Asian automakers get over half US auto sales for first time
Thursday, 3 September 2009
CHICAGO, Sept 2 (AFP): Asian automakers gobbled up more than half of US auto sales for the first time in August as a government-funded "Cash for Clunkers" program spurred demand for their fuel-efficient vehicles, industry data showed yesterday.
Asian brands captured 52.3 percent of the US market in August-a five- point jump from a year earlier-while the Detroit Three saw their share slide 4.5 points to a record low of 40.8 percent.
General Motors, Ford and Chrysler first saw their share slip below 50 percent in July 2007 after steadily losing ground to foreign rivals for decades.
All three have undergone a series of painful restructuring programs and both GM and Chrysler were forced to seek bankruptcy protection earlier this year.
European brands saw their share slide 0.5 points to 6.9 percent in August, according to Autodata.
The stunning surge from Asian automakers came as US auto sales posted their first monthly gain since October 2007, rising one percent to 1.26 million vehicles from 1.25 million in August 2008.
Hyundai, Ford, Toyota and Honda were the big winners after posting double-digit gains while General Motors and Chrysler continued to report sharp losses despite the increased showroom traffic.
August's seasonally-adjusted annualized rate of 14.09 units, the highest since May 2008, was up from an adjusted rate of 11.24 million in July and 9.69 million in June, but still well below the 16 to 17 million vehicles sold every year for the past decade.
Sales remain down 27.9 percent for the year to date, according to Autodata.
"We're not optimistic about the remainder of the year," cautioned Edmunds.com analyst Jessica Caldwell.
"Factories are ramping up production to fill up the pipeline again-production that may come into a market that isn't in the mood for buying."
The three-billion-dollar "Cash for Clunkers" program sparked nearly 700,000 auto sales before it expired last week by offering owners of old gasoline guzzlers up to 4,500 dollars toward a new, more-efficient vehicle.
But analysts cautioned that the nation's weakened economy and high unemployment rate will continue to drag on auto sales and that the clunkers program may have simply encouraged people already planning to buy a new vehicles buy them a month or two earlier.
"I would suspect that in September we're going to see a noticeable decline in sales particularly in the first week or two or possibly even into the third week," said Ford sales analyst George Pipas.
Ford's sales rose 17 percent to 176,323 in August and the automaker said it had managed to boost retail market share in 10 of the last 11 months despite last year's collapse in sales.
The substantial improvement follows an increase of 2.3 percent in July, Ford's first year-on-year gain since November 2007, as the only US automaker to escape bankruptcy continues to draw new customers.
Ford-which long ago ceded the number two spot to Toyota - saw its market share rise 1.9 points to 13.9 percent, according to Autodata.
Asian brands captured 52.3 percent of the US market in August-a five- point jump from a year earlier-while the Detroit Three saw their share slide 4.5 points to a record low of 40.8 percent.
General Motors, Ford and Chrysler first saw their share slip below 50 percent in July 2007 after steadily losing ground to foreign rivals for decades.
All three have undergone a series of painful restructuring programs and both GM and Chrysler were forced to seek bankruptcy protection earlier this year.
European brands saw their share slide 0.5 points to 6.9 percent in August, according to Autodata.
The stunning surge from Asian automakers came as US auto sales posted their first monthly gain since October 2007, rising one percent to 1.26 million vehicles from 1.25 million in August 2008.
Hyundai, Ford, Toyota and Honda were the big winners after posting double-digit gains while General Motors and Chrysler continued to report sharp losses despite the increased showroom traffic.
August's seasonally-adjusted annualized rate of 14.09 units, the highest since May 2008, was up from an adjusted rate of 11.24 million in July and 9.69 million in June, but still well below the 16 to 17 million vehicles sold every year for the past decade.
Sales remain down 27.9 percent for the year to date, according to Autodata.
"We're not optimistic about the remainder of the year," cautioned Edmunds.com analyst Jessica Caldwell.
"Factories are ramping up production to fill up the pipeline again-production that may come into a market that isn't in the mood for buying."
The three-billion-dollar "Cash for Clunkers" program sparked nearly 700,000 auto sales before it expired last week by offering owners of old gasoline guzzlers up to 4,500 dollars toward a new, more-efficient vehicle.
But analysts cautioned that the nation's weakened economy and high unemployment rate will continue to drag on auto sales and that the clunkers program may have simply encouraged people already planning to buy a new vehicles buy them a month or two earlier.
"I would suspect that in September we're going to see a noticeable decline in sales particularly in the first week or two or possibly even into the third week," said Ford sales analyst George Pipas.
Ford's sales rose 17 percent to 176,323 in August and the automaker said it had managed to boost retail market share in 10 of the last 11 months despite last year's collapse in sales.
The substantial improvement follows an increase of 2.3 percent in July, Ford's first year-on-year gain since November 2007, as the only US automaker to escape bankruptcy continues to draw new customers.
Ford-which long ago ceded the number two spot to Toyota - saw its market share rise 1.9 points to 13.9 percent, according to Autodata.