September Sales: Weaker But New Models Showed Strength

September Sales: Weaker But New Models Showed Strength

Automakers reported weak September vehicle sales against a backdrop of continued economic headwinds. Still, some automakers -- especially those with new models -- fared better than those without new wares.

General Motors, Nissan and Honda reported gains; Ford, Toyota and Chrysler saw declines. Total industry sales in September ran at a seasonally adjusted rate of 16.23 million units compared with 16.6 million in September last year.

"This month was pretty much in line with what we expected," said Jesse Toprak, executive director of Edmunds.com's industry analysis. "Auto manufacturers that saw the most gains had new or freshened models -- GM with the Cadillac CTS and new crossovers, Honda with the Accord, Nissan with the Altima."

One surprise, Toprak noted, was the strength of the luxury segment, surprising because of weakness in the housing market, higher gas prices and the interest rate crunch. "Those factors didn't affect buyers of new luxury vehicles," Toprak noted.

GM, Ford and Chrysler captured 52.3 percent market share in September, down from 55.1 percent in September 2006 and up from 52.1 percent in August.

Sept. Market Share for Big 6 Automakers
GM        25.6%
Ford      14.4%
Chrysler  12.2%
Toyota    16.3%
Honda      9.2%
Nissan      7.2%

Here's a company-by-company rundown by Edmunds.com's industry analysts of the good, the bad and, in some cases, the ugly in sales.

GENERAL MOTORS

GM sold 337,640 vehicles in September, up 4 percent compared with a year ago. Retail deliveries totaled 255,274 vehicles up more than 7 percent; fleet sales were down 6 percent.

Calling the month "comforting," Paul Ballew, GM's director of global market and industry analysis, noted in the monthly sales call that September marked the second consecutive month in which GM bucked the industry's downward trend. Strong retail sales of full-size trucks, new crossovers, the Cadillac CTS and the Chevrolet Cobalt boosted GM sales.

The Good

Sales were up 4 percent from last September. Light truck sales were up 8 percent. GM continued to reduce fleet sales; they were down 6 percent this September.

GM's new crossovers continue to be strong. Combined sales of the Buick Enclave, GMC Acadia and Saturn Outlook totaled nearly 13,000 vehicles.

GMC and Saturn posted increases in September from last September and are up for the calendar year to date.

GMC saw sales rise 19 percent in September, putting it 5 percent ahead for the calendar year to date. The Acadia crossover, which hit sales of 6,023 vehicles in September, led the charge.

Saturn sales were up 7 percent in September, putting it 12 percent ahead of 2006 for the calendar year to date. The newly redesigned Vue, which had sales of 7,218 for the month, and the Aura sedan, which had 6,221 sales in September, gave Saturn a boost.

Chevrolet and Cadillac enjoyed increases in September as well; Chevrolet sales were up 6 percent and Cadillac sales rose 5 percent over September a year ago. Sales of the just-introduced 2008 Cadillac CTS, vastly redesigned, soared 74 percent, and are in short supply due to strong demand, Ballew said. September marked the best month for the CTS in 2007.

GM's full-size sport-utilities and full-size pickups posted significant gains: Cadillac Escalade, up 22 percent; Chevrolet Tahoe, up 58 percent; Chevrolet Silverado, up 2 percent; GMC Yukon, up 34 percent; GMC Sierra, up 9 percent.

GM also is making gains in small cars: Chevrolet Cobalt, up 35 percent; Chevrolet Aveo, up 3 percent; Pontiac G5, up 61 percent.

The Bad

Though GM bucked the industry's downward trend in August and September, its calendar year-to-date sales remain weak. Total GM sales for the year so far are down 7 percent with total light vehicle sales down 5 percent and light truck sales off 7 percent.

Hummer is struggling, with sales down 22 percent in September and off 20 percent for the year to date.

Though the Cadillac sales were up overall in September and CTS sales were strong, Cadillac's other models saw double-digit drops, and the CTS for the year is down 11 percent. The CTS may well be cannibalizing sales of other Cadillac models as consumers downsize.

Saab sales were down 18 percent, putting them 7 percent lower for the year. The 9-7X sport-utility had sales 33 percent lower than a year ago; 9-5 sales were off 40 percent from September a year ago.

Strong Buick Enclave sales aren't enough to pull the division out of the doldrums. Buick sales for September were down 5 percent, though retail sales were up 6 percent. For the year to date, Buick sales are 25 percent lower.

Similarly, despite soaring G5 sales, Pontiac sales were down 12 percent in September, putting them at 14 percent lower for the year to date.

FORD

Ford had sales of 189,863, down 21 percent from a year ago. Daily rental sales, which Ford is intentionally trying to decrease, were down 62 percent; retail sales were down 15 percent.

“We weren’t quite up to par,” said George Pipas, Ford’s chief of U.S. sales analysis said in the sales conference call. Still, he noted that Ford is on track to meet its targets for retail sales, market share and retail market share. Pipas also said Ford is likely to slash fleet sales in 2007 even more than the 130,000 units it had promised at the beginning of the year.

The Good

Sales of Ford’s crossovers nearly doubled in September; specifically, sales rose 96 percent. That puts Ford’s crossovers up 52 percent for the calendar year to date.

The Ford Edge had sales of 11,632 vehicles in September and the Lincoln MKX had sales of 3,805. Both had their highest retail sales months to date. Pipas said the Edge is selling beyond Ford’s high expectations and has been the best-selling midsize crossover in three of the past four months.

Sales of the redesigned 2008 Ford Escape and Mercury Mariner crossovers also were up. Escape sales hit 11,132 vehicles, up 10 percent from September 2006. Mariner sales were 2,699, up 4 percent.

The Lincoln brand, with its new portfolio of products, is a bright spot within Ford, posting its 12th consecutive month of higher retail sales. Lincoln sales in September were up 33 percent over a year ago, putting them 15 percent higher for the calendar year so far.

Land Rover, which is up for sale, also is a highlight for Ford. On the strength of the new LR2 crossover, its sales were up 21 percent in September and 8 percent for the year thus far.

Despite stabilized high gas prices, the Ford Expedition saw an increase of 18.3 percent in calendar-year-to-date sales.

The Bad

Ford sales were down 21 percent from last September and off 13 percent for the year so far. Ford’s car sales were down 39 percent in September; truck sales were off 9 percent.

Ford division sales are off with only the Escape, Fusion and Edge showing an increase from last September. The Fusion’s success isn’t rubbing off on its twin, the Mercury Milan, which saw a 21-percent sales decrease.

Ford’s bread-and-butter F-Series sales were down. This is the last year of the current-generation F-Series.

The Ugly

Name changes have not helped the Ford Taurus and Taurus X or the Mercury Sable. All suffered enormous sales declines from when they were previously known as the Ford Five Hundred and Freestyle and Mercury Montego, respectively.

Jaguar, also up for sale with Land Rover, continues its slide. Sales were down 9 percent in September and 27 percent for the calendar year to date.

Declining sales may seal the fate for Volvo. Ford management is in the process of evaluating whether to keep Volvo or sell it. Volvo sales dropped 13 percent in September and are down 10 percent for the year. Volvo hopes the introduction of the small C30 gives the Swedish brand a lift.

Daily rental sales are down 62 percent –- and will be reduced further, Ford says, but at a cost to Ford’s total sales and possibly business.

CHRYSLER

Chrysler saw sales drop 5 percent in September, selling 159,799 vehicles. Chrysler attributed some of its fall to its intentional lowering of fleet sales in the second half of this year.

The Good

Chrysler car sales are up –- 3 percent in September and 19 percent for the calendar year to date.

In particular, the Chrysler Sebring is doing particularly well. It posted sales of 6,057 in September, a 264   percent increase compared with September 2006 and up 46 percent for the year so far.

The Aspen, Chrysler’s version of the Dodge Durango that has been an underperformer from the start, had a sales increase of 8 percent in September from August.

The Jeep Wrangler and Wrangler Unlimited continued to sell well, with combined sales up 71 percent in September over a year ago. Strong Wrangler sales have pushed Jeep sales 8 percent higher for the year so far.

Dodge sales also increased –- 5 percent in September -– though they are down 3 percent for the year thus far. September gains were led by the Dodge Ram, which saw a 20 percent increase, and the new Dodge Nitro, sales of which were up 2 percent over August.

Chrysler’s inventory, bloated at this time last year wreaking havoc on the automaker is at a 71-day supply down 15 percent from a year ago and about where an automaker wants to be.

The Bad

Total Chrysler sales are down --- 5 percent in September and down 3 percent for the year to date.

Chrysler brand sales are down; 18 percent for September and 10 percent for the year. They are being pulled down by lower truck sales, which were off 11 percent for September and 5 percent for the year to date.

The Jeep brand, though up for the calendar year to date, was off 11 percent in September.

The Dodge brand, despite September’s sales rise, is off for the year to date by 3 percent.

In September, Chrysler only saw a sales rise from five vehicles in its entire portfolio, those being the Chrysler Sebring and Aspen, the Dodge Ram and Nitro and the Jeep Wrangler models.

TOYOTA

As expected, Toyota reported September sales of 213,043 vehicles, down 0.6 percent compared with the automaker’s best ever September in 2006.

The Good

Toyota’s year-to-date sales are up 3.8 percent to 2,001,646 vehicles.

Toyota has surpassed Ford to gain the No. 2 sales spot for September behind GM.

Toyota division sales are up 3.7 percent for the year.

Toyota’s passenger car sales were led by Camry, which posted its best ever September with sales of 40,438 units. That a 10 percent increase for September and 7 percent rise for the year to date.

Other sales highlights for the Toyota division were:

Camry Hybrid sales of 4,196 units in September, up 8 percent;

Prius hybrid sales that posted their best-ever September with 12,494 units sold, up 24 percent for the month and 69 percent for the year to date.

Truck sales led by the Tundra, posting their best ever September with sales of 19,571 vehicles, up 61 percent for the month and 58 percent for the year to date.

Toyota RAV4 sales that were the best ever for a September at 14,412 units, up 30 percent for the month and 14 percent for the year.

Lexus sales edged 1.6 percent higher in September and 4.3 percent for the year. Lexus cars posted their best-ever September sales of 15,131 units, up 11 percent in September and 14 percent for the year to date. The ES 350 had its best ever September with 6,491 sales, up 15 percent for September and the year to date.

In total, Toyota and Lexus hybrid sales hit 208,187 units, up 44 percent for the year.

The Bad

Toyota has seen sales drops in the past couple of months, albeit September sales were compared to Toyota’s best ever September in 2006.

Weak spots are the Toyota division, with sales down 0.9 percent from last September and its car sales down 1 percent from a year ago with only Camry and Prius recording increases.

Even weaker are Toyota and Lexus SUV sales. Toyota Division SUVs were down 5.5 percent in September with double-digit decreases from Land Cruiser, Sequoia, Highlander and FJ Cruiser. The Sienna minivan also had a double-digit decrease. Lexus SUVs are down as well -- 10 percent in September and 9 percent for the year to date.

In an industry in which small cars are hot, they are not Toyotas. Sales of the Yaris, which competes against the red-hot Honda Fit, were down 18 percent in September, though they are up 32 percent for the year.

The once-hot Scion brand is less so despite its new models, including the xB. All Scions saw a sales decline in September and for the year, except for the newly launched xD. Some critics feel the Scion brand has gone too mainstream and the quirky xB specifically has been too "Camryized."

HONDA

Honda not only bucked the industry trend, reporting higher sales; it posted record September sales. 

The Good

Honda and Acura sales in total were up 13.8 percent in September, pushing Honda sales in total 2.8 percent higher for the year.

Both car and truck sales rose. Honda/Acura car sales were up 11.5 percent in September and 1.9 percent for the year. Truck sales were up 17 percent in September and 4.1 percent for the year.

Honda Division sales were up 17.5 percent, pushing calendar year sales 4.5 percent higher. The redesigned Accord is off to an excellent start, with sales up 31 percent for the month. The red-hot Fit was up a whopping 139 percent in September. On the truck side, the CR-V led the way with sales up 69 percent in September. The CR-V, now the best-selling SUV in America, is outselling the Toyota RAV4 by 5,000 units a month.

Acura truck sales were led by the MDX, which were up 34 percent in September and 15 percent for the year. RDX sales helped out in September with a 19 percent increase in sales.

The Bad

Within the Honda line, Civic sales were down 2.2 percent. It may be suffering from success from the bookends of the Fit and the Accord. In contrast to the continued success of the Toyota Prius, the Civic Hybrid is struggling; sales were down 13 percent for the month and 2 percent for the year.

The Ugly

The Acura division is struggling. Sales were down 8.4 percent in September, about the same as for the calendar year to date. The MDX and RDX saved Acura from a more disastrous month as Acura cars -– the TSX, TL and RL -– posted decreases for September and the year as well.

The Honda Pilot likely is feeling the pinch of higher gas prices and old age, with sales down 36 percent in September and 20 percent for the year to date.

NISSAN

Nissan reported sales of 94,269 units in September, up 11 percent from the prior September.

The Good

The fact that Nissan is running counter to the industry in total as are its individual Nissan and Infiniti divisions for the month and year to date are huge pluses.

Nissan North America sales were up 11 percent for September and 4.7 percent for the year. Nissan Division sales were up 12.1 percent in September and 4.5 percent for the year. Infiniti sales were up 2.7 percent in September and 6.3 percent for the year.

Nissan car sales are up significantly -– 22.6 percent in September and 17.4 percent for the year. Nissan car sales are being led by the Altima, which had a 23 percent increase to 27,871 units in September. The little Versa also remains strong, showing a 56 percent increase in September.

The public is accepting Infiniti’s evolutionary restyling of the G line. Sedan sales rose 24 percent in September and coupe sales were up 34 percent for the month.

The full-size Infiniti QX56, thanks to heavy incentives, saw sales increase 33 percent in September, pushing year-to-date sales 3 percent higher.

The Bad

Not all models are benefiting from Nissan’s sales rise. In September, only four Nissan vehicles posted sales increases: Altima; Versa; Pathfinder; and Armada (which was up a scant 0.7 percent).

The Altima’s success carries a price in that it is carrying the load for Nissan. Altima sales in total were higher than the entire rest of the Nissan car lineup. That’s a poor balancing act.

While small cars as a segment are strong and the Versa is performing well in the segment, the new Sentra is not. Its sales were off 14 percent in September and 11 percent for the year.

Both Nissan and Infiniti truck sales were down. Nissan truck sales were off a 0.8 percent in September and 9.3 percent for the year. Infiniti truck sales were down 19 percent in September and 4 percent for the year. Infiniti truck sales would have been down more had it not been for heavy incentives that buoyed QX56 sales up.

Michelle Krebs:  is Editor-in-Chief of AutoObserver.com. Follow @AutoObserver on Twitter.