Salon.com > Dee-ann Durbin

U.S. auto sales rise thanks to credit and promotions

Tue, 03 Aug 2010 18:25:00 +0000

Most automakers posted higher U.S. sales last month, a sign that Americans are still willing to buy big-ticket items even though concerns linger about the economy and hiring.

After a sluggish June, sales rose slightly at Detroit automakers General Motors Co. and Chrysler. Foreign-based companies like Kia and Subaru posted bigger gains. Ford, meanwhile, had flat sales.

Sales were boosted by easier credit and new versions of cars and trucks ranging from Jeeps to large family wagons. Summer promotions also helped.

"Consumers have been conditioned to think that the summer is a great time to pick up a deal on a new car," Edmunds.com senior analyst Jessica Caldwell said.

Credit is thawing, with auto loan approvals up for buyers in every tier. GM announced last month that it would buy AmeriCredit Corp. in an effort to expand loans to customers with poor credit and offer more leases.

But the market is still vulnerable. Auto sales have been recovering from a 30-year low in 2009, but the pace has been fitful, with month-to-month sales falling as often as they rose in the first six months of this year.

Most automakers saw sales fall from May to June as shoppers avoided showrooms due to economic worries.

Mercury falling: Ford eliminates mid-range brand

Wed, 02 Jun 2010 21:25:00 +0000

Ford Motor Co. said Wednesday it will cease production of its 72-year-old Mercury brand by the end of 2010 after years of declining sales.

Ford plans to expand its luxury Lincoln lineup to make up for lost Mercury sales and support Lincoln-Mercury dealers who will suddenly be without a brand.

Derrick Kuzak, Ford's product development chief, said Lincoln will have seven new or revamped vehicles in the next four years, including the brand's first compact car.

Ford's board of directors approved ending the brand Wednesday morning. Ford Americas President Mark Fields said the decision was made this spring as part of a regular annual business review. He said Mercury's sales make up such a small percentage of North American market share, and that the profile of Ford and Mercury shoppers is so similar, that it makes more sense to focus on accelerating the Ford brand and growing Lincoln.

"We don't take this decision lightly," he said.

Mercurys sales peaked in 1978 at more than 580,000 vehicles but just over 92,000 Mercurys were sold last year.

Feb. US auto sales plow ahead despite snow, Toyota

Tue, 02 Mar 2010 23:36:00 +0000

Automakers plowed through a snowy February to better-than-expected sales, and new incentives led by beleaguered Toyota will keep the momentum going into spring.

Despite some analysts' predictions of single-digit gains, sales rose 13 percent over last February and all major automakers but Toyota Motor Corp. reported higher U.S. sales. Most took customers from the Japanese automaker, which has been struggling with a series of massive safety recalls. Toyota's U.S. market share fell to 12.8 percent, its lowest level since July 2005, according to Ward's AutoInfoBank.

To win back sales, Toyota said it will offer zero-percent financing on most models this month plus two years of free maintenance to returning customers. General Motors Co. and Chrysler LLC matched the financing deals.

Toyota's U.S. sales fell 9 percent last month, besting some analysts' predictions that its sales would fall by double digits. Meanwhile Ford, GM, Nissan, Honda, Hyundai and BMW all reported double-digit growth compared with February 2009, at the depth of the recession. The gains might have been even higher without the blizzards that paralyzed the East Coast.