Ford, Chrysler, Nissan U.S. Sales Fell as ‘Clunkers’ Aid Ended
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By Jeff Green and Katie Merx
Oct. 1 (Bloomberg) -- Ford Motor Co., Chrysler Group LLC and Nissan Motor Co. said U.S. auto sales fell in September as waning demand after the “cash for clunkers” rebates may have cut industry deliveries to the second-slowest rate this year.
Ford’s decline was 5.1 percent, which was worse than analysts’ estimates and halted two months of gains. Chrysler said today that its U.S. deliveries tumbled 42 percent and Nissan reported a 7 percent decrease.
“We knew sales would slow down significantly after the cash for clunkers surge,” said Stephen Spivey, senior auto analyst at Frost & Sullivan in San Antonio. “We see sales slowing down for the rest of the year. October will tell you what kind of rebound comes off that dip.”
The seasonally adjusted annual sales rate slid to 9.3 million vehicles, based on the average of 8 analyst estimates compiled by Bloomberg. July and August were the only months in 2009 when the industry benchmark topped 10 million, a level that Ford and researcher J.D. Power & Associates expect the U.S. to surpass for the year.
The industry is coming off an August surge that snapped a streak of monthly sales declines dating to 2007. Buyers responded to the U.S. government’s offer of as much as $4,500 to trade in older, less fuel-efficient light vehicles from July 27 through Aug. 24, with almost 700,000 purchases.
Shrinking Inventory
Showroom visits probably fell after the $3 billion program helped empty dealers’ lots. With inventory at a 24-year low at the end of August, customers found fewer choices and automakers less willing to offer discounts.
Industrywide light-vehicle sales will be 10.3 million this year and 11.5 million in 2010, Westlake Village, California- based J.D. Power estimates. Last year’s sales were 13.2 million, after averaging 16.8 million this decade through 2007.
The lowest pace this year was 9.11 million, in February. The annual rate is important to the industry because manufacturers, suppliers and dealers use it to compare monthly totals by taking into account seasonal buying patterns.
September sales may have fallen 44 percent at Detroit-based General Motors Co., based on six analysts surveyed by Bloomberg. Deliveries probably dropped 9.7 percent at Toyota City, Japan- based Toyota Motor Corp. and 13 percent at Honda Motor Co., according to 2 analysts.
Analysts’ Estimates
The analysts’ estimates are adjusted for one more sales day this month than in September 2008. Unadjusted figures, used by Bloomberg and some automakers, would be about 4 percentage points lower.
September sales at Ford slid 8.9 percent on an adjusted basis, worse than the 5 percent average of 6 analysts’ estimates. The decline on that basis was 44 percent for Auburn Hills, Michigan-based Chrysler, matching the average of 5 estimates. Nissan’s decrease on the same basis was 11 percent, compared with analysts’ estimates of 7.1 percent.
U.S. sales for Ford including Volvo totaled 114,655 cars and trucks, compared with 120,788 a year earlier, the company said in a statement today. Chrysler sales were 62,197, down from 107,349. Tokyo-based Nissan said sales dropped 7 percent to 55,393 from 59,565.
Ford fell 16 cents, or 2.2 percent, to $7.05 at 1:09 p.m. in New York Stock Exchange composite trading. The shares have more than tripled this year.
Auto sales improved later in September from early in the month as dealers restocked inventory and discounting picked up, said Jessica Caldwell, an analyst at auto-information provider Edmunds.com in Santa Monica, California.
Edmunds raised its forecast for September’s annual pace to 9.34 million on Sept. 24, from 8.8 million a week earlier.
Prices paid for GM, Ford and Chrysler vehicles rose by $2,000 on average in the second quarter as automakers slashed production, J.D. Power said. Incentives fell by 26 percent from March to August, according to Autodata Corp.
“The last two weeks of September could be an important indicator of the underlying rate auto sales are trending at,” Brian Johnson, a Chicago-based analyst at Barclays Capital, said in a note to clients.
To contact the reporters on this story: Jeff Green in Southfield, Michigan, at jgreen16@bloomberg.net; Katie Merx in Southfield, Michigan, at kmerx@bloomberg.net.
Last Updated: October 1, 2009 13:12 EDT
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C4C was a complete joke. They pulled forward the demand and now have to deal with months of losses.
