This past week while U.S. auto majors GM (NYSE:GM) and Ford (NYSE:F) celebrated rising August U.S. sales, Japanese manufacturers Honda (NYSE:HMC) and Toyota (NYSE:TM) showed continued impacts from the Japanese tsunami setbacks and sliding sales. Here are some of the key updates from the week on these names.
GM
GM continued its race to the top-spot on best-sellers list for the year by posting an impressive 18% year-over-year (yoy) increase in August U.S. sales, in spite of deteriorating economic environment. Retail sales led this surge in volumes. [1] GM’s international sales surged in August as well. GM posted its highest ever August sales in China, up 13% from last year in spite of relative slowing of vehicle sales in China. [2]
The company further invested in its future growth by opening $200 million diesel engine plant in Thailand. [3] Production capacity of this plant is 120,000 engines a year and is the company’s first such plant in South-East Asia.
Ford
Ford also finished August in the green but lagged behind GM in growth. The company reported 11% yoy increase in August U.S. sales. While Fusion remained Ford’s top-selling car, Lincoln sales grew 25% yoy. ((Ford Motor Company’s August Sales Up 11 Percent)) Ford faced pressure in China, the world’s largest automobile market with August sales decreasing 7% yoy even though its year-to-date sales was up 11% compared to January-August’2010. [4] Ford reaffirmed its commitment to China and is currently developing four new plants there.
Ford is also actively working towards introducing new Focus ST and has started sharing the model’s videos and photographs on its Facebook page. [5]
Toyota
Toyota’s August sales in U.S. slipped by 16% yoy. While its car sales contracted by 13%, truck sales contracted by around 19% in U.S. in August. [6] The company announced that its U.S. operation will return to 100% capacity this month since Japan earthquake in March disrupted its supply chain and inventory levels. But woes continue to mount for Toyota with the company facing strikes in Australia over pay [7] and with safety worries mounting in China after Chinese General Administration of Quality Supervision, Inspection and Quarantine reported that Toyota vehicles caused several accidents in the first half of the year. [8]
Honda
Honda’s sales continued to be affected by the effects of Japan earthquake in August and decreased significantly. In U.S. in August while sale of Honda branded vehicles decreased by 25%, Acura sales declined by 22%. The contraction was especially severe for Honda branded cars, which experienced sales contraction of around 33%. [9] The company expects its sales will recover in coming months as greater selection of vehicles continue to arrive at its dealers after production for most of its models returned to 100% at its North American factories by end of August.
But just as the recovery was setting in, Honda has again been hit by a massive recall of around 1 million vehicles globally. This vehicle recall is related to problems with power windows and computer systems and will likely further dent the brand’s image. [10]
Notes:- GM’s U.S. Sales Up 18 Percent in August [↩]
- GM Sales in China Rise 13.4 Percent, Set August Record [↩]
- General Motors Co Opens $200 Million Diesel Engine Plant In Thailand [↩]
- Ford China Sales up 11 Percent This Year [↩]
- Facebook Fans to Get Exclusive Progress Reports on New Ford Focus ST [↩]
- Toyota: U.S. August 2011 Sales Chart [↩]
- Strike Hampers Toyota’s Production [↩]
- Toyota Looking Into Safety Worries in China [↩]
- American Honda August Sales [↩]
- Honda Recalls A Million [↩]
