GM, Ford, Chrysler July sales fall short of expectations

DETROIT Thu Aug 1, 2013 10:53am EDT

The Chrysler Toledo Assembly Complex has features banners (here Ambition) on the outside of the facility as part of its ''Head, Heart and Hands'' initiative to build community among workers at the plant. The new section of the plant will be used to produce the Jeep Cherokee. Toledo, Ohio July 18, 2013. REUTERS/James Fassinger

The Chrysler Toledo Assembly Complex has features banners (here Ambition) on the outside of the facility as part of its ''Head, Heart and Hands'' initiative to build community among workers at the plant. The new section of the plant will be used to produce the Jeep Cherokee. Toledo, Ohio July 18, 2013.

Credit: Reuters/James Fassinger

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DETROIT (Reuters) - General Motors Co, Ford Motor Co and Chrysler Group LLC all reported disappointing U.S. auto sales in July, hurt by low inventory of some popular car models, including Ford's Fusion midsize sedan.

Looking at the results, RBC Capital Markets analyst Joe Spak said the annual sales rate for July would be around 15.4 million vehicles, below analysts' average forecast of 15.8 million.

All three major U.S. automakers reported strong truck sales amid a boom in the housing and oil industries. But car sales fell short of estimates.

(For a U.S. auto sales graphic, click on link.reuters.com/was58s)

During a conference call, Ford's U.S. sales analyst, Erich Merkle, said low supply of the Fusion and other models "muted" the company's sales increase during the month. Ford also said supply of the Focus compact car grew tighter in July.

GM sold 234,071 cars and trucks in July, up 16 percent from a year ago. Analysts, on average, expected the largest U.S. automaker to post sales of 243,134. GM forecast the industry's annual sales rate in July would be around 15.7 million.

Ford, the No. 2 U.S. automaker, said its U.S. sales last month totaled 193,715 vehicles, up 11 percent from a year ago. Analysts had expected 200,000. Chrysler, a unit of Italy's Fiat SpA, sold 140,102 vehicles in July. Analysts had expected, on average, 146,275.

Ford's miss stemmed from slower sales of two key models that the company revamped last year. Fusion sales fell 12 percent in July, while sales of the Escape crossover were up just 3.6 percent, compared with a sales increase of 20.3 percent for the Escape in the January-July period.

Focus sales were up 1.9 percent in July. Ford Explorer sales were up 12.6 percent, compared with a jump of 24.1 percent over the first seven months of the year.

"We're working really, really hard to expand the capacity as needed," said Ken Czubay, Ford's vice president of U.S. marketing, sales and service. He also said the company is working to boost production of the Explorer and Focus.

Industry sales in July were led by surging demand for full-size pickup trucks. July was expected to be the second-best sales month of the year, after June's annual sales rate of 16 million.

Strong demand for pickups is particularly good news for U.S. automakers, which dominate that sector and reap large profits from those vehicles. Chrysler launched a new version of its Ram pickup last fall, while GM started selling its redesigned Chevrolet Silverado and GMC Sierra trucks in June.

Chrysler's Ram truck sales gained 31 percent in July. Sales of the Ford F-Series trucks were up 22.6 percent. GM said its full-size pickup truck sales were up 44 percent, the best since July 2007.

Nissan Motor Co said its U.S. sales in July rose 10.9 percent to 109,041 vehicles, below the 111,115 expected by five analyst polled by Reuters. Volkswagen said its July U.S. auto sales fell 3.3 percent.

(Reporting by Paul Lienert and Ben Klayman in Detroit; Editing by John Wallace)

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Comments (2)
morbas wrote:
Total Government Expenditures add up to 57% of all USA incomes. Presently the rich have a lower rate than the poor. Over the past 60years, the tax rate has decreased from 91% down to the present 35% (25% for the wealthy quintile). Internal sales stagnation will continue as long as the Municipality and State revenue base is disproportionately burdened on the lower 4/5th income groups.
This will accelerate economic recovery…

We the people of this United States do proclaim this federal government ‘of, by and for the people’. That, in order to fairly distribute revenue burden, to satisfy ‘net income’ progressive taxation, to balance all governments budgets, and to not tax poverty;
The people mandate:
Income National Tax code that shall use margin graduated income tax principle: Margin $30k 0% single, $60K 0% joint, income above this a linear increasing rate {Income-[$30k or $60k])*(Income/$300k)*90%; 90% limit} . Exemptions shall be prohibited. The Federal Reserve shall amend the (90%) rate, and control currency printing mandated to maintaining currency availability and value. The Federal Reserve shall set the Margin rate value well (>2x) above highest of all State Poverty Level(s). Revenue shall be proportioned 1/3rd federal,1/3rd state proportioned per cast ballot and 1/3rd municipality proportioned per cast ballot.
This National Tax is a peoples tax, no other citizen taxation shall be permitted. Business shall not be taxed. The Federal Reserve shall control taxation. The people will by simple majority approve or reject all margin and rate changes at every Congressional House Representative election year ballot.

To:
Office of_______________________
U.S. House of Representatives
Washington, DC 20515

To:
Office of Senator ______________
United States Senate
Washington, D.C. 20510

Aug 01, 2013 10:41am EDT  --  Report as abuse
ballsy wrote:
The Federal reserve needs to be dissolved. Flat tax. Abolish the IRS.

Aug 01, 2013 11:52am EDT  --  Report as abuse
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