October Car Sales: The Highs, The Lows
November 05, 2007

October car sales represented more of the same weakness seen in recent months.

Sales on a seasonally adjusted basis came in at 16.05 million vehicles, down from 16.35 million in October a year ago.

“There was nothing new this month, as we saw General Motors and foreign automakers continue to succeed,” said Jesse Toprak, executive director of Industry Analysis for Edmunds.com. “Ford did better than expected because of its new products, mainly crossovers, and Ford has been able to hold on to its truck buyers, even with an aging product.

“We’re expecting that sales will continue to be sluggish for the rest of the year, and November has typically been a slow month for automakers,” he added.

October Market Share for Big 6 Automakers
GM           25.0%
Ford        15.8%
Chrysler   11.8%
Toyota      16.1%
Honda        9.3%
Nissan        6.9%

GENERAL MOTORS

The Good

For the third consecutive month, GM recorded a year-over-year monthly sales increase. In October, GM’s sales were up 3 percent over October a year ago on an unadjusted basis.

Cadillac was a highlight, being up nearly 20 percent from a year ago, though the luxury make is down 5.8 percent for the calendar year to date. Cadillac’s strength came from the newly launched CTS, which saw sales rise 74.5 percent for the sedan's best-ever sales month. Paul Ballew, GM’s top analyst, said CTS sales could best be described as "blistering." GM has a scant 20-day supply of the CTS since they sell as fast as they arrive at the dealership.

Chevrolet sales rose a tad in October, though they are down for the year. Chevrolet’s small cars are selling well, in part, because GM has put incentives behind them. Aveo sales rose 58 percent in October; Cobalt sales were up 81 percent.

GMC sales were up 10 percent in October and are up nearly 6 percent for the year so far, largely on the strength of the Acadia crossover but also due to higher Yukon sales.

Speaking of GM crossovers, the Buick Enclave, GMC Acadia and Saturn Outlook combined had sales of more than 12,800 vehicles in October. GM’s Ballew says the Enclave continues to have a low 20-day supply as it has since it launched in the spring.

In contrast to competitors, namely, Toyota, GM is enjoying higher large SUV sales. Chevrolet Suburban sales were up 15.3 percent in October, and 16.5 percent for the year so far; Tahoe sales were up 26.8 percent in October, although down 5.4 percent for the year. GMC Yukon sales rose 22.1 percent in October, although they are down 5.6 percent for the year; Yukon XL sales climbed 8 percent in October, and are up 6.2 percent for the year.

The Bad

On an adjusted basis, GM sales were down 1.1 percent in October, and are off 5.9 percent for the year.

Despite the Enclave’s success, Buick sales were down 12 percent in October, putting year-to-date sales 23.4 percent lower.

Hummer sales were down 20.7 percent in October, and are off 33.2 percent for the year.

Pontiac had sales down 17.5 percent in October, and 14.1 percent for the year.

Saab sales were off 19.9 percent in October, and off 7.8 percent for the year.

Especially frustrating for GM must be the fact that despite a completely new product line, Saturn sales were down 5.9 percent in October, although sales for the year are 10.3 percent higher.

GM’s total truck sales were down for the month and the year.

In the full-size category, the Chevrolet Silverado was down 11.1 percent in October and is off 1.9 percent for the year. Its twin, the GMC Sierra, was down 7.4 percent in October and 1.8 percent for the year.

Likewise for GM’s smaller trucks. Chevrolet Colorado sales were down 22.6 percent in October and 18.4 percent for the year; GMC Canyon sales were down 14.9 percent in October, pushing year-to-date sales 10.6 percent lower.

FORD

The Good

October marked the 13th straight month of higher sales for Lincoln. Lincoln sales were up 17 percent in October and are up 15 percent for the calendar year to date. Mercury sales were also up in October by 25 percent, though they are down 9 percent for the year.

Ford’s best news is crossover sales. The Ford Edge and Lincoln MKX combined achieved their highest month of sales yet. Ford Escape scales jumped 27 percent in October, putting them 5.5 percent ahead for the year. Mercury Mariner sales rose 19 percent in October, pushing year-to-date sales 6.3 percent higher.

The Bad

As has been the case for sometime, Ford has more bad news than good. In total, Ford Motor Co. sales were down 9.5 percent, pushing year-to-date sales 13 percent lower.

Ford’s weakest area is cars. Total car sales were down 26 percent for October and the full year. Total truck sales were almost 1 percent in October and are down nearly 5 percent for the year.

Ford division saw a 13 percent sales drop in October, pushing year-to-date sales 15 percent lower. Ford’s car sales were down 32 percent in October and nearly the same for the year, largely because of Ford’s strategy to reduce fleet sales, which were down 38 percent in October. Still, Ford F-Series pickup sales are also down –- 7.5 percent for the month and 12.5 percent for the year.

Jaguar, up for sale along with Land Rover, continued to see sales plummet –- 25 percent in October and 27 percent for the year.

CHRYSLER

Little good news came out of Chrysler this week. On the day the automaker reported October sales, it also announced production cutbacks that will mean job losses for as many as 10,000 workers.

The few bright spots came in the form of some of Chrysler’s newer products.

The redesigned Chrysler Sebring sales skyrocketed 138 percent in October, putting them 51 percent ahead of a year ago. Chrysler Aspen sales rose 17 percent in October; Dodge Nitro sales were up 94 percent in the month. The newly launched Chrysler Town & Country had 26 percent higher sales this October than last.

Good news or bad, the only vehicles in Chrysler’s entire portfolio to post increases in October were: the Chrysler Sebring, Aspen, Town & Country, Jeep Wrangler and Dodge Magnum (being discontinued in 2008), Nitro and Sprinter.

The Bad

Those bright spots came amidst plenty of darkness as Chrysler reported total sales off 9 percent in October and 4 percent for the calendar year.

Jeep sales were down 21 percent in October and 5 percent for the year despite the fact that the Wrangler and Wrangler Limited are hot sellers.

Dodge sales were off 6 percent in October and 4 percent for the year. In particular, the Ram pickup saw a sales decline of 13 percent for the month and 1 percent for the year. The current Ram will be replaced with a new one in 2008.

Chrysler division sales were off 3 percent in October and down 10 percent for the year.

TOYOTA

The Good

Hit with plenty of bad news of late, Toyota found some good news in its October sales report.

Toyota Motor Sales had its best ever October with sales up 0.5 percent for the month, pushing it 3.5 percent ahead for the year. Toyota Division had its best ever October with sales 0.5 percent ahead of last October and up 3.4 percent for the year. Likewise, Lexus had its best ever October with sales up 0.6 percent for the month, pushing year-to-date sales 4 percent higher.

The Prius hybrid continues to thrive. Sales were up 44 percent in October and 67 percent so far this year. In October, it was the third best-selling car in Toyota’s line, behind the Camry and Corolla. So far this year, Toyota has sold nearly 90,000 Prius models.

In addition, RAV4 sales were up 26 percent for the month, pushing year-to-date sales up 15 percent. Tundra sales jumped 71 percent in October, putting them nearly 60 percent higher for the year.

The Bad

Toyota struggled in the large SUV category, likely due to high gas prices. Sales for the Sequoia, which is redesigned for 2008, were down 46.2 percent for the month and 31 percent for the year. Land Cruiser sales dropped 19.2 percent in October, and 28 percent for the year. The Lexus LX 470 saw a sales drop of 78.2 percent for the month and 51.4 percent for the year.

The Toyota Sienna minivan continues to do poorly as well. Sales were down 22.2 percent in October, pushing them 14 percent lower for the year.

HONDA

The Good

American Honda had its best ever October sales on an unadjusted basis. Its sales are up 2.5 percent for the year so far. Total car sales were up 9.8 percent in October and 2.5 percent the year so far, on the strength of Honda brand cars.

October represented yet another good month for the Fit, which had sales up 67.3 percent in October and 98.2 percent for the year so far. The new Accord had a good month as well, with sales up 25.8 percent, pushing them 9.7 percent for the year. The Civic also had a solid performance with sales up 7.3 percent for the month and 1.8 percent for the year.

Crossovers were the strength on the Acura side. In total, Acura SUV/crossovers were up 6.5 percent in October and are 43.8 percent for the year, due largely to the addition of the RDX. MDX sales were up in October as they are for the year.

The Bad:

Honda sales on an adjusted basis declined 0.2 percent in October. Honda’s truck sales are the weak spot: they were down 13.5 percent for the month and 1.3 percent for the year. Pilot, CR-V, Element and Ridgeline combined were off 21 percent for the month.

Acura car sales are down -– combined they were down 39.9 percent for the month and 30.7 percent for the year. Individually, every Acura car line is down for the year. RL sales were off a whopping 64.4 percent for the month and 47.7 percent for the year.

Honda hybrid sales were down for the month and are off for the year, in part due to the discontinuance of the Accord hybrid. Still, Civic hybrid sales were down 3.9 percent in October, putting them 2.3 percent lower for the year so far.

NISSAN

The Good

Nissan sales rose 8.8 percent in October, pushing the automaker head for the year by 5.1 percent.

Much of the automaker’s strength came from the Nissan division, which had 9.8 percent higher sales in October and 4.9 percent higher for the year. The little Versa takes much of the credit. Its sales were up 111 percent in October, pushing year-to-date sales ahead by 363 percent. In fact, the relatively new Versa trailed the long-established Sentra in October by just over 1,000 units. The Altima continued its momentum as well with sales up 41.9 percent for the month and 26.1 percent for the year.

The Infiniti division contributed with an October sales increase of 1.8 percent; sales this year are 5.9 percent ahead of last year. The G is doing the job for Infiniti. The sedan posted a 26.7 percent increase in October, pushing year-to-date sales 52 percent higher. The G coupe had a nearly 20 percent increase in October, though sales for the year are down nearly 24 percent.

The Bad

Both Nissan and Infiniti division truck sales were down. They would have plummeted further were it not for the newly introduced Rogue. The Infiniti QX56 was the only truck-type vehicle in Nissan’s entire line to post a sales increase in October as well as for the year so far.

GERMAN BRANDS

Mercedes-Benz recorded its best October sales: up almost 11 percent in October and 3 percent for the calendar year to date. Its sales were led by the all-new C-Class, which saw sales skyrocket by 102 percent in October, pushing them 23 percent higher for the year.

BMW reported a 9.6 percent increase in October sales, putting year-to-date sales 8.2 percent higher. BMW got a boost from the X5, sales of which were up 82.2 percent in the month and 18.9 percent for the year.

Audi sales climbed 15.4 percent in October for a 10 percent increase for the year. Every vehicle but the A8 and Q7 posted an increased in October. Audi notes its sales are strongest in Los Angeles, New York and Miami, where sales in those markets were at least 20 percent higher in October.

Porsche reported its second best October sales.

Posted by Michelle Krebs at 4:48 AM under Analysis , Chrysler , Ford , GM , Toyota | Comments (0) | digg this | Seed Newsvine