DETROIT - US auto sales tumbled 28 per cent in June, the narrowest decline in nine months, as Ford Motor Co stole market share from its rivals.
Worries over economy left consumers window-shopping only
Some of the most bullish analysts and economists had expected industrywide US sales to top the 10 million-unit annual rate in June for the strongest showing this year.
However, the rate came in at 9.69 million units, according to Autodata, a dip from 9.9 million in May which underscores the uncertainty. At 10 million units it still would have been among the weakest months since the early 1980s.
Automakers said the results pointed to more stability for the economy, but fell short of marking a turnaround for the US auto market after a punishing four-year decline.
Ford, the only US automaker not supported by emergency US government funding, reported a 10.9 per cent drop in US sales in June and took back the No. 2 position in U.S. sales from Toyota Motor Corp through the first half of 2009.
The sales results came as General Motors Corp pleaded its case to the US Bankruptcy Court to permit a swift sale of its best assets to a new company funded by the Obama administration and avoid liquidation. . The top-selling automaker in the US market, posted a 33.6 per cent decline in US sales in June and sounded a more cautious tone about the economy than rivals in a conference call with analysts and reporters.
'Our results are tenuous,' said GM sales chief Mark LaNeve.
'Our customers are expecting a very quick exit from bankruptcy similar to what they saw for Chrysler.' Chrysler Group LLC, in its first sales report following its sale to a group led by Italy's Fiat SpA in June, said US June sales fell 42 percent.
Toyota Motor Corp posted a 31.9 per cent sales decline in June. Honda Motor Co Ltd said sales fell 29.5 per cent from June 2008, a month where a rise in gasoline prices drove demand for small cars.
Nissan Motor Co Ltd posted a 23.1 per cent drop and said there were some signs demand had stabilised after industry sales plunged following the financial market collapse in September.
'I wouldn't say that the industry has done a 180 (degree turn), but I would say that in the last 60 days the industry has stabilized,' Mr Al Castignetti, general manager for Nissan in the United States, told Reuters in an interview.
Nissan is the No. 6 automaker in US sales, but would fall to No. 7 through the first half of the year if Hyundai Motor Co and Kia Motors sales are combined. Hyundai has made sharp gains over the past year in terms of sales and perception. -- REUTERS
