GM LORDSTOWN Sales slump continues for Cavalier, Sunfire

The Big Three suffered declines in April, while foreign automakers set records.
STAFF/WIRE REPORT
LORDSTOWN -- Sales of the cars made at the Lordstown Assembly Plant fell sharply last month, continuing a slump.
Chevrolet sold 18,405 Cavaliers in April, which was down 35 percent from the 28,514 sold in the same month last year. For the first four months of the year, sales are 70,629, which is down 17 percent.
Pontiac sold 3,159 Sunfires, which was down 59 percent from the 7,648 sold in April 2002. So far this year, Sunfire sales are 24,798, which is down 54 percent.
General Motors' car sales were down 22 percent last month, while truck sales were up 2 percent. Its total sales were down 9 percent.
DaimlerChrysler AG's Chrysler Group had the sharpest decline of the traditional Big Three with a 10 percent drop in sales last month. Ford's volume fell 7 percent.
Incentives
GM, Ford and other automakers poured on incentives in April to boost sales after a lackluster start to the year, which was hampered by sagging consumer confidence and worries about the U.S.-led war in Iraq.
According to figures released Thursday, sales of new cars and trucks picked up in the latter half of last month as the war wound down and some of the industry's most aggressive incentives clicked.
April's seasonally adjusted annual sales rate was 16.5 million units -- slightly lower than most predictions. Still, it was up from 15.5 million in February and 16.2 million in March but down from last April's 17.2 million rate.
The seasonally adjusted annual rate indicates what sales for the full year would be if they remained at the same pace for 12 months.
"April was certainly better than the previous few months, but the results fell short of what most people expected given the offers that were out there for consumers," said George Pipas, Ford's top sales analyst. "I think the economy remains a factor. It's like a newborn calf -- upright but a bit wobbly."
Foreign manufacturers
Meanwhile, several foreign manufacturers posted their best April ever as they continued to gain domestic market share.
Toyota Motor Sales USA followed up its best-ever first quarter with its seventh consecutive record-setting April. Sales of the all-new 4Runner sport utility vehicle were up 36 percent from last year.
American Honda Motor Co., Hyundai Motor America and Porsche Cars North America Inc. also posted record sales for April. Honda was helped by its new Element SUV and Porsche by its new Cayenne SUV.
Most analysts expect foreign automakers to continue gaining share this year from the Big Three as the transplants add new vehicles and production capacity in North America.
GM Thursday also extended much of its current incentive program through June 2. Interest-free loans for 60 months are still available on most vehicles, but the Corvette and some luxury models have been excluded. GM's April offerings were more extensive than those it launched after the Sept. 11, 2001 terror attacks.
In March, Ford and GM both announced double-digit production cuts in the second-quarter because of sluggish sales. On Thursday, Ford revised its production plan slightly upward, by 10,000 vehicles, in response to higher-than-expected demand for the Mustang, Expedition and Navigator.