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U.S. auto sales mixed; road in '08 may be rocky

Even as sales of small cars rise, automakers see a slowdown. Two are cutting production.

DETROIT - Automakers reported mixed U.S. sales results for November on Monday, with some new or more fuel-efficient models performing well despite consumer malaise over high gas prices and the weak economy.

But even with rising sales of small cars and crossovers, the industry is predicting things will get worse in 2008. General Motors Corp. said Monday it is cutting scheduled first-quarter production by 11 percent, while Ford Motor Co. said it would cut scheduled production by 7 percent. Ford's top U.S. sales analyst, George Pipas, said the automaker is predicting sales will be at their slowest pace in a decade in the first half of 2008.

GM, the biggest automaker by U.S. sales, said its November sales dropped 11 percent, hurt by falling demand for trucks as well as cuts in sales to low-profit rental car fleets, while Chrysler LLC said sales fell 2 percent. Ford and Toyota Motor Corp. both reported flat sales for the month. Honda Motor Co.'s sales were up 5 percent while Nissan Motor Co.'s sales rose 6 percent.

"Rising fuel prices and sliding home values delivered a one-two punch this month," Jim Lentz, executive vice president of Toyota's U.S. sales arm, said in a statement. "But the industry's not down for the count. Demand for fresh, more fuel-efficient products continues to show strength."

GM's November truck sales fell 15 percent, a casualty of the slowing pace of new home construction, while car sales declined 4 percent. GM said it also cut sales to low-margin rental fleets by 29 percent compared with last November. GM's sales were down 6 percent for the first 11 months of the year.

Mark LaNeve, GM's vice president of North American sales, service and marketing, said GM wasn't competitive enough on its incentive spending for 2008 model year pickup trucks. Edmunds.com, the automotive information site, said GM spent an average of $3,136 per vehicle on incentives in November, lower than Ford and Chrysler but above its Asian rivals.

"We will make sure we vigorously defend our truck position," LaNeve said.

Ford's November results ended a yearlong string of losses. Every month of this year, Ford's sales compared badly to 2006, when it was still selling thousands of its old Taurus sedans to rental fleets.

FordanalystPipas said the automaker is on track to cut rental-fleet sales by 143,000 in 2007, or more than 30 percent.

Ford said its car sales fell 2 percent but truck sales rose 2 percent, largely on the strength of the Ford Escape small sport utility vehicle and Ford Edge crossover. Ford's sales dropped 12 percent for the first 11 months of the year.

Toyota continued its drive to overtake Ford this year as the No. 2 automaker by sales, outselling Ford by nearly 15,000 vehicles. Toyota's sales were flat for the month compared with last November, with a 4 percent increase in car sales offset by a 5 percent drop in sales of trucks and sport utility vehicles. Toyota's sales increased 4 percent for the year.

Chrysler's car sales shot up 41 percent, led by the new Sebring convertible as well as the Dodge Charger and Avenger. Those sedans helped lift Dodge's car sales by 75 percent for the month, Chrysler said. But Chrysler's truck sales were down 13 percent, and the company's sales were off 3 percent for the year.

Honda's car sales rocketed up nearly 20 percent on the strength of the new Accord sedan and the subcompact Fit, which saw sales double over last November. But the automaker's truck sales fell 11 percent. Honda's sales rose 3 percent for the first 11 months of the year.

Nissan said its sales rose largely on the strength of the new Rogue crossover and the Versa subcompact, which saw sales surge 67 percent. Nissan's car sales increased 11 percent, but truck sales were flat.

[Last modified December 3, 2007, 23:59:54]