04 August 2010

July Car Sales and More

General July sales for Chevrolet, Buick, GMC and Cadillac increased by a combined 25 percent to 199,432 units. [Ed. discontinued brands excluded.] . . .

Note: in July 2009 U.S. light vehicle sales rose to 11.2 million (SAAR) from 9.7 million (SAAR) in June 2009. This increase was related to "Cash-for-clunkers". General Motors didn't emerge from bankruptcy until July 10, 2009, so GM will probably have the best year-over-year comparison of the major automakers.

Ford U.S. July sales up 3.1% to 170,411 vehicles . . .

Chrysler U.S. July sales rise 5% to 93,313 units . . .

Toyota U.S. July sales fall 3.2% to 169,224 units

From here.

GM and Ford have clearly turned the corner to recovery. Toyota's recall driven sales slump is having a lingering effect, but doesn't appear to threaten the company's survival; it was still number three in U.S. auto sales in July.

Chrysler's less than exceptional sales growth and small total sales, despite favorable conditions, suggest that Chrysler's survival and return to profitability is still an unanswered question.

Ford's sale of 100% of Volvo to a Chinese company has closed. The price was $1.5 billion plus post-sales adjustments, down from the $6 billion for which Ford bought Volvo. About $1.3 billion of the purchase price was paid for in cash. For the Chinese company, this offers entry into the worldwide automobile industry and a source of technology transfer.

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