AUTOMOBILE INDUSTRY GM, Ford report drops in car sales

Sales took a tumble for all three domestic automakers, figures show.
STAFF/WIRE REPORTS
DETROIT -- Sales of cars made at General Motors' Lordstown Assembly Plant fell in November.
Bill Lovejoy, group vice president of GM's North American sales and marketing, said, however, that sales were down for the company as a whole because the first zero-percent financing offers spurred strong sales in November 2001.
"Our sales remain generally healthy. Importantly, we continue to improve our vehicle mix in an extremely competitive market," he said.
Chevrolet sold 12,479 Cavaliers in the United States last month, which was down 12 percent from the same month last year. For the first 11 months of this year, Cavalier sales are at 219,867, up less than 1 percent.
Sales of the Pontiac Sunfire, also built at Lordstown, were 2,221 last month, which was down 36 percent. For the year, Sunfire sales are 59,512, which is down 13 percent.
Overall, GM sales were off 18 percent, while sales at Ford Motor Co. were down 21 percent. DaimlerChrysler AG's Chrysler Group saw sales drop 12 percent.
Looking back
Ford, GM and Chrysler all had difficulty matching sales tallies for last November, when no-interest loans and other incentives were new and sparked consumers. Still, this November's numbers were in line with most analysts' updated forecasts.
Early predictions were somewhat grim after weak sales in October and a poor start in November, but rising consumer confidence and slightly higher incentives provided an end-of-the-month lift, dealers and analysts said.
"The first half of the month was extremely difficult," said Gary Dilts, the Chrysler Group's senior vice president for sales. "But it finally turned positive and we saw a significant shift."
Merrill Lynch analyst John A. Casesa said in a report Tuesday he expects incentives to increase in December as automakers strive to meet year-end market-share targets.
GM, Ford and Chrysler all saw their shares tumble Tuesday. Ford had the sharpest decline after the company announced it would trim its production schedule for the fourth quarter to meet year-end inventory targets.
On the New York Stock exchange, Ford shares fell 13 percent, or $1.49, to close at $9.96. DaimlerChrysler's U.S. shares were off $1.82, or 5.1 percent, to close at $33.75. GM shares also lost 5.1 percent, falling $2.05 to close at $37.90.
GM's car sales were off 6 percent compared with the same month in 2001, while light truck sales -- including pickups, sport utility vehicles, vans and minivans -- dropped 26.2 percent.