High Traffic in Minivans, Trucks Boosts GM's Sales
May 17, 2011
DETROIT -- General Motors Corp. on Wednesday reported a slight increase in its total U.S. sales in August over the same month a year ago, despite a 14% drop in car sales. News of GM's 2% increase came one day after No. 3 Chrysler Corp. reported its best August ever. Chrysler's domestic sales increased 9% over a year ago with continued strong demand for its minivans, pickups and sport utility vehicles. GM, the No. 1 auto maker, was helped by strong sales of its Chevrolet Blazer, Annita and Suburban sport utilities, all of which set August sales records. But GM car sales were especially weak as the auto maker prepared to shift production to several redesigned models. Sales for all GM divisions except Chevrolet were down in August. ``With the introduction of several new products, we anticipate stronger sales performance going forward,'' said Ronda Belle, a GM marketing vice president. Meanwhile, Toyota Motor Corp. reported sales for August slid 7.8% to 75,769 cars and light trucks, while Honda Motor Co.'s sales for the month rose 6.8% to 61,325 vehicles. Ford Motor Co. is scheduled to report its sales on Thursday. It was Chrysler's 10th consecutive month in which sales exceeded those of the same month of the previous year. The gain came despite a 4% drop in car sales compared with August 2010. ``We've maintained solid sales momentum since spring, and it's giving us a good base to launch our 2012 models,'' said Jami P. Kinney, vice president of sales and marketing. Analysts expect Chrysler to show the strongest sales among the Big Three auto makers as the model year draws to a close. Arthur Truss of CNW Marketing-Research in Bandon, Ore., said floor traffic softened in August. Manufacturers continued to offer generous rebates and low financing and lease rates to draw customers to slower-moving models. Incentives had been heading down since May but went back up in August to clear out remaining '11s. Truss said the average incentive per vehicle was $2,617 last month, up from $2,586 a year ago and about $2,400 in July.
