AUTO INDUSTRY Cavalier sales jump, ending 5-month fall

GM and Chrysler had higher sales in June; Ford's volume was down slightly.
STAFF/WIRE REPORTS
LORDSTOWN -- Sales increased dramatically in June for the Lordstown-built Chevrolet Cavalier, ending a five-month sales slump, but consumer interest in its sister car, the Pontiac Sunfire, continued to decline.
Chevrolet sold 34,213 Cavaliers last month, a 50 percent increase from the same period a year ago; Pontiac sold just 5,132 Sunfires, down 18.8 percent from its June, 2002 numbers.
But five months of declining sales hurt the Cavalier's sales totals for the first half -- 128,346 Cavaliers were sold from January through June, an 8.1 percent decline from that period in 2002.
Sunfire's Jan.-to-June sales totaled 20,286, down 50.6 percent from a year ago.
GM plans to replace the Cavalier with its new Chevy Cobalt, with production set to begin in the fall of 2004; the Sunfire will be replaced with the Pontiac Pursuit, to be sold only in Canada.
Overall, GM and DaimlerChrysler AG's Chrysler Group reported higher sales in June, while Ford Motor Co.'s volume was off slightly. Yet all the American automakers painted an optimistic picture for the rest of the year.
GM saw its light truck sales rise 10 percent, while car sales, excluding its Saab brand, were down 9 percent compared with results recorded in June 2002.
GM set an industry record for truck sales for the third consecutive month with 247,577 deliveries, led by strong sport-utility vehicle sales.
"Despite some economic uncertainty, industry sales levels for the first half of the year have been in line with our expectations," said John Smith, GM's group vice president for sales, service and marketing in North America.
"We remain optimistic the second half of the year will improve and this momentum will carry into 2004," Smith said.
Ford sales
Ford, the world's No. 2 automaker, saw its sales slip just more than 1 percent despite heavy incentives.
Sales of Ford, Lincoln and Mercury brands were off 1.1 percent. Car volume was down 8 percent, while light truck sales -- which include vans, pickups and SUVs -- rose 2.7 percent.
Jim O'Connor, Ford's group vice president for North American marketing, sales and service, said business was better in the second quarter than in the first, and he's optimistic about prospects for the remainder of the year.
"We believe the president's tax cut and lower interest rates will support stronger economic growth and higher auto sales in the second half" of the year, O'Connor said.
Chrysler sales
Chrysler, the world's No. 5 automaker, received a lift from its new Pacifica minivan-sport-utility vehicle hybrid. After a slow start in May, when sales totaled 2,471, Chrysler sold 6,642 Pacificas last month.
Chrysler, which has said it likely will post a loss of $1 billion in the second quarter because of fierce price competition in North America, is counting on the Pacifica for a bulk of its car sales.
Chrysler also sold more Ram pickups last month than in any previous June.
Results for Chrysler, Ford and GM generally were in line with analysts' estimates.
In trading on the New York Stock Exchange, Ford shares fell 27 cents Tuesday to close at $10.82. GM shares were down 26 cents to close at $35.74, and DaimlerChrysler's U.S. shares were off 1 cent to $34.71.