Automakers Post Hefty Sales for August

General Motors, Hyundai, Nissan Are Among Automakers Reporting Strong Sales for August

DETROIT September 3, 2003; By John Porretto, writing for the AP reported that General Motors Corp., Hyundai Motor America and Nissan North America were among automakers posting hefty sales in August as the industry headed to its strongest month so far this year.

Meantime, Ford Motor Co. had one of its best months of 2003, though volume was down sharply from a year ago when the industry recorded one of its best-ever tallies.

GM, the world's largest automaker, set an industry record for monthly truck sales, which rose 5 percent. On the car side, excluding the Saab nameplate, business was off 8.3 percent.

Overall, GM's August volume was down less than 1 percent, topping most Wall Street forecasts.

Several analysts expected August would be the best sales month of the year so far because of Labor Day weekend business, generous incentives on model-year closeouts and the introduction of 2004 models.

"Importantly, August sales continue to reflect strong truck sales and growing confidence in the economy," said John Smith, GM's group vice president for North American vehicle sales, service and marketing.

Paul Ballew, GM's executive director for market and industry analysis, said another positive trend is a richer mix of vehicle sales, which is helping to boost the average transaction price and shore up the bottom line.

For example, Cadillac, GM's revamped luxury brand, had its best sales month in August since October 1990.

"August largely reinforces our belief that the economy is on the road to recovery," Ballew said.

Nissan's total sales, which include its Infiniti division, rose 14 percent last month. Infiniti sales were up nearly 60 percent in August and are up 40 percent year-to-date.

Hyundai set an all-time record in the United States with 41,073 sales in August. Stronger sellers were the Elantra compact, the Santa Fe sport utility vehicle and the midsize Sonata sedan.

Ford recorded its second-best sales month of the year in August, but overall volume was down 13 percent from the phenomenal year-ago period.

Sales of Ford, Lincoln and Mercury brand cars were off 27.8 percent last month, while light truck sales -- which include pickups, vans and sport utility vehicles -- declined 4.8 percent.

Still, executives at the world's second-largest automaker said they were optimistic about prospects for the rest of the year as the economy improves and the all-new F-150 pickup, Ford's top-selling vehicle, reaches showrooms nationwide.

A national advertising campaign for the new F-150 -- the largest effort in company history -- was to begin Thursday.

"There's no question that consumer demand for autos ... is increasing as we progress through the year," said Ford sales analyst George Pipas. "We've been optimistic, although now it may even be that our optimism was muted."

Ford said only May was a better sales month overall so far this year, but August marked the best month for retail sales. Fleet sales accounted for only 15 percent of last month's business, far less than May.

Ford's results were lower than several Wall Street forecasts.