So Far in May, Toyota Struggles as GM, Nissan Sales Rise, Edmunds.com Reports
By Michelle Krebs May 20, 2010Early May car sales indicate sales for Toyota Motor are down 15 percent for the same period 
last month despite aggressive incentives, according to an analysis by Edmunds.com, which also noted General Motors and Nissan sales up from a month earlier.
"Toyota's incentive program is falling on deaf ears. Most people who were open to getting deals from Toyota already made their purchases," said Edmunds.com Senior Analyst Jessica Caldwell. "Toyota has not yet recovered from recent image problems."
Indeed, the month is far from over. The final days of the May fall on the three-day holiday weekend of Memorial Day, generally brisk for vehicle sales.
Edmunds.com is forecasting May's Seasonally Adjusted Annual Rate of Sales (SAAR) will come in at 11.4 million vehicles, based on the current May sales pace and a strong holiday weekend. While only the automakers know how many fleet sales they have in a month, retail sales, if they follow the usual May sales pattern, will increase about 6 percent from April and about 28 percent from May 2009, Edmunds.com estimates.
The May 2010 SAAR should represent a significant improvement over May 2009 when the SAAR was a measly 9.85 million and up from April's 11.19 million. In fact, May, if forecasts prove correct, would be the second highest month for SAAR thus far in 2010 second only to March when it stood at 11.76 million.
Edmunds.com predicts sales for all of 2010 will come in at about 11.5 million vehicles.
Lexus Buoys Toyota
Though Toyota sales are down from last month, they are are up 22 percent from last May, a dismal month.
Toyota brand retail sales are down even more than the 15-percent decline for the automaker's total sales. The Toyota brand saw a 20-percent decline in retail sales from the month earlier.
Toyota Motor's total sales are being buoyed somewhat by Lexus sales, thanks to its "Unprecedented Access" promotion that offers low financing rates and special lease offers, which are credited for increasing Lexus sales by 12 percent in early May compared with April.
Customers putting Toyota brand vehicles on their shopping list has dropped as well. Last spring, 37 percent of Edmunds.com visitors who researched one of Toyota's main competitors also checked out a Toyota branded vehicle. That "reverse cross-shopping" rate is currently averaging only about 30 percent
Other Movers and Shakers
GM was a major mover in the early going in May. GM had a 9-percent rise in retail sales from April and a 24-percent increase from May 2009. Nissan had 10-percent higher sales in the early going of May compared with April.
Ford told the Wall Street Journal that F-Series pickup truck sales will be up 30 percent from May 2009 ojn the strength of the new 2011 Super Duty. -- Michelle Krebs, Senior Analyst and Editor at Large
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Interesting article but one request for Edmunds. Please only compare a month against the same month last year. So May 2010 against May 2009. Comparing to the previous month is an apples to orange comparison because of the well known seasonal nature of the business.
Most business state their growth (or loss) on a year to year comparison. Please do this. I don`t care how May 2010 compares to April 2010 since they are different months. The May 2010 vs May 2009 is much more informative.
The days of Toyota coasting on its 'high quality' image and getting buyers deathly afraid of buying a new car are over.
In the 90's, early 00's, all over Edmunds forums it was 'the only good car is Toyota Camry/Corolla, they never break down...' Now, other makes have caught up and quality is even. The 1995-2002 Toyotas that were supposed to 'last forever' are dying, rusting, crumbling.
People realize no car "lasts forever", and there are other choices, and no need to throw $$ into Toyota dealers' pockets out of fear.
its not so much about lingering image problems for Toyota. Its about a mediocre lineup. The recall fiasco has opened people's minds and they are checking out the competition. Once they do that, they see Toyota's arent that impressive. I believe most folks now believe Toyotas are safe but that doesnt mean they want to buy a Toyota. Once you rely on incentives to sell your product you are selling the deal more than the car and that makes you look desperate. Ask the Detroit automakers, they know all too well. Toyota is facing a struggle for the rest of the year because they have no new product hitting dealers in 2010 and the competition isnt sitting still. You can just try to push average produce on people by beating people over the head with your quality message.
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