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Move Over, Ford: Toyota Is Now No. 2 In U.S. Sales

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By DEE-ANN DURBIN, The Associated Press

Published: January 4, 2008

DETROIT - Toyota Motor Corp. overtook Ford Motor Co. to become the No. 2 automaker by U.S. sales in 2007, using new products and relentless strategy to break Ford's 75-year lock on the position.

Toyota sold 2.62 million cars and trucks in 2007, which amounted to 48,226 more than Ford, according to sales figures released Thursday. Toyota's sales were up 3 percent for the year, buoyed by new products such as the Toyota Tundra pickup, which saw sales jump 57 percent.

Ford's sales fell 12 percent to 2.57 million vehicles.

General Motors Corp. remained the U.S. sales leader, selling 3.82 million vehicles in 2007. But that was down 6 percent from the previous year as customers turned away from some large sedans and sport utility vehicles, and GM cut low-profit sales to employees and rental car agencies.

GM's car sales fell 8 percent for the year, and truck sales were down 4 percent.

Overall, the year was expected to be the worst for the auto industry since 1998 as consumers fretted over high gas prices, falling home prices and the economy.

December also was a tough month for automakers despite a slew of holiday discounts. Toyota's sales slipped 2 percent for the month, GM's sales were down 4 percent and Ford's fell 9 percent.
Nissan Motor Co.'s sales in December were down 2.4 percent, and Honda Motor Co.'s sales were flat, with a 10 percent increase in car sales canceled out by a 10 percent decline in truck sales.

"This was definitely a challenging year to be in the car business, and 2008 isn't likely to be a piece of cake," Dick Colliver, executive vice president of American Honda, said in a statement.

Colliver said automakers with more fuel-efficient offerings fared better as gas prices took their toll.

Honda's full-year sales were up 2.5 percent, thanks in part to booming sales of the Fit subcompact, and Nissan's shot up 5 percent thanks to strong sales of the Versa subcompact.

Chrysler LLC also had a solid December, with sales up 1 percent for the month thanks to brisk sales of the new Dodge Caravan minivan, which saw a 51 percent jump. Chrysler sales were down 3 percent for the year as falling truck and SUV sales erased gains on the car side.

Ford's car sales plummeted 24 percent for all of 2007 as some models such as the Ford Mustang aged and a new Ford Taurus sedan was unable to match the volumes of the older version.

Ford also cut rental-car sales by 32 percent over the year. Truck sales were down 5 percent.

Ford shares fell 15 cents to $6.45. GM shares lost 49 cents to $23.92, and Toyota's U.S. shares rose 44 cents to $106.90.

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