Ford outsells GM in Feb.; both gain on Toyota woes

March 3, 2010 at 12:00a.m.

DETROIT (AP) — Ford posted a 43 percent jump in February U.S. auto sales and outsold General Motors for the first time in nearly a dozen years as it grabbed sales from struggling Toyota.

Ford Motor Co.’s sales surged thanks to strong demand for its cars and because it was able to grab some customers from Toyota Motor Corp., whose sales fell 9 percent due to a massive safety recall. Ford sold 334 more cars than GM in the U.S. for the first time since August 1998, when GM was in the midst of a strike.

Besides Ford and GM, other winners included Kia Motors Corp., Honda Motor Co. and Nissan Motor Co. Even struggling Chrysler saw improvement.

February was the first full month since Toyota’s Jan. 26 decision to halt sales of eight popular models in the U.S. because of safety concerns. Those cars went on sale again as dealers repaired them, but Toyota’s image suffered from the recall of millions of vehicles and congressional hearings on its safety record. Analysts had expected Toyota to see a double-digit drop in sales for the month. The Japanese automaker jacked up incentive spending to lure buyers.

GM reported an 11.5 percent increase, helped by new models and Toyota’s woes.

Susan Docherty, GM’s vice president of sales and marketing, said GM won over some Toyota buyers who left the Japanese carmaker due to the recalls. Chevrolet car sales to individuals rose 10 percent in February, an indication that GM is taking some of Toyota’s core market, she said.

“We feel we’re getting our fair share of the Toyota business,” she said.

Mike DiGiovanni, GM’s top sales analyst, said he expected that trend to continue into the spring.

Most carmakers offered deals to Toyota customers for trading in their vehicles. According to Edmunds, incentive spending rose 11 percent from January to $2,588 per vehicle. Toyota’s incentive spending rose 26 percent, to $1,833 per vehicle.

GM’s sales of its Buick, Chevrolet, Cadillac and GMC brands climbed 32 percent. GM plans to keep those four brands and is phasing out Pontiac, Saturn and Hummer. It has sold Saab.