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Big Three sales tumble
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May 1, 2001: 3:14 p.m. ET
Ford, GM, Chrysler see double-digit April declines on weak consumer spending
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NEW YORK (CNNfn) - Ford Motor Co., General Motors and the Chrysler unit of Germany's DaimlerChrysler all reported double-digit sales declines in April Tuesday, reflecting a drop in consumer spending on big-ticket items as the economy continues to slow.
Ford (: Research, Estimates) said its April sales fell 14.5 percent to 318,812 vehicles, and added that it is scaling back second-quarter production to deal with the slowdown.
GM (GM: up $0.31 to $55.12, Research, Estimates) the world's No. 1 automaker, reported a 16 percent drop in April sales to 359,499, but said that it anticipates second-quarter North American production will increase slightly from previous estimates to 1.3 million cars and trucks. That's still 15 percent lower than in the year-earlier period.
And the Chrysler division of DaimlerChrysler (DCX: up $0.53 to $49.88, Research, Estimates) said April sales plummeted 18 percent to 187,119 from a year earlier, though it added sales in the last 10 days of the month increased significantly, particularly among minivans and the PT Cruiser.
GM, whose brands include Chevrolet, Saturn and Cadillac among others, blamed moderating consumer demand for the softer sales, but said it remains "cautiously optimistic" about the rest of the year.
"With the spring introduction of key new vehicles into the marketplace, our dealers are well equipped with a strong product lineup to help sustain our performance in tougher market conditions," said Bill Lovejoy, GM's group vice president of North America vehicle sales.
GM said full-sized sport/utility vehicles saw the greatest gains in the period with a 12 percent increase in sales. Total car sales slipped 15.1 percent to 181,228 from 213,519 a year earlier. Total truck sales slid 16.3 percent to $178,271 from 213,099.
The company lowered European production estimates, while increasing estimates for Latin America. Asia Pacific estimates are unchanged.
Ford sees declines, to cut production
Meanwhile, Ford said its sales decline, which is sharply wider than the 12.6 percent drop posted in March, suggests consumer spending weakened in the second quarter from the first.
Sales of sport/utility vehicles were strong but car sales were weaker than expected, the company said.
As a result, Ford (F: down $1.18 to $28.30, Research, Estimates) said it plans to cut North American output by 40,000 units to 1.19 million cars and trucks in the second quarter, meaning production will be about 10 percent below a year earlier level, or 129,000 units.
"April auto sales suggest that consumer spending growth may have weakened compared with the first quarter," Martin Inglis, vice president of Ford North America, said. "Nonetheless, the April sales rate ... is still healthy. We view this as a sign of underlying strength in the U.S. economy. Together with lower interest rates, it lays the groundwork for stronger economic growth later this year and into next year.
Ford's April car sales fell 20.6 percent to 124,511 from 156,820 a year earlier, while truck sales slipped 10 percent to 194,301 from 215,899.
Sales figures include Land Rover, which Ford acquired on June 30, 2000.
Chrysler also falls
Chrysler said total car sales fell 33 percent to 47,664 from 71,032 a year earlier. Truck sales declined 12 percent to 139,455 from 157,960 a year earlier.
Minivan sales were up 6 percent in the month, and the company remained optimistic with the planned launch this week of the new Jeep Liberty.
Chrysler also said it reduced April inventories 28 percent to 471,557 units from 656,950 a year ago. That means inventory is down to a 63-day supply from a 72-day supply.
International automakers fare better
Some international automakers reported stronger results. American Honda, the U.S. division of Japan's Honda Motors, reported a 2.9 percent sales decline in April to 96,705 Honda and Acura vehicles compared with a year earlier. But the company posted an increase in truck sales.
"Even though our April sales were off slightly, it was still one of the 10 best sales months in American Honda history," said Dick Colliver, executive vice president of sales.
The Honda Division posted a 4.2 percent decline in sales to 83,890 from 87,556. Acura sales increased 6.3 percent to 12,815 from 12,057.
Total car sales fell 5.6 percent to 72,368 from 76,641 a year earlier. Total truck sales increased 5.9 percent to 24,337 from 22,972.
BMW of North America, meanwhile, reported a whopping 30 percent jump in April U.S. sales to 20,012 vehicles from 15,337 a year ago, marking its second-best month in the United States, the company said.
Car sales increased 21 percent to 17,196 in April from 14,254, while truck sales grew to 2,816 from 1,083 a year earlier. 
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