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Auto sales leveling off

The Associated Press

Published: July 2, 2009

DETROIT - Sales at Ford and Chrysler last month offered sharply different views on the downtrodden U.S. market for cars and trucks, while General Motors Corp. held its own even though it entered bankruptcy protection.

Ford's June sales showed signs of stabilization, as the healthiest Detroit automaker posted its smallest sales decline of the year at 10.7 percent. It also said it gained market share.

Chrysler Group LLC, just weeks after exiting bankruptcy protection, reported a 42 percent drop in sales, hurt by a big cut in fleet sales and declines in all its models except the Dodge Challenger muscle car.

GM reported a 33.4 percent sales drop, slightly larger than the 30 percent drop it reported for May before it entered bankruptcy protection. GM plans to sell or close Pontiac, Saturn, Hummer and Saab to focus on four core brands - Chevrolet, Cadillac, GMC and Buick.

June sales from other automakers indicated that the industry downturn has begun leveling off. Toyota's U.S. sales fell 32 percent in June to 131,654 units - a smaller decline than in previous months for the Japanese automaker.

Analysts predict that June sales, adjusted for seasonal variances and multiplied to determine an annual rate, will top the 10 million mark for the first time this year. During several months earlier in 2009, U.S. car and truck sales dropped to a rate of about 9 million vehicles, a huge reduction from more than 16 million as recently as 2007.

Nissan Motor Co., the No. 3 Japanese automaker, also enjoyed a better month. Its sales fell 23 percent, to 48,298, in June on sales declines of its top-selling Altima sedan.

Dearborn, Mich.-based Ford Motor Co.'s monthly decline was Ford's smallest since July 2008, a sign of life amid the worst slump in 27 years. Ford sold 154,873 cars and light trucks last month, with strength in its midsize Fusion and the Flex crossover vehicle.

Ford is the sole U.S. automaker to avoid bankruptcy protection and it's the only one not receiving government loans to keep from running out of money.

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