the industry,”
said Michael DiGiovanni, GM’s sales analyst.

Ford, second biggest among U.S. automakers, reported sales of 136,920 cars
and trucks, rising from 132,838. It was the company’s third gain in the
past four months.

Toyota, the world’s biggest automaker, said its sales increased to
152,165, from 152,101. Honda reported that it sold 85,502 new vehicles,
dropping from 85,864. Nissan posted sales of 60,115 Nissan and Infiniti
vehicles, up from 56,945.

Chrysler sales totaled 65,803, a drop from 94,530, the Auburn Hills,
Michigan-based company said in a statement.

Analysts’ Estimates

GM, which had a 45 percent decline in October 2008 on reduced access to
financing, was expected to report an adjusted gain of 4.6 percent, the
average of seven analyst estimates. On that basis, GM’s sales rose 0.4
percent.

The estimates are based on daily selling rates. October had 28 selling
days, one more than 2008. Ford, GM, Chrysler and some automakers don’t
adjust for the difference in sales days. Toyota and Honda are among those
that use adjusted figures.

Ford was predicted to fall 4.4 percent, adjusted for sales days. On that
basis, its sales fell 0.6 percent. Chrysler’s adjusted decline was 33
percent, wider that the average 29 percent drop estimated by seven
analysts.

Toyota’s adjusted drop of 3.5 percent was smaller than the 6.9 percent
average estimate of three analysts. Honda’s decline on that basis was
narrower than the 5.6 percent that analysts expected.

Hyundai Motor Co., which has gained market share this year, may report an
increase of 33 percent for the month, according to market-research firm
Edmunds.com. Hyundai’s October 2008 U.S. sales fell 31 percent.

 

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