— Robust February sales pushed
Motor Co.
rival
decade.
Ford made its gains during a month roiled by severe
weather in much of the country and by new revelations about
defects, including a public apology by top executive
that it would use a combination of zero-percent financing and cut-rate
lease pricing to regain customers driven away by its turmoil.
Ford sales rose 43 percent, bolstered by strong
business with rental car agencies and commercial and construction fleet
customers. The
Mich.
142,006 vehicles last month, or about 300 more than GM, according to
Corp.
Ford’s sales report underscored how a lineup of new
products and the meltdown at
helped to fuel the automaker’s turnaround. Ford last outsold GM — hurt
by a strike — in
Sales of Ford’s Fusion sedan, for example, more than
doubled to 16,459 cars from February a year ago. Meanwhile sales of the
Camry, its main competitor from
“We are off to a strong start in 2010, and we
continue to gain traction,” said
president of U.S. marketing, sales and service for Ford.
He said more than 50 percent of the reservations to
purchase the Ford Fiesta, a small car that goes on sale later this year,
came from customers who didn’t currently own a Ford vehicle.
“Ford did extremely well,” said
Caldwell
“It shows there is not just one or two vehicles carrying the entire
brand.”
Year-to-date, Ford has captured 17.5 percent of the
U.S. auto market, up more than three percentage points from the same
time period in 2009.
Hampered by a series of large recalls and federal
investigations into safety defects,
100,027 vehicles compared with
Given the negative publicity that has hounded the
company this year,
group vice president
that we sold as many cars as we did.” The decline was less than what
many analysts had predicted.
about 10 million recall notices worldwide, mostly for floor mats that
can entrap the gas pedal and for a gas pedal that can stick. It has
blamed both problems for causing unintended acceleration.
“Clearly we have some work to do,” Carter said. “We
stubbed our toe in regards to our image.”
To help revive sales,
“unprecedented” combination of advertising as well as financing and
lease incentives through
zero-percent financing for 60 months on its most popular 2010 model-year
vehicles, including the Camry and Corolla sedans subject to the
recalls.
The automaker also plans a “loyalty” incentive to
persuade
customers to stick with the company. Owners of
two years of free maintenance when they purchase a new auto.
shoppers cash rebates ranging from
special lease deals, depending on the vehicle and the sales region.
Analysts said the program could hurt the industry’s
drive to regain profits following a disastrous 2009.
“These expensive programs should represent a material
step up in cost of incentives, leading us to anticipate a breakdown in
the industry’s recent pricing discipline,” said
a
He said the financing package will cost about
over the life of the loan for an average car at current auto-loan
interest rates. This compares with current estimated average incentives
of around
and
he said. Automakers have been working to reduce the size of the
incentives and discounts used to induce sales.
Most other manufacturers haven’t announced incentive
offers for March, he said, “but the choice is between following through
or risk losing some market share. … In particular, the impressive
turnaround in profitability of Ford North American operations benefited
largely from materially improved pricing, which could be in jeopardy if
the overall industry pricing discipline collapses.”
Ford, GM and Honda as well as import brands
sales gains mainly because sales were so depressed last year when
automakers felt the effects of the recession and growing unemployment.
The industry is expected to sell about 11.5-million
vehicles this year. Although that’s up about 10 percent from 2009, it is
still well below the 16 million to 17 million per year of much of the
last decade.
Total industry sales reached 780,265 in February up
13 percent from the recession-plagued 688,945 of a year ago.
Year-to-date, sales are up about 10 percent, Autodata reported.
Factors such as “limited availability to credit, fuel
prices that keep teasing the
continue to work on reducing overall debt” were still keeping auto
sales at a comparatively slow pace, said
analyst with auto information company
GM officials said the industry’s sales would have
been about 5 percent higher if it were not for the bad weather last
month.
“Bad snow and more bad snow,” said
DiGiovanni
sales in the north-central region, and we got hammered there. We think
the retail will come along as we move into spring and better weather.”
GM’s sales rose 12 percent for the month to 141,535,
and its performance was even better after factoring out the Pontiac,
Hummer, Saturn and Saab brands it closed or shed as part of the
automaker’s bankruptcy reorganization last year.
GM reported U.S. sales of 138,849, up 32 percent
compared with
the strong sales of crossovers and passenger cars.
Despite its gains, GM reconfigured its sales and
marketing team Tuesday. Sales and marketing will become separate
departments for GM and all its brands, though the two were combined only
in December.
North American operations in December, said he will become more involved
in the sales operations.
“I want us to get the most market share and profit we
can out of this organization,” Reuss said. “I don’t think we’ve worked
far enough or fast enough.”
American
Motor Co.
February compared with a year ago.
“A year ago, the economy and our industry were at a
low point marked with great uncertainty,” said
executive vice president of sales for American Honda. “While we remain
cautious, we’re happy to see customers actively seeking Honda products.”
Sales at
percent to 70,189 from a year ago. And Chrysler, which also underwent
bankruptcy reorganization last year, saw sales rise by less than 1
percent, or just 399 vehicles, to 84,449 compared with
2009
—
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