Gas Prices making a dent ... finally!

GM, Ford sales tumble in September; Asian brands see smaller drop October 03, 2005 11:25 PM EDT DETROIT - High gas prices and a summer of heavy discounting sent sales of
sport utility vehicles plummeting last month for U.S. automakers. Asian manufacturers, who had avoided the employee-pricing lures Detroit offered, saw their results less affected.
Several automakers reported strong car sales in their monthly reports released Monday, but SUVs took a hit industrywide in the U.S. market as gas prices skyrocketed following Hurricane Katrina. Sales of the GMC Envoy and Chevrolet Tahoe fell more than 50 percent compared to last September. The Cadillac Escalade, Mazda Tribute, Ford Explorer, Ford Expedition, Toyota Sequoia and Nissan Armada all saw their sales fall by 18 percent or more. Dodge Durango sales were down 11 percent.
General Motors Corp. sales were down 24 percent overall. Its SUV and truck sales fell 30 percent while its car sales dropped 14 percent. GM's overall sales were flat for the first nine months of the year.
GM said it knew September would be a challenge after a summer of heavily promoted discounting. GM began letting consumers pay the employee price in June and ended the promotion Friday.
"We're coming off the three strongest months in the history of the industry," said Paul Ballew, GM's executive director of market and industry analysis.
Ford Motor Co. also took a hit, with sales down nearly 20 percent in September. Ford, Lincoln and Mercury car sales rose 6 percent, but sales of trucks and SUVs fell nearly 28 percent. The company's overall sales were also flat for the first nine months of the year.
Ford attributed the declines to the strong summer. Ford began allowing customers to pay the employee price in July, and the incentive helped deplete the automaker's 2005 inventory. George Pipas, Ford's U.S. sales analysis manager, said the company expects SUV sales will stay soft in the near term.
Ballew cautioned that gas prices aren't the only reason for falling SUV sales. He said an aging lineup of SUVs and more options in car-based crossovers also are affecting the segment.
Strong pickup sales were further proof that gas prices aren't the only factor in the SUV's decline. The Dodge Ram pickup had its best month ever and its sales were up 5 percent, DaimlerChrysler AG's Chrysler Group said. Toyota said sales of its Tacoma pickup rose more than 21 percent.
Chrysler bucked the trend among U.S. automakers, reporting a 4 percent increase in September sales, led by a 26 percent jump in car sales. The Dodge Neon, which Chrysler stopped making two weeks ago, saw a 69 percent increase. Chrysler's truck and SUV sales were down 1.8 percent, but its overall sales were up 7.5 percent for the year.
Asian automakers also saw weak SUV sales, but none of the payback that U.S. automakers had to contend with. Toyota Motor Corp.'s sales were up 10 percent in September, thanks to a 22 percent increase in car sales. Toyota's truck sales fell 4 percent. The Japanese automaker's sales were up 11 percent in the first nine months of the year, and the company said it set a third-quarter U.S. sales record.
Sales of the hybrid Toyota Prius surged 90 percent.
Nissan Motor Co. said its sales were up 16.4 percent in September, led by a 26.5 percent increase in car sales. While sales of the Armada, its largest SUV, were down, sales of the midsize Pathfinder SUV more than doubled, which helped lift Nissan's truck sales by 3 percent.
Honda Motor Co.'s sales rose 11.7 percent thanks to positive response to the redesigned 2006 Civic, which helped boost car sales by 20 percent. Honda's truck sales were flat for the month and its overall sales were up 6.3 percent for the January-September period.
Hyundai Motor Co.'s sales were up 9 percent in September. The South Korean automaker's overall sales were up 10 percent for the year.
Volkswagen AG was the only automaker that didn't report U.S. sales on Monday. Spokesman Tony Fouladpour said the results would be delayed until Tuesday because Monday was a German holiday.
There were 25 selling days in September 2005, the same number as September 2004.
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What was the source of the article?
Thanks.
Brent
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Brent Secombe, 10/4/2005, 7:30:37 AM,

http://news.yahoo.com/news?tmpl=story&u=/nm/20051003/bs_nm/autos_sales_d c_4
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middle-aged man to a female bosom." -- Michael Green
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wrote:

Associated Press, yesterday.
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On Tue, 04 Oct 2005 07:30:37 -0400, Brent Secombe wrote:

With Honda and Nissan leading the way!
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With all that domestics still sold more vehicles than all of the various import brands combined. I addition Chevrolet earned the number one car brand spot over Toyota. GM still is number manufacture as well as first in total car sales and total truck sales. Ford in still the number two manufacture, as well as the number one in individual vehicle sales with the F150. The number one mid size and small SUV with the Explorer and the Escape. ;)
mike hunt
mike hunt

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Only in this country. Anywhere else they don't stack up. The only thing that drives the big three's sales is huge, powerful, gas guzzling engines and sales to people who "just have to buy American." If you took those things away, why would you ever look past Toyota and Honda for a new vehicle?
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I don't think you'll be able to take that "good feeling" of buying American away from people, especially the ignorant. But, over the long run, The Economist predicts that either GM or Ford will fold within the decade. Given the overhead that the big 3 run at, I wouldn't be surprised. These organizations are too ingrained into the gas guzzlers to adapt to change. Ford may learn to adapt with their earlier embrace of hybrid technology, but GM will almost certainly die a painful death before they even dent the fuel cell arena.
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Good guess but trucks still outsell cars in the US. Manufactures know what their customers want to buy and that is what they offer. GM and Ford offer small cars for those that want them but more buyers want the larger safer vehicles. Ford does offer a hybrid SUV but Ford buyer apparently are smart enough to know it is not worth $3,000 more than buying the same vehicle with a V6 and ALL of it fuel for three years for the same amount or less. With the V6 they not need to worry about replacing a battery pack some where down the road, for $4,000, in the hybrid.
Why do you think Toyota offers so many trucks and car based trucks? Buyers want trucks, Honda is even offering their Accord based van as a truck called the Ridgerunner. GM offers more high mileage vehicles than does Toyota and Ford offers many fuel efficient cars with decent performance, as well. That is why both GM and Ford far outsell Toyota in cars and trucks. Many buyers do not want to settle for an under powered truck or car with a 4 cy engine to get reasonable fuel mileage as do the 8 out of 10 buyers of the Camry.
mike hunt

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snipped-for-privacy@kattare.com wrote:

Death would be the best thing for GM.
I heard on the radio recently that GM starts every vehicle with a $1500 disadvantage compared to the Japanese manufacturers because of medical obligations to retirees. If GM goes truly belly up, someone can buy the wreckage or reorganize them without their crushing obligations. Too bad for the retirees, but that's what you get when you squeeze the company for mega benefits for years even in the face of increasing competition.
My health insurance sucks. I can only dream of the kind of benefits that the UAW gets from the Big Three. Soon, I fear, they will only dream of them as well.
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Isn't envy one of the deadly sins?
mike hunt
wrote:

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Yes, I do envy the purchasers of vehicles that had the side-saddle gas tank, the guillotine windshield, the undersized tires for a smooth ride, the tuck-under rear wheels, the rear-license plate gas filler, the hood-latch failures, the poor reliability, the roll-overs from bad design, the numerous lawsuits, the fires, the breakdowns.... I'm sorry, I am a little biased since I've bought Hondas and Toyotas, I've had NO problems.
wrote:

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wrote:

I envy the purchasers of vehicles that last 200,000 miles and more without major problems. Wait. I am one! I don't have to envy myself anymore. . . .
Charles of Kankakee 93 Corolla 205,500 miles
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wrote:

LOL My five-year-old Echo just went over 60,000, so it's still a cream puff. The '87 Corolla we sold my mom still hasn't cracked 150,000 yet.
Cars don't work hard for us
:-)
Natalie
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Well, you have to admit 90 miles a day adds up fast.
Charles of Kankakee
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Ya think?
Natalie
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Charles @ Kankakee wrote:

I have rarely seen a North American brand car (other than a handful of old GM V8's) make it to 200,000 miles with few non-routine problems, even with regular maintenance. On the other hand, I have seen lots of Toyotas and Hondas that have done so, including one friend of mine who put close to 300,000 miles on a late 80s Accord with very few problems. Another friend put 200,000 miles on a '90 Corolla GT-S, and the only major problem was the alternator (it must have been a crappy Delco!).
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200K is that all? I saw thousands of vehicles over many years in fleet service with twice that and still going strong, I have a 71 vehicle with nearly 300K on the clock that looks and runs like new ;)
mike hunt

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Why would one ever think to compare the vehicles that any manufutactures built twenty years ago to the vehicles another manufactures builds today? All manufactures vehicles today are far superior in all respects to those built then, or even those built ten years ago. I sure your new Honda is a much better car than my 59 Toyapet or my first Civic. LOL
mike hunt

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Apparently most buyers do not agree with you opinion, since GM is number one in the world as well
mike hunt

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