April 1, 2010
Automakers Report Rise in Sales, Helped by Incentives
DETROIT — Big discounts last month, led by Toyota’s efforts to overcome damage to its reputation from recent recalls, made March one of the best months in years for new-vehicle sales in the United States.
Toyota said Thursday that its sales increased 41 percent from March 2009. That compares with a 12 percent decline in January and February.
Sales of the models that Toyota has recalled since November rose 48 percent in March after dropping 11 percent the previous two months. Sales of two sport-utility vehicles on the recall list, the Rav4 and Highlander, more than doubled.
Toyota sold 558 more of the recalled models, which include the Camry and Corolla sedans, in March than in January and February combined.
“Toyota’s strong sales performance in March reflects our customers’ continued confidence in the safety and reliability of our vehicles and their trust in the brand,” Don Esmond, senior vice president for automotive operations for Toyota Motor Sales U.S.A. said in a statement. “We are standing by our cars, and we’re grateful that our customers are standing by Toyota.”
Nearly all automakers reported increases for March, and several analysts projected that total sales for the industry surged about 30 percent from a year ago.
The Ford Motor Company said its sales rose 40 percent. Ford’s sales rose 36 percent in the first quarter over all.
General Motors said sales of the four brands that it would continue to operate increased 43 percent and that its total sales rose 21 percent. Buick sales jumped 76 percent.
Sales of the four brands that G.M. is selling or closing fell 88 percent, as the inventory runs out.
Hyundai’s sales increased 15 percent. Chrysler’s sales dropped 8 percent, however.
Toyota, after recalling more than eight million vehicles worldwide as it tried to resolve complaints about unintended acceleration, focused on pushing sales last month with deals that it described as unprecedented. Toyota buyers could get zero percent financing for five years or low lease payments on many models.
G.M., Ford, Honda and Chrysler were among the other carmakers dangling no-interest loans in front of shoppers. But G.M. said its overall spending on incentives fell by 42 percent, or $2,000 a vehicle, from a year ago.
G.M.’s vice president for United States marketing, Susan Docherty, said a quarter of vehicles sold were new for the 2010 model year and came with very few discounts. G.M. does not want to begin relying on incentives again to artificially raise sales, she said.
“We’ve been down that road before and we know it’s a dead end,” Ms. Docherty said on a conference call. “It’s really important that we earn our market share. We’re not interested in buying it.”
Toyota, meanwhile, increased its incentive spending by 43 percent, or nearly $700 a vehicle, according to estimates from Edmunds.com. The offers seemed to be more successful than even company executives anticipated.
“February was tough, but once the new incentives came out it was good times again,” said Barry Jackson, the general manager of Sandy Springs Toyota, north of Atlanta. “Toyota has never been known for big incentives on their cars, so people are taking advantage.”
Mr. Jackson said his dealership moved 23 new vehicles on Wednesday, including two Prius hybrids to a man who had never owned a Toyota and originally came in looking for only one. “He ended up leasing two of them because the payments were so low,” he said.
Analysts expected the industry’s retail selling rate, which excludes bulk sales to rental car companies and other fleet operators, to be at the highest level since 2008, aside from the months in 2009 when the government’s cash-for-clunkers program suddenly increased demand.
LINK:
Auto Sales Rise, Helped by Incentives - NYTimes.com
Linear Mode
