March 2007 U.s. Auto Sales Increased

Fri, 09 Oct 2009 15:55:22 +0000

After the selling days for the month of March closed and car manufacturers posted their sales figures, the American International Automobile Dealers Association (AIADA) recently announced the total auto sales in the United States for the month of March.

The association of car manufacturers reported that U.S. car sales for the said month increased by 0.8 percent as compared to March of last year. Last month, 1,542,229 new cars have been sold in the United States alone. The said figure is the total sales output of the Big Three and other international car manufacturers doing business in the United States.

Breaking down the figure between U.S. based car manufacturers and international brands, AIADA reported that the international brands are closing in on the Big Three in terms of the U.S. auto market share. Collectively, international brands posted an 8.8 percent increase in sales compared to their total sales for the month of March in 2006.

Currently, the U.S. car manufacturers still control the majority of the U.S. market with 51.6 percent under their belt. Meanwhile, international brands continue their surge by taking 48.4 percent of the U.S. auto market. If the current trend continues, international brands will be on their way to take the majority of the U.S. auto market just like what experts in the industry has projected.

The U.S. auto market is still being dominated by General Motors which is currently the largest car manufacturer in the world. The Michigan based automaker grabbed 22 percent of the U.S. auto market last month. Last year, the Detroit auto giant controlled 23.3 percent of the market. Following General Motors on the leader board is fellow Michigan based Ford Motor Company. The outfit headed by Alan Mulally takes hold of 16 percent of the U.S. auto market.

Close behind FoMoCo is the surging Toyota which now has 15.7 percent of the U.S. auto market. It can be remembered that experts in the auto industry expects the Toyota Motor Corporation to overtake Ford in the U.S. before the end of this year. And by looking at the current market shares of Ford and Toyota it would seem that their prediction will come true and not even a high quality brake from Active Brakes Direct can stop the Japanese brand.

Behind General Motors, FoMoCo, and Toyota is the troubled Chrysler Group. The member of the Big Three takes control of 13.4 percent of the U.S. auto market. The car manufacturer can be remembered to have announced the closing of plants and reducing their workforce. Those steps can lead to further shrinking of their U.S. auto market share. If the Chrysler Group continues their downward slide, it would only be a matter of time before another Asian brand overtakes them.

Honda sits behind Chrysler in the leader board with 9.3 percent of the U.S. auto market. Honda’s rivalry with Toyota can further increase their sales output as they come up with more and more popular models. Another Asian brand follows Honda in the leader board and it is Nissan, the counterpart of Chrysler in the Japanese auto market now has 7.2 percent of the U.S. auto market for the month of March.

By: Anthony Fontanelle

About the Author:

Anthony Fontanelle is a 35-year-old automotive.buff who grew up in the Windy City. He does freelance work for an automotive magazine when he is not busy customizing cars in his shop.

April Auto Sales Expected to Show Decrease

Wed, 30 Sep 2009 17:46:38 +0000

Anthony Fontanelle asked:

As the month of April approaches its final days, monthly sales for the month are expected to be posted by car manufacturers. But before the selling days for the month are over, analysts in the auto industry have already predicted that the U.S. auto sales figures for this month will show a reduction as compared to the same month last year.

Experts infer that slow sales for this month will hurt the U.S. Big Three more than it will affect Japanese car brands such as Honda and Toyota. This will surely increase the chances of the Toyota Motor Corporation overtaking the Ford Motor Company in terms of U.S. auto market share. The expected lowers sales for General Motors will also boost Toyota’s bid to become the world’s largest car manufacturer.

The reason cited by industry analysts for declining sales is the continuing trend which sees car buyers turning their back on larger vehicles and focuses more on smaller and more fuel efficient vehicles. It is a known fact that the U.S.’ Big Three are manufacturing large vehicles such as pickups and SUVs. This focus on large vehicles is seen by the car industry experts as Detroit’s downfall.

Recently, Toyota announced their sales figure for the first quarter of the year. as compared to General Motors’ sales output for the same period, Toyota surpassed the current largest car manufacturer in the world. And if the predicted slow sales for larger vehicles prove to be true, Toyota will be one step closer to dethroning General Motors by the end of the year.

Aside from loosing further ground against their Japanese competitors, Ford, General Motors, and Chrysler will also have difficulty setting in motion their restructuring plan. For years now, the three biggest U.S. auto brands are lagging behind Toyota in terms of profitability. Last year alone, Ford recorded their worst year in the company’s lengthy history. Just like Ford, General Motors and Chrysler also suffered from declining sales. In fact, due to its declining sales, the Chrysler Group is now in the auction block as its parent, DaimlerChrysler AG, chose to detach itself from the struggling brand.

Chrysler’s woes have resulted in slashing down jobs at their assembly plants. The company has also announced that they will be shutting down a plant and will reduce the number of shifts in another. Joe Barker, the senior manager of global sales analysis for CSM Worldwide, said that: “It’s a very tough environment out there right now. If you’re undergoing a restructuring at the same time that you’re trying to go after a smaller pool of consumers, it just adds to the complexity of a turnaround plan.” CSM Worldwide is an auto forecasting company.

The recent spike in the prices of gasoline is also seen as a cause of declining sales for this month. For the past couple of years, American motorists have experienced skyrocketing prices of gasoline and this has made car buyers wary about buying another car. In fact, in recent surveys in the United States, it has been found out that the most looked after attribute in a car by prospective car buyers is its fuel economy. This focus on fuel efficiency made gas-electric hybrid vehicles such as the Toyota Prius and the Honda Civic Hybrid popular among car buyers.

Aside from the price of gasoline, experts in the auto industry also pointed out that the increasing adjustable rate mortgages has made consumers think twice about purchasing a new car. But with the increasing production of fuel efficient cars which can be equipped with brake components from Active brakes direct, Toyota and Honda are expected to continue their strong sales output in the coming months and years.

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March 2007 U.s. Auto Sales Increased

April Auto Sales Expected to Show Decrease