U.S. Auto Sales Drop About 5% in July

The Detroit free press reports that U.S. auto sales continued to slide from last year's record pace, only the decline in July got a bit steeper amid a double-digit sales drop at Ford Motor Co. and smaller dips at General Motors Corp. and Chrysler Group. Sales at the former Big Three were down 9.6 percent, or more than 88,000 vehicles, compared to a year ago.

Meanwhile, many foreign automakers posted slight increases, as companies such as Toyota Motor Corp. and Volkswagen AG continued a yearlong chipping away at the share of the U.S. market controlled by GM, Ford and the Chrysler Group. Including figures from foreign automakers, U.S. auto sales declined about 5.25 percent from July 2000, according to Autodata Corp. The month's annual sales rate fell to 16.25 million, compared to 17.15 million in July 2000. The slowing sales were blamed on a slowing economy, weakening demand for new vehicles and a June incentive splurge that may have pulled sales away from July.

Ford, Chrysler and GM took big hits in small car sales. Sales at Ford fell 13.7 percent, not counting its foreign subsidiaries Volvo, Jaguar and Land Rover. Car sales were down 17.9 percent and truck sales dropped 11.1 percent. GM sales for the month were down 9.3 percent, not counting foreign subsidiaries Saab and Isuzu. New car sales at GM fell 18.8 percent, while light-truck sales rose 1.7 percent. Chevrolet Cavalier sales were down 48.9 percent. The Chrysler Group, meanwhile, posted better-than-expected sales in July. The Auburn Hills arm of Stuttgart, Germany-based DaimlerChrysler AG, saw July sales fall 3.1 percent. Overseas automakers, including Toyota and Volkswagen, are forecast to gain market share from GM, Ford and Chrysler, a trend that has been going on all year long. Toyota sales were up 5.8 percent for the month, posting the best July ever. The Japanese automaker reached the 1-million unit milestone for the year in July, the earliest it has ever done so in its 44-year history of selling in the United States. VW sales were up 6.2 percent for the month, for the German automaker's best July since 1973. Other smaller foreign automakers posting large gains were Ford's Volvo Car Group, up 31 percent, and Hyundai Motor, which was up 32 percent. Not all foreign automakers posted increases. Honda Motor Co. sales were off 6.1 percent, while Nissan reported a drop of 17 percent from a year ago. Mitsubishi sales dropped 24 percent.