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Big Three US automakers report lower sales
By Andrei Postelnicu in New York
Updated: 10:42 p.m. ET Dec. 1, 2005


The top US automakers reported declines in November sales compared to last year, as aggressive discount schemes failed to revive demand, but results were better than October's dismal figures.

Ford Motor suffered a 14.8 per cent drop in November sales while General Motors, its larger rival, saw an 11 per cent fall. Chrysler, the smallest of Detroit's Big Three auto groups, reported a 3 per cent decline compared with last year.

The figures come just as all of the companies have introduced aggresasive discount programmes in a bid to stimulate demand that has suffered from spiking fuel prices earlier this summer.

Industry watchers have fretted about the leading US carmarkers' inability to make profits and grow sales in the absence of margin-crunching discount schemes. The concerns have been compounded by the positive sales results enjoyed in the US markets by foreign automakers.

The tabular content relating to this article is not available to view. Apologies in advance for the inconvenience caused.Toyota, the Japanese automaker, added insult to Detroit's injury by reporting a 10.3 per cent rise in November sales on the back of an all-time record sales for the month in both its namesake and Lexus luxury division.

Both Ford and GM reported sharp falls in light truck sales, in a reflection of decreased consumer appetite for the gas-guzzling sport-ultity-vehicles and pick-up trucks.

At Ford, truck sales declined 18 per cent while GM reported a 16.8 per cent decline in the category. Cars fared better, showing a decline of only 7 per cent for Ford and of 2.7 per cent for its larger crosstown rival.

Meanwhile all but one of Ford's brands saw declines, with Jaguar suffering the worst fall.

Ford's Jaguar subsidiary in the UK sufffered a 40.7 per cent decline in sales in November, fuelling speculation that Ford might restructure Jaguar or even sell it. So far this year, Jaguar sales have declined by 34.1 per cent compared to the same period in 2004.

Land Rover was the only Ford brand that saw gains in sales in November, notching an 18 per cent advance that bucked a sharp decline for all the other five brands. Land Rover sales rose by 30.8 per cent so far this year from the comparable period in 2004.

Ford trimmed its fourth-quarter truck output by 3.7 per cent and its overall first-quater output by 2.5 per cent.


Copyright The Financial Times Ltd.