DETROIT, Michigan, Sept 1 (AFP) - Automakers sold 1.43 million new cars and trucks in August, 12.4 percent fewer than a year ago, as the economy hit a soft patch and high oil prices sapped consumer confidence, automakers said Wednesday.
The double digit decline was not totally unexpected: Wall Street analysts had been calling for lower sales because of diminishing returns from incentives and hurricane-related sales losses in the state of Florida.
Analysts with General Motors Corp. and the Ford Motor Co., also pointed out that comparisons with August 2003 may be somewhat misleading, as that was the best sales month of 2003.
Nevertheless, the automakers were notably more cautious about the rest of the year, with GM saying that the industry sales pace would have to quicken for it to hit GM's year-end target of 16.7 million plus units.
For its part, the Ford Motor Company said it is more cautious about the full-year outlook than it was three months ago.
"Disappointing job gains combined with high energy prices is making life difficult for the consumer," said Ford economist Jarlath Costello in a teleconference with reporters.
Of the Big Three domestic manufacturers, DaimlerChrysler's Chrysler Group, had the best month, with sales off 6.5 percent from a year ago, according to Autodata Corp. of New Jersey, which did not adjust for the two fewer selling days this year.
On an adjusted basis, the automaker eked out a one percent sales gain, thanks to the abiding popularity of its hip 300 sedan and its Magnum sport wagon.
"It is truly a phenomena that we are enjoying right now," said Chrysler sales chief Gary Dilts, reflecting on the demand for the two new vehicles.
GM sales spiralled down about 14 percent, while Ford's sales slumped almost 13 percent, according to Autodata Corp.
Ford, whose US market share is now languishing at historic low, said its fourth-quarter production will be eight percent below what it was in 2003, in part to clear out backlogs of 2004 model year vehicles.
Toyota and Honda -- two of the Japanese Big Three -- posted double digit sales declines, but Nissan almost equalled its performance of last year.
The automaker was just 500 units shy of last year's total with two fewer selling days, and its Altima sedan had a particularly good month.
Toyota, like Ford, hopes a slew of new vehicles slated for launch in the coming months will boost its sales and bottom line.
"Mother nature didn't do the industry any favors in August," said Jim Press, chief operating officer of Toyota's US sales arm in a reference to Hurricane Charley.
"However, with a wave of new 2005 models landing on showroom floors in September, we expect a strong finish to the third quarter."
Ford too is looking for a boost from new product in the fourth quarter, with the launch of its all-new Ford Five Hundred sedan, its Freestyle crossover vehicle and a new Mustang coupe.