Ford, GM sales off from last October; Chrysler, Toyota, Nissan report double-digit growth

DETROIT November 3, 2003; John Porretto writing for the AP reported that the world's two largest automakers said their U.S. sales declined more than predicted last month as a late summer sales frenzy caused more of an industry backlash than expected.

But the slack in business was not felt uniformly. DaimlerChrysler AG's Chrysler Group, aided by heavy consumer incentives, said Monday it had an 11 percent sales increase from a soft month a year ago.

The domestic arms of Toyota Motor Corp. and Nissan Motor Co. also reported double-digit sales growth in October on the strength of a variety of new or revamped vehicles.

"Our new products are kicking in and adding volume," said Jed Connelley, Nissan's senior vice president of U.S. sales and marketing, referring to the automaker's revived Quest minivan and first full-size SUV.

At No. 1 General Motors Corp., overall sales fell 7.7 percent from a year ago. Truck sales were off 8 percent, car sales nearly 7 percent.

"GM sales in October fell short of our objectives, in part due to a slight hangover from our very strong performance in the third quarter," said John Smith, group vice president for GM vehicle sales, service and marketing.

No. 2 Ford Motor Co.'s domestic business fell nearly 3 percent as strong demand for its new F-150 pickup failed to offset a sharp decline in car sales.

Sales of Ford, Lincoln and Mercury cars were off 9.3 percent last month compared with a year ago, while truck sales rose nearly 1 percent.

Ford sold 68,828 F-Series trucks in October, 12 percent more than a year ago. Ford's F-Series pickup is the best-selling vehicle in the United States, and it accounts for about one-quarter of Ford's sales.

The new F-150, beefier than the previous model, went on sale in September and is considered a vital part of the company's turnaround bid.

Despite October sales that were below predictions of some analysts, Ford officials said they were optimistic about sales prospects as the year winds down.

"The economy is sprinting, and consumer fundamentals remain favorable," said Jim O'Connor, Ford's group vice president for North American marketing, sales and service.

At Chrysler, a nearly 11 percent decline in car sales was offset by 16.6 percent growth in truck volume, spurred by the Dodge Ram pickup.

The Ram had its second-best October ever as sales climbed 46 percent from the year-ago period. Another bright spot was the Pacifica crossover vehicle, which recorded its seventh consecutive month of increased sales since a troubled launch in March.

Nissan's total sales, including the luxury Infiniti division, rose 18 percent. Toyota, with its luxury Lexus line, said sales grew 11 percent in October, a result that pleasantly surprised the company.

"A sustained uptick in economic indicators, coupled with a wealth of strong new products launched throughout the year, has fueled surprisingly high year-to-date sales," said Jim Press, Toyota Motor Sales' executive vice president and chief operating officer.

Industrywide, October sales were expected to top last year's sluggish levels, when a sputtering economy and fears of a war with Iraq hurt business. Sales last October fell nearly 30 percent from record highs in 2001.

But last month's volume was forecast to be well below the levels of August and September, when the introduction of 2004 models and a barrage of incentives on '03 models sparked a summer selling craze.