GM, Ford Sales Slump; Gas Prices Blamed
While Toyota and Nissan reported their “best month ever,” General Motors and Ford reported more than dismal sales for April.
After the biggest quarterly loss in 13 years, GM announced a decline in sales to the tune of 8 % from April of 2004. Ford echoed its domestic rival with a drop of 5%.
The most noticeable drop-off was in sport utility sales which lend them selves to poor gas mileage. In a world of increasing fuel costs, that spell trouble for American auto industry’s most notable vehicle line.
“Certainly fuel economy matters, as gas prices on the margin will affect some categories of the business,” Paul Ballews, GM head of industry analysis and sales said.
Meanwhile, US sales in April for Toyota increased 21% and shot up 27% for Nissan.
“Consumer appetite for hybrid and fuel efficient vehicles continues unabated,” said Jim Press, VP and COO of Toyota’s North American sales operation.
ChryslerDaimler, on the other hand, reported a 5% increase, stretching out a 13 consecutive month sales gain.