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Market Update : 
GM and Ford Monthly Sales Fall
Author: Ivaylo Dagnev
123jump.com
Last Update: 8:37 AM EST March 02 2006



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General Motors and Ford Motor said their February U.S. sales fell, after fleet customers lifted January results, while DaimlerChrysler, Toyota Motor., Nissan Motor and Honda Motor Co. all reported gains. Asian automakers boosted their February U.S. market share to 37% from 36.1% a year earlier.

 
GM and Ford, the largest U.S. automakers, also said that they would cut second-quarter production in North America. Sales of cars and trucks declined 2.5% last month from a year earlier at GM and 4% at Ford.

DaimlerChrysler''s Chrysler Group reported a 2.5% increase, and the gains were 8.7% at Honda, 2.4% at Toyota and 2.2% at Nissan.

Ford and GM weren''t able to follow up on January gains that resulted from increased purchases by rental car companies and other corporate fleets. The two automakers are planning to curtail a combined 60,000 jobs in North America because of sagging U.S. market share as rivals such as Toyota win more customers.

GM said its February U.S. sales fell to 301,545 cars and trucks. Sales dropped 13% for cars and increased 5.3% for light trucks.

GM said it would reduce second-quarter North American production by 3.7% to 1.2 million cars and trucks.

Ford said it would cut North American production by 1.8% in the second quarter to 890,000 cars and trucks.

Ford''s sales of Explorer mid-size sport utility vehicles and large Expedition SUVs both declined 21%, while sales of its F-Series pickup trucks, the industry''s top-selling line of vehicles, increased 5.5%.

DaimlerChrysler, the world''s fifth-largest automaker, said February sales rose 4.3%, including the Chrysler increase and a 28% boost for Mercedes-Benz.

Toyota, the world''s No. 2 automaker, said it sold 166,940 cars and trucks, led by the Avalon sedan, new RAV4 small SUV and mid-size Tacoma pickup.

Nissan, which ranks sixth in U.S. sales, said its gains were led by the Sentra compact and mid-size Altima sedan. Sales of the Tokyo-based company Infiniti luxury brand fell 5.5%.

Honda, which is fifth in U.S. sales, said it sold 106,644 vehicles in February. The Tokyo-based automaker benefited from a 32% increase for its Civic small car and sales of the Accord sedan rose 4.4%.

Hyundai Motor Co., South Korea''s largest automaker, said its U.S. sales advanced 0.2% from a year earlier.

GM was expected to report a sales rise of 1.3%. Analysts estimated declines of 6.3% for Ford and 5% for Chrysler.

GM lost $8.55 billion in 2005 and it is trying to return its North American business to profitability.
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