Ford sees weak April auto sales

By David Bailey

DETROIT (Reuters) - U.S. auto sales appear to have fallen further in April after a weak first quarter, and could dip below 15 million units on an annualized basis, Ford Motor Co's chief sales analyst said in an interview on Tuesday.

But the Ford (F.N) executive, George Pipas, told Reuters that the No. 2 U.S. automaker saw signs to suggest the second quarter could mark a bottom for the industry in the world's largest market for cars and trucks.

Pipas cautioned that more uncertainty than usual surrounded that forecast since U.S. consumers were hit especially hard by rising food and fuel costs and tight credit.

April sales in 2007 stalled as gas prices rose and the U.S. housing market weakened further. Automakers, including Ford, are due to report sales results for the past month on Thursday.

Sales will be "noticeably lower" for the industry in April than they were a year ago, Pipas said.

He said the annual rate for U.S. light vehicle sales in the second quarter would likely be lower than the 15.2-million-vehicle rate posted in the first quarter.

The industry could "probably see the slowest sales rate of the year in the second quarter," he said.

The annual U.S. light vehicle sales rate for the second half of the year likely will be higher than the rate in the second quarter, but may not be higher than the rate automakers saw in the first three months of 2008, Pipas said.

Ford, which reported a first-quarter profit that surprised Wall Street last week, said a month ago it saw no sign that second-quarter sales would improve from the just-ended quarter.

"That (view) is playing out in the second quarter, certainly playing out in April," Pipas said.

Ford likely gained retail market share in the United States in the car and crossover segment in April. But Pipas said Ford likely lost retail market share overall because large sport utility vehicles and pickup trucks still make up a high percentage of its sales, Pipas said.

Sales of large SUVs and pickup trucks have been hit hard by the economic downturn and rising gas prices as well as a shift toward cars and more fuel efficient crossover utility vehicles that started five years ago, Pipas said.

Rising gas prices have accelerated the shift, he said.

Four years ago, Ford's sales were about 70 percent pickup trucks and truck-platform-based SUVs, and dropped to 46 percent in the first quarter. It expects to introduce its Fiesta global small car to North America in 2010.

Ford has forecast U.S. light vehicle sales for 2008 will come in between 15 million and 15.3 million units, marking the industry's third year of declining sales.