Posted on 06/03/2008 2:15:25 PM PDT by Baladas
NEW YORK (CNNMoney.com) -- U.S. auto sales tumbled in May as buyers fled from pickups and sport utility vehicles in the face of average gas prices that are now just shy of $4 a gallon.
The trouble hit not only U.S. automakers General Motors (GM, Fortune 500), Ford Motor and Chrysler LLC -- which have long depended on sales of pickups and SUVs -- but also trimmed the sales of their top Japanese rival Toyota Motor (TM).
But other Asian automakers held up reasonably well. Nissan (NSANY) reported a narrow sales gain while Honda Motor (HMC) and Kia rode American buyers' new interest in fuel economy cars to post record sales in the month.
In fact, Honda passed Chrysler in U.S. sales for the first time. What's more, the Honda Civic beat out the Ford F Series pickup to become the nation's best selling vehicle for the first time on record as well. The Toyota Camry also topped F Series sales in the month.
Labor pains for GM GM reported that overall sales plunged 27.5% in the month, far worse than the 19% drop forecast by sales tracker Edmunds.com.
The declines were led by the 37% tumble in the sales of light trucks, such as pickups and SUVs. But even sales of cars fell 14% during the month.
GM was hit not only by rising fuel prices and the downturn in the U.S. economy, however. It was also hurt by a series of strikes that hit production of some of its hotter vehicles, including the Malibu sedan and a series of some of its popular crossover vehicles.
GM said it believed it lost between 15,000 and 18,000 vehicle sales because of the labor problems, about 6% to 7% of its reported sales.
(Excerpt) Read more at money.cnn.com ...
This is more of the ripple effect of record high gas prices than management issues.
Prius sales were down too...
but Corolla sales have skyrocketed (49mpg)
Go figure. We just replaced my wife's 92 Honda Civic(34,500 miles) with an 08 Civic. Much nicer car, mileage is down a little bit from 39-43 to 30-35 but since she puts on 2500 miles a year or so, I think we can deal with that mpg drop.
These high gas prices have put everyone who would have wanted to trade a low mileage vehicle in for something better just keeps them on the road longer!
There is also an impact on auto sales from the freezing of HELOC’s around the country. In many of the boom-boom real estate stats, a lot of autos were being purchased with home equity loans because the rates were lower than an auto loan, and the interest was deductible, unlike the interest on an auto loan.
When the various banks started “freezing” HELOC’s this spring, many people started worrying about future auto sales. As it turns out, they were rightly worried.
Two Accord’s and a Civic are in my driveway. It’s been that way for the past 23 years. Our last American made cars were a Ford Pinto (don’t laugh) and a Buick Regal...both sucked.
I haven’t looked back since 1985.
Don’t feel bad. My dad actually owned TWO Pintos in the 70’s. He said he liked the gas mileage.
You figure that the big 3 would have put serious effort in at least one 40+ MPG auto once gas prices went north of $2/gallon.
And I don’t mean an electric car.......
I am waiting for those high mileage diesels talked about here to hit the market. A 55 mpg diesel Jetta sounds really nice right now eventhough diesel is expensive.
it’s detroit’s own fault.
some people told them for decades that they didn’t like their cars,
and the management and unions did what they wanted.
they deserve it.
I had a a new 87 Regal that the paint peeled off two years later. GM wouldn’t even fix it telling me it was because of acid rain. Uh, oh. Maybe I shouldn’t of mentioned that.
The best mileage I ever got was when I owned a 1985 Ford Mustang sedan with stick shift and a four-cylinder engine. An absolute, underpeforming dog of a car, but it sipped gas.
A 55 mpg diesel Jetta sounds really nice right now eventhough diesel is expensive.
A diesel Mercedes hybrid Smart Fortwo is supposed to get up to 100 miles/gal. Manufactures claim. It is usually less maybe it will work out to 70 mpg. Supposed to be in US this fall.
Prius sales were down because of supply issues. According to one report I read earlier many dealers are sold out.
My neighbor just bought a Prius for 22K. The dealer said that hers was the last for that price. Great gas milage (52 mpg), ugly car. :)
Such as the Honda Civic in the late 1970's -- nearly 40mpg on the highway and over 40 mpg with careful driving habits.
Yes, they do. And I no longer have any sympathy.
GM closing 4 truck and SUV plants in North America
AP | 6/3/2008 | AP
Posted on 06/03/2008 7:45:18 AM PDT by tobyhill
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