Truck and SUV sales are dying, huh? Not so fast. New product and dramatically lower gas prices at the pump boosted sales of pickups and several big SUV models in October.
October auto sales have to be looked at with an eye toward last year, when October sales nosedived after heavy late-summer discounting pulled ahead a lot of sales. Even so, it wasn't bad for GM and Ford - and of course,Toyota.
GM posted a 17-percent percent gain in October light-vehicle sales, while Ford's sales were up eight percent. Both results were largely in line with analysts' expectations. Chrysler Group sales were down three percent.
Toyota sales were up 9.2 percent in October, while Lexus was up three percent. Honda was flat in October, though sales are up four percent on the year. Mazda was down three percent in October, but up three percent on the year. Hyundai sales were up four percent in October.
There were several compelling sales stories for individual models, especially redesigned cars and trucks. GM reported retail truck sales up 52 percent, led by a doubling of sales of its combined 2006 and redesigned 2007 Chevy Silverado and GMC Sierra pickup trucks, and a 46-percent gain in luxury SUV sales.
Ford's SUVs, especially the redesigned Lincoln Navigator (up 44 percent) and Ford Expedition (up 41 percent) are also benefiting from newness and lower gas prices. Meantime, Toyota's SUV sales were up 22 percent, and even the Sequoia was up slightly last month, though it's down on the year.
"What a difference a year makes," said Jim Lentz, TMS executive vice president. "Last October the industry plunged to a seven-year low, weaning itself from an incentive binge. Today the industry is seeing modest gains on the strength of fresh products."
GM and Ford have been restructuring to lower their costs and to build fewer vehicles to better match declining market share and consumer demand for their brands. The endgame is to lower reliance on heavy incentives, which kill residual and brand values.
Ford's results were a bit misleading. About five percent of its eight-percent sales gain came from expanded production of the Ford Taurus. Ford built and shipped about 10,000 more Tauruses than October of last year as it prepared to close its Atlanta factory and cease production of the once-popular model. But there was good news at the struggling company: retail sales were up five percent as sales of the Fusion, Focus, and Escape continued to rise. On Ford's luxury front, Jaguar and Volvo continued to decline, while Land Rover gained seven percent.
All of GM's brands were in the plus column except HUMMER.
Nissan sales were up four percent last month, though it's down on the year. Mercedes-Benz was up 12.2 percent. Volkswagen was down seven percent last year, having cooled off from a strong start. VW is up nine percent on the year so far.