Honda Sets its Sights on No. 3 Automaker

• SEE ALSO: OOPS! - Toyota Outsells GM

Washington DC July 28, 2008; The AIADA newsletter reported that U.S. auto makers on Friday will report vehicle sales for July, and another substantial decline is expected.

In the battle for top spot, Toyota is nipping at the heels of longtime leader General Motors. But GM has been propping up sales with heavy incentives, which should enable the company to remain No. 1, at least for now.

The more telling development this week and in the months ahead, however, could be the race for Number 3. According to the Wall Street Journal, Honda Motor Co. is the only major car company that guessed right on gasoline prices and geared up in the past few years to sell small cars.

As a result, Honda's sales have surged. In June, it passed Chrysler to become the fourth-largest auto maker in the U.S. for that month. In July, it will likely beat Chrysler again and edge closer to the No. 3 player, Ford.

Over the first half of 2008, Honda sold nearly 100,000 more passenger cars than Ford, and it is poised to gain more ground. July car and light-truck deliveries are now tracking to finish 12 percent lower than the same month period in 2007, according to J.D. Power & Associates.