Posted on 01/05/2005 6:21:13 AM PST by wmichgrad
DETROIT (AP) The auto industry's traditional Big Three remained intact in 2004, but record demand for vehicles from Japan's top carmakers helped reduce the Detroit automakers' share of the American market to its lowest level ever.
Due largely to a robust December, sales for the year rose about 1 percent from 2003 to roughly 17 million units.
But the U.S. market share for GM, Ford and Chrysler dwindled to an unprecedented 58.7 percent in 2004, down from 60.2 percent in 2003 and 61.7 percent in 2002, according to the automotive research firm Autodata Corp.
At the same time, Toyota, Nissan, Honda and other Asian brands increased their share from 32.6 percent in 2003 to 34.6 percent last year. Three years ago Asian imports accounted for only 30 percent.
The trend is expected to continue in 2005, though most automakers said Tuesday a blistering December sales pace bodes well for the start of business this year.
December's seasonally adjusted annual sales rate was a 2004-best 18.4 million units, up from 17.4 million a year ago, Autodata said. The rate indicates what sales would be for the full year if they remained at the same pace for all 12 months.
General Motors Corp. and Ford Motor Co., the nation's two largest automakers, reported lower U.S. sales in 2004 despite an onslaught of new vehicles, while DaimlerChrysler AG's Chrysler Group rode the success of the popular Chrysler 300C sedan to the lone gain for the Big Three.
Meanwhile, the American arms of Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co. sold more cars and trucks in the United States than ever before.
"In an era where prices can't be raised, the Big Three of Asia Honda, Nissan and Toyota and the Chrysler Group ... all picked up market share," said Paul Taylor, economist for the National Automobile Dealers Association. "Exciting new product remained the key to success."
Toyota's U.S. division sold more than 2 million vehicles for the first time in its 47 years of existence as its sales grew 10 percent for the year. Business in December rose 18 percent.
Chrysler, the smallest of Detroit's Big Three, sold 146,000 more vehicles than Toyota last year. Chrysler's edge in 2003 was roughly 260,000.
"Our products have stimulated demand," said Yukitoshi Funo, president and chief executive of Toyota Motor Sales USA Inc. "The sales milestone is a reflection on the acceptance of products as varied as Scion, Sienna and Prius."
Honda's 30-percent rise in sales in December helped propel the automaker to its 11th consecutive year for a sales increase. With 1.4 million U.S. vehicle sales, Honda said business rose 3 percent in 2004.
Nissan North America, aided in part by full-year sales of its full-size Titan pickup and other new vehicles, said sales rose 23.7 percent for the year and 32.7 percent in December.
GM's business declined 1.4 percent in 2004, a disappointment given its industry-leading 29 vehicle introductions. Car sales were down 3.7 percent; truck sales rose less than 1 percent.
Two bright spots were Chevrolet and Cadillac, two brands that received billion-dollar infusions in recent years to increase offerings and appeal. Chevy had its best year since 1988, Cadillac its best since 1990.
Chevy also made considerable progress against Ford in the battle for America's top-selling brand, but Ford retained the distinction for the 18th consecutive year.
GM's total sales for December fell roughly 7 percent, with losses on both the car and truck sides.
"For the year as a whole, we came up a bit short," said Paul Ballew, GM's executive director of global market and industry analysis. "We certainly have been talking about that as the year played out. We did see a stronger second half. However, that couldn't fully offset the weak start we had in the first half."
No. 2 Ford's U.S. sales fell 4.9 percent for the year and 3.6 percent in December, the 10th monthly decline of 2004.
Ford said sales of its Ford, Lincoln and Mercury cars rose nearly 1 percent in December, helped by late-year arrivals such as the next-generation Ford Mustang and its new flagship sedan, the Ford Five Hundred.
Ford's retail car sales rose on a monthly basis for the first time since January 2003, said Ford's top sales analyst, George Pipas.
"It's just one month, but it's very encouraging to see car sales improve as we filled the pipeline with the products we introduced in October and November," Pipas said.
But truck sales fell 5 percent in December.
For the year, car sales were off 14 percent, despite Ford's much-touted "Year of the Car" promotion.
Truck sales fell slightly less than 1 percent for the year, but Ford's F-Series lineup retained its position as America's best-selling vehicle for the 23rd straight year. Truck sales include pickups, vans and sport utility vehicles.
Another high point: Ford set an industry record for full-size pickup sales in 2004, breaking its own mark of three years ago.
For the year, Chrysler's volume was up a little more than 3 percent. It was up 5 percent in December.
All percentages are adjusted and based on the daily sales rate. There were 27 selling days last month and 26 in December 2003. There also was one extra selling day for all of 2004 versus 2003.
GM closed down 41 cents to $39.89 on the New York Stock Exchange Tuesday. Ford shares shed 5 cents to $14.66. DaimlerChrysler's U.S. shares ended off 26 cents to $47.42.
On the Net:
General Motors Corp.: http://www.gm.com/
Ford Motor Co.: http://www.ford.com/
DaimlerChrysler AG: http://www.daimlerchrysler.com
Toyota Motor Corp.: http://www.toyota.com
Honda Motor Co., http://www.honda.com
Nissan Motor Co.: http://www.nissanusa.com
I really wanted to buy US and did not even consider foreign made until after I had test driven EVERYTHING the Big 3 had to offer.
IMHO all the American cars were nothing more than big boxes. Pickups with the body enclosed, seats added and some things for the gadget freak.
Toyota Sequoia was the same.
Hummer - What an overrated box for the wannabe SEAL! Brinks trucks have bigger windows!
Drove the Nissan Armada and wouldn't let them take it back to the dealer. Sports car ride with plenty of legroom . Back seat actually has more legroom than the front seats. An engine that gives a whole new meaning to the word "zoom." Better gas mileage on its big V-8 than on my Jeep Cherokee with a straight six. 16 around town and 19 on the highway. Average speed from CT to SC last Thanksgiving was 66.9. Gas mileage? MPG for the entire 1900 mile round trip was 19.1.
I'd thought about buying a new Sienna this year, but decided to wait for the Hybrid version which will be out in a few years. Found a nice 2003 Town & Country LTD AWD, with low mileage, so that will hold us over until the hybrid Sienna comes along.
The big Toyota Camry plant is in Kentucky, Georgetown, I think.
....I wish unions would stick to union issues....
Politics is a union issue. Politics allows what they cherish most.....more pay less work or get some one else to do the work for you. Politics is mother's milk to the great American (Union) Working Man who is always looking for how to get out of work while recieving the same or greater wage.
Good point. I like buying BMW's because the German auto unions are crippling the German economy, while building great cars, making Germany less influential in the world.
....When our economy collapses .....
.
No pain, no gain. Cancer surgery can be painful.
Good point. American cars don't last. How many 10 yearto 15 year old American cars do you see on the road that actually look decent?? Conversely, I see tons of 1988-1994 BMW's and Volvos that look almost new.
I always buy GM cars. Mine always seem to last far over 200,000 without any major problems. My oldest car (and most trustworthy) is a 1989 Pontiac Grand Prix. It has 198,00 miles, has been in 1 wreck, has been driven on dirt roads a lot (I live on a farm), and has had no problems exept for normal maintenance stuff like an alternator.
I have been driving a Nissan since 1997, 160K and never been in the shop. The big 3 can't boost this.
My next one will be a Nissan Titan, built in my home stae Of Mississippi. Why drive a Mexican Ford or Canuck Chevy?
I disagree - I have heard union presidents/leaders come out for gun control, for abortion, higher taxes, against immigration controls, for socialized medicine, etc. What the heck do these issues have to do with running a union?
I think it possible that the union (and bureaucratic) regulations are a main reason for the departure of heavy industry from our shores. The market is like a force of nature, hard to deny its power.
I have a hard time buying an American car, not only are they stodgy, they aren't very high quality (with maybe a couple exceptions, like the Cadillac). For the money, you are better off with Japanese, I think.
'Course, I drive a '96 4x4 Dodge pickup, but then, I don't think there is any foreigner to compete with that. But my wife has a Saab Aero, there's just nothing like it made here.
i agree.
but i made a mistake of buying the only new american auto of my lifetime. previously i had purchased japanese.
the japanese cars are superior.
my new chevrolet had several things that fell apart immediately afterwards, not to mention that i go screwed by the dealership. chevrolet handled my complaints in an unprofessional manner.
my next car will be japanese and any agreements between me and the dealer will be in writing.
i hope gm goes broke.
I had a Chevy K-5 Blazer for awhile, forget what year, '87 I think. I liked it at first, but at about 85,000 miles the whole thing started falling apart. I got tired of spending money on it and got rid of it. I feel leery about GM products as a result.
anecdotal doesn't convince me. I see with my eyes.
Baloney.
Japanese auto manufacturers are opening new plants right here in the U.S. with boring regularity. In fact, one of the most idiotic aspects of the whole industry is that many "domestic" Big Three cars are either made in Canada or made in the U.S. out of components assembled in Mexico -- while "foreign" brands such as Honda, Nissan, and Toyota are made right here in the U.S.
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