Domestic Auto Makers’ Sales Drop 18.5% in Early August
Domestic auto makers reported Tuesday that sales of their North American-made cars and trucks plummeted 18.5% during early August, compared to last year.
Sales of North American-made cars with Japanese company nameplates rose 11.5% despite a 15.7% drop in Honda sales. Company spokesman Jeff Leestma said supplies of domestic cars were short.
Ward’s Automotive Reports said in Monday’s editions that at the end of last month, Honda had a 20-day inventory of unsold cars, considered low for this time of year.
Car sales by General Motors Corp., Ford Motor Co. and Chrysler Corp. dropped 24.3%, led by a 38.6% decline in Chrysler car sales in the first 10 days of August. During the same time last year, the company offered double rebates on its Plymouth Sundance and Dodge Shadow cars, boosting the 1989 figure.
Ward’s said dealers had a 55-day supply of all domestically made cars and a 71-day supply of light trucks on hand at the end of July.
The 10 major companies making cars and trucks in North America said their vehicle sales fell to an average daily rate of 27,419 during the Aug. 1-10 period this year, compared to a daily average of 33,660 during the same time last year.
Car sales dropped 20.7% and truck sales were off 14.9%.
Sales during early August last year were strong as auto makers began enhancing existing incentive programs to clear out dealer lots of 1989 models to make room for 1990 cars and trucks.
This year, incentive packages still were being offered, but they covered fewer vehicles and offered generally smaller cash rebates. Earlier this year, auto makers sharply reduced inventories and have held them in the 60-day range for the past several months.
So far this year, car and truck sales by the domestic auto makers were running 3.6% behind last year’s pace. Car sales were down 4.8% and truck sales were off 1.5%.
VEHICLE SALES
Aug. 1-10 % change 1990 year to year GM* 107,429 -20.6 Ford* 82,619 -14.9 Chrysler* 33,006 -31.1 Honda U.S. 7,617 -15.4 Mitsubishi U.S. 891 -18.6 Nissan U.S.* 4,264 -33.9 Toyota U.S. 8,573 +64.3 Mazda U.S. 1,624 +105.8 Subaru U.S. 557 ** Isuzu U.S.* 192 ** TOTAL 246,772 -18.5
* Includes light truck sales.
* No comparison possible.
There were 9 selling days in the selling period this year and last year.
