(Photo: General Motors)
DETROIT Sales fell at General Motors, Toyota and Volkswagen in September, an odd month that appears likely to snap a 27-month streak of gains for the U.S. auto industry.
GM posted an 11 per cent decline compared with a year ago as the company even reported falling sales of its redesigned full-size pickup trucks. Pickup truck sales have been a strong point for the industry as small businesses return to dealer showrooms. Volkswagen sales were off 12 per cent, while Toyota sales were down 4 per cent.
But Ford and Chrysler appeared to have outperformed the industry. Ford sales were up 6 per cent, while sales at Chrysler rose 1 per cent.
All automakers report U.S. sales on Tuesday. Chrysler and Ford officials joined many industry analysts in predicting that overall sales fell last month for the first time in more than two years. Analysts say a quirk in the calendar not lower demand is to blame.
Labour Day weekend is typically strong for U.S. auto sales, and this year was no exception. But because the holiday came early, the auto industry counted all of that weekends sales in its August tallies. That means Septembers sales will be missing the usual holiday boost.
Analysts say all the factors that have been driving this years strong car sales including low interest rates, the improving economy and the need to replac aging vehicles remain in place. They see a strong close to the year.
The market continues to move at a very healthy pace, said Erich Merkle, Fords top U.S. sales analyst.
September U.S. sales are expected to total around 1.1 million, according to auto shopping site Edmunds.com. That would be a 4 per cent decrease from last September and a 24 per cent decrease from the blistering pace in August, which was the best month in more than six years.
The U.S. government shutdown could be the wild card that cuts into sales for the remainder of the year, but Jim Lentz, Toyotas North American CEO, said the only way it would have an impact is if it causes credit to tighten.
At GM, sales of the redesigned Chevrolet Silverado pickup fell 11 per cent, while the GMC Sierra dropped nearly 2 per cent, reversing a recent trend and marking a contrast to GMs main rivals in the truck market.
Ford reported that sales of its top-selling F-Series pickups rose 10 per cent. Chrysler was buoyed by the Ram pickup with sales up 8 per cent.
Chrysler also said sales of the Jeep Grand Cherokee SUV increased 19 per cent.
Ford was led by sales of its Fusion midsize sedan, which jumped 62 per cent over last September, while the subcompact Fiesta posted nearly a 29 per cent gain. But sales of the Escape SUV one of Fords bestsellers dropped 2 per cent to 22,607, and Explorer SUV sales were up just 1.5 per cent.
Bill Fay, the Toyota Division chief, said September was still a good month for the industry even though there were two fewer selling days than a year ago. Industry fundamentals are strong as interest rates stay low and consumers remain confident, he said.
Volkswagen, which has struggled all year against strong 2012 numbers, had a poor month. Its top-seller, the Jetta small car, posted a nearly 10 per cent sales decline.
Nissan also reported a sales drop, off nearly 6 per cent from a year earlier. The Nissan Divisions sales were off 6 per cent, while the Infiniti luxury brand posted a 4 per cent decline.
