Cobalt reverses trend with sales gain

Sales for all major automakers except Nissan dropped in July.

STAFF/WIRE REPORT

July sales of the Chevrolet Cobalt managed a small gain over last year as vehicle sales plunged throughout the industry.

General Motors Corp., Ford Motor Co., Toyota Motor Corp. and other automakers said Friday that their U.S. sales fell by double digits in July as they struggled to keep up with consumers’ growing demand for smaller, more fuel-efficient vehicles.

GM recorded 16,410 sales of the Cobalt last month, a 4 percent gain over the 15,850 that were sold in July last year.

Despite the gain, last month’s sales were the lowest for the Cobalt since March. Sales have been so strong that GM is putting a third shift on the Lordstown complex where the car is made.

The other car made at the Lordstown plant posted a 17 percent gain last month. GM sold 2,665 Pontiac G5s, compared with 2,287 in July of last year.

Automakers were expecting July sales to be at their lowest level in more than a decade as sales of trucks and sport utility vehicles continued to plummet and new troubles in the auto leasing market further wrecked consumers’ confidence. And they said things could get worse before they get better.

“We expect the second half of 2008 will be more challenging than the first half as economic and credit conditions weaken,” Ford’s marketing chief Jim Farley said in a statement.

GM said its sales plunged 26 percent, led by a 35 percent decline in sales of trucks and SUVs. Some car models showed strength, with Chevrolet Malibu sales jumping 79 percent from the same month a year ago. But even GM’s car sales fell 12 percent as consumers looked elsewhere for fuel efficiency.

Ford said its U.S. sales fell 15 percent compared with the same month a year ago. Its car sales were flat, and sales of the Focus small car rose 16 percent. But sales of Ford’s trucks and SUVs continued their steep decline, falling 22 percent.

Toyota said its sales fell 12 percent last month, led by a 27 percent drop in truck and SUV sales. Sales of its Prius hybrid fell 8 percent as Toyota failed to keep up with growing demand for the fuel-efficient car.

Even Honda Motor Co., which has reported sales increases in the last few months as consumers flocked to its fuel-efficient cars, said sales fell 2 percent in July. Honda’s car sales were up 14 percent, but results were dragged down by a 22 percent drop in truck and SUV sales. Honda said it was adjusting production to match increasing consumer demand for cars such as the Civic.

Nissan Motor Co. was the only major automaker to report a gain in July, with truck sales up a surprising 18 percent thanks in part to the new Rogue crossover.