September Sales: Slow, Steady Growth Led By Trucks, Crossovers

General Motors, Chrysler LLC and Nissan each increased sales by at least one-fifth when compared with September 2010, though the industry looks good mostly when compared with last year. Thanks to their financial problems, GM and Chrysler took bigger hits than the rest of the industry the past few years.

On Monday, Ford and Toyota estimated a low-13 million seasonally adjusted annual rate (SAAR), while GM estimated a number in the high 12s.

The automakers face slow growth rather than a double-dip recession, says GM sales veep Don Johnson. The auto industry remains a bright spot in consumer demand because a lot of buyers are replacing aging cars. Not to mention (as no one did) cars and trucks coming off three-year leases from the beginning of the recession with stickers higher than their owners could afford.

Pickup trucks had a good month at the Detroit Three. GM trucks were up 34.3 percent, with the Chevy Silverado and GMC Sierra selling 57,602 combined. With heavy advertising and incentives, GM expects to have its truck inventory back down to a 90-day supply, or 200,000 units, by the end of the year.

Ford sold 54,410 F-Series, and Chrysler sold 24,522 Ram pickups, helping it edge past Toyota Motor Sales, which remained beset with supply problems related to the March earthquake and tsunami in Japan.

Ford’s utilities were up 35 percent overall in September ’11, versus September ’10, led by the aged Escape and the new Explorer. As for pickups, strong sales to small businesses and contractors have helped, though certainly there can’t be too much demand resulting from home construction and repair.

The 20k+ Ford Escape sales are puzzling. The much newer Chevy Equinox also continues to sell well, but it needs to be combined with GMC Terrain sales to better the Ford.

While GM’s Chevy Cruze again led compact sales last month, its soon-to-be-replaced Malibu took a dive. Meanwhile, the new Ford Focus missed the top five in compact sales, while its soon-to-be-replaced Fusion was the third-bestselling midsize sedan. Ford blames short supply of the ’12 Focus, which launched in March. Last month, Ford said a large portion of its 14,093 Focus sales in August were of the new model. Could it be that many buyers are willing to spend a couple of dollars more per month to buy a Fusion, especially as gasoline prices have come down below $3.50 per gallon in September?

Hard to say, since Ford declined to break down old-model vs. new model Focus last month. Its Fiesta is languishing at 3,967 last month, up 30.1 percent from a start-up period September ’10. While that doesn’t sound bad, it’s off-pace from earlier this year. Meanwhile, Kia sold 6,666 Souls last month, no doubt making it the second bestselling hatchback in the U.S., after the Toyota Prius.

Hatchbacks are popular in Europe with middle-class buyers because they offer utility, interior space and flexibility in a small package in a part of the world where cars are significantly more expensive. Middle-class Americans on a stricter budget than three or four years ago don’t want hatchbacks or station wagons, but they’re buying tall combinations of both, the crossover utility.

As for the Prius, Toyota’s U.S. sales chief, Bob Carter, says that with Japanese and U.S. factories back up to capacity this month, the company’s sales will be back in the plus column in October and through the rest of the year. Sales of its bestselling Camry fell September-over-September, but it still led midsize car sales here.

Of those 24k Camrys sold in September, a few new ’12 models had trickled in to dealerships at the end of the month. Usually at this point in the old model’s cycle, it would have about 40,000 leftovers in the U.S. inventory. Toyota has just 9,000 ’11 Camrys going into October, but it plans to have 35,000 new ’12 models available through the month.

Before we go to the numbers, let me remind you to follow me on Twitter @MT_Lassa, where I post sales number through the day, each month at the beginning of the month …

1. GM: 207,145, up 19.6 percent.

*Chevy Camaro was up 10.6 percent, to 6,994. Ford Mustang was off 12.3 percent, to 5,054. Dodge Challenger was up 6 percent, to 3,328.

*Chevrolet division sales rose 21.5 percent, to 147,611.

*Big pickups had a healthy month thanks to big incentives and advertising to reduce inventory. Chevrolet Silverado sales rose 35.8 percent, to 43,698 while GMC Sierra was up 25.5 percent, to 13,904, a total of 57,602 for the two truck models.

*Cruze remained the dominant Chevy sedan, at 18,097, with a total of 187,524 for the first three quarters of ’11. Malibu was off 31.8 percent, to 11,114 and Impala was up 13.4 percent, to 13,822.

*Chevy Equinox was up 32.9 percent, to 15,497, while GMC Terrain was up 44.7 percent, to 6,910. Cadillac SRX sales rose 21.7 percent to 4,901.

*Also following a heavy advertising campaign, Cadillac CTS sales were rebounding, up 24 percent, to 4,663.

*Buick Enclave was up 10.4 percent, to 4,868 while Regal was up 87.2 percent (sales were limited to German-built cars a year ago) to 3,325. Buick overall was up 5.6 percent, to 13,599. Cadillac was up 1 percent, to 12,741.

*Chevrolet sold 723 Volts. Total sales for the first three quarters was 3,895.

2. Ford Motor Company: 175,199, up 9 percent.

*The Ford brand totaled 168,181, up 14.4 percent. That leaves 7,018 for the Lincoln brand, off 6.6 percent.

*Ford sold 20,225 Escapes, up 41.3 percent. Explorer was up 203.6 percent over the wind-down of the old model, at 11,336 last month.

*Ford cites low Focus inventories for a 24.1 percent drop to 10,309.

*Fusion topped Focus and all Chevy sedans, at 19,510, up 22.6 percent.

*F-Series had its best September since 2007, up 14.7 percent, to 54,410.

*Ford moved 3,013 of its discontinued Crown Victorias, up 53.6 percent.

*Taurus was off 38.3 percent, to 4,305.

*MKX topped Lincoln sales, at 2,267, off 14.7 percent.

3. Chrysler LLC: 127,334, up 27 percent.

*Chrysler Group claimed its best September since 2007, though it must be noted that Mopar’s nadir in 2008-10 was worse than most other automakers. So its September ’11 over September ’10 results look particularly good.

*Jeep Wrangler was up 47 percent last month, to 11,388 while Grand Cherokee was off 3 percent, to 10,580. The Ram pickup remains Chryco’s bestseller, up 45 percent to 24,522.

*Minivans remain important. Chrysler Town & Country was up 16 percent, to 10,405 and Dodge Caravan was up 27 percent, to 10,203. Dodge Journey was up 29 percent, to 5,402.

*Chrysler 200 was the company’s bestselling car, up 87 percent over the Sebring to 8,709, while the 300 was up 50 percent, to 4,445.

4. Toyota Motor Sales (including Scion, Lexus): 121,451, off 17.5 percent.

*Camry fell 19.2 percent to 24,851.

*Corolla was off 23.3 percent, to 16,147.

*Lexus ES was off just 1.9 percent, to 3,627.

*Lexus RX was off 32.6 percent, to 5,003, or 1,907 units short of Cadillac SRX sales.

*Toyota RAV4 was off 47.9 percent, to 7,649.

*Tundra was off 3.3 percent, to 6,695, while Tacoma was off 7.8 percent, to 8,180.

*Prius was off 18.2 percent, to 9,325.

5. Nissan North America (with Infiniti): 92,964, up 25.3 percent.

*Altima was up 21.7 percent, to 24,356 units.

*Sentra was up 2.9 percent, to 8,105, while Versa was up 68.1 percent, to 11,800.

*Rogue was its bestselling SUV, up 29.1 percent, to 10,740.

*Infiniti breaks out coupe and sedan numbers for its bestseller, the G series. The G sedan was up 28.9 percent, to 3,940 and G coupe was off 20.3 percent, to 1,089.

*QX was the bestselling Infiniti SUV, up 46.7 percent, to 1,206.

6. American Honda (with Acura): 89,532, off 8 percent.

*Accord fell 13.8 percent, to 18,639.

*Civic fell 26.4 percent, to 13,724.

*Odyssey was up 14.7 percent, to 8,818.

*CRV was up 9.5 percent, to 19,604, as Honda says its trucks were up 7 percent for the month.

*Pilot was up 27.9 percent, to 10,306.

*Acura division was off 6.6 percent, to 10,010.

*TSX was its bestseller, at 3,112, up 37.9 percent. Of those, 261 were TSX wagons.

*MDX was off 28.3 percent, to 2,925.

7. Hyundai: 52,051, up 11.8 percent.

*Sonata leads with 18,181, off 13.5 percent.

*Elantra may be cannibalizing some Sonata sales. The compact was up 43 percent, to 14,386.

*Genesis was off 7.1 percent, to 3,000, including sedans and coupes.

*Hyundai/Kia sales combined would total 87,660.

8. Kia: 35,609, up 18.4 percent.

*Sorento was its bestseller, up 9.9 percent, to 11,112.

*Kia sold 6,191 Optimas, up 206 percent.

*Soul is the popular small hatchback sold in the U.S. that’s not a Mini, up 24.7 percent to 6,666.

9. Volkswagen of America: 27,036, up 35.6 percent.

*Jetta totaled 15,023, up 39.5 percent.

*The all-new, all-American, Chattanooga built Passat scored 3,176, up 339.9 percent over the old model’s September ’10 sales.

*Tiguan was up 22.8 percent, at 1,628.

*If it could be combined with Audi, VW’s U.S. sales would total 36,061.

10. BMW Group: 25,749, up 11.4 percent.

*Mini accounted for 3,999 of those, off 18.1 percent.

*BMW’s crossover utility vehicles accounted for 6,343, up 46.3 percent.

11. Mazda: 25,521, up 37.4 percent.

*3 was up 11.7 percent, at 8,929.

*CX-7 was up 90.8 percent, at 4,909.

*6 was up 52.4 percent, at 4,163.

12. Mercedes-Benz: 23,897, up 15.6 percent.

*C-Class was up 32.1 percent, to 6,865 and E-Class was off 8.6 percent, to 5,122.

*The new CLS moved 709 units, up 399.3 percent.

*GL-Class, at 2,541, up 27.8 percent, outsold the M-Class, which is making its transition to a new model, at 2,477, off 10.9 percent.

13. Subaru: 20,934, up 2.3 percent.

*It’s one of the smaller Japanese brands most affected by post-earthquake shortages.

*Outback led sales at 7,607, off 6.7 percent.

14. Audi: 9,725, up 19.3 percent.

*It’s the brand’s ninth record-breaking month in a row.

*The new A6 took 1,124 of those sales, up 42.8 percent.

*A4 was up 11.4 percent, to 2,690.

*Q5 was off 1.8 percent, to 2,235.

15. Mitsubishi: 5,803, up 17 percent.

*Best September for the brand since 2008.

16. Volvo: 5,042, up 21 percent.

*S60 was its top-seller, at 1,623.

17. Jaguar/Land Rover: 3,851, up 11 percent.

*Land Rover was up 10 percent, to 2,740.

*Jaguar was up 15 percent, to 1,111.

18. Porsche: 2,170, up 10 percent.

*Cayenne was up 15 percent, to 930.

*Panamera fell 17.6 percent, to 514 units, but still beat 911.

*The outgoing 911 was up 55 percent, to 504.

19. American Suzuki: 2,026, up 23 percent.

*SX4 was up 33 percent, to 997.

*Kizashi sales fell 2 percent, to 468.

20. Saab Cars North America: 429, off 61.9 percent.

*Reported at saabsunited.com

*Sales of the 9-5, at 191, edged out the 9-3, at 190.

*48 9-4xes sold.

Compacts:

1.)   Chevy Cruze               18,097

2.)   Toyota Corolla          16,147

3.)   VW Jetta                     15,023

4.)   Hyundai Elantra        14,386

5.)   Honda Civic                13,724

Midsize sedans:

1.) Toyota Camry             24,851

2.) Nissan Altima             24,356

3.) Ford Fusion                 19,510

4.) Honda Accord            18,659

5.) Hyundai Sonata         18,181

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Almost Malaise: August Car Sales Up 7 Percent, Domestics Healthy

August new car and truck sales were better than expected, though the upswing fell short of pre-stalled economy, pre-Japanese earthquake trends. Total U.S. sales reached about 1.1 million for the month, including medium- and heavy-duty trucks, according to Ford Motor Company’s George Pipas. The month was trending below predictions that annual sales will reach at least 13 million by the end of the year. The seasonally adjusted annual rate was somewhere in the mid-12 million range, with retail sales making up about 9.7 million SAAR.

GM says Hurricane Irene may have hurt sales by just 1,000 units, though it’s offering a vehicle replacement plan for those of you who have lost your car or truck to floods or other damage. It will offer $500 toward the purchase or lease of a new GM model, and through its Allied Financial, a 90-day payment deferral.

Chrysler led healthy domestic automaker increases, up 31 percent over its dismal August ’10 numbers, enough to edge out Toyota by just 636 cars and trucks and make the Detroit Three the Big Three for the third consecutive month. That’s not likely to carry into September. Toyota says full production will be back up this month, half a year after the Japanese earthquake and tsunami, and it’s pulling forward the on-sale date of its new, ’12 Camry by two weeks, into late September. The Camry hybrid’s November introduction has not changed.

Honda was again hardest hit of the Japanese brands, with sales off 27.2 percent. Kia sales, not coincidentally, was up 26.8 percent. Smaller, struggling Japanese brands Mitsubishi and Suzuki also posted gains. Mitsu was up 86 percent over August ’10, though the Mazda3 still managed to outsell its entire lineup.

Ford’s bestseller was, as usual, the F-Series, followed by the Escape, which is about to be replaced. Is that due to fleet sales, or is there some real nostalgia for the Escape?

The Chevy Cruze outsold the Ford Focus, and all other compacts. Ford says its Focus is production-constrained, but Chevy says the same thing about the Cruze. Last month’s Cruze numbers were higher than August ‘10’s Toyota Corolla numbers, and just 906 below August ‘10’s Honda Civic number. The Japanese parts shortage has hit Civic very hard since the all-new ’12 model’s launch.

Toyota and Ford will increase fourth-quarter production beyond previous plans because they anticipate a strong early ’12 model year. GM is optimistic, too, saying that despite the stalled economic recovery, many households have saved money, can get good finance deals and have pent-up demand for new cars and trucks.

The domestics, in fact, are optimistic about their fourth-quarter sales because they believe all automakers will benefit from heightened interest when the Japanese brands get their inventories back up to snuff.

Perhaps they’re right. New models like the Chevy Cruze and even the Chrysler 200, introduced this year seem to be bringing consumers back into the showrooms, even as aging models like the Buick Enclave and Ford Escape remain strong. Even with weak housing sales and high unemployment, many of the employed, at least, have held onto vehicles for up to three extra years, while others had to turn in lease vehicles and buy used.

Before we go to the numbers, allow me to mention that I’m now Tweeting on monthly sales and other car stuff @MT_Lassa …

1. General Motors: 218,479, up 18.0 percent.

*First, the muscle/ponycar race. Chevy Camaro, 6,823, up 7.9 percent, Ford Mustang, 5,718, up 2.7 percent, Dodge Challenger, 3,159, off 4 percent.

*Chevy Cruze totaled 21,897, its fifth month above 20k.

*Chevy sold 302 Volts in August, and 203 Caprice cop cars. Sonic sales began, with 280 sold.

*Equinox was up 57.6 percent, to 16,606.

*Malibu was off 1.9 percent, to 17,840, but outsold the fleet-intense Impala, which was off 23.1 percent, to 13,329.

*Silverado was up 8.1 percent, to 36,832. Sierra was up up 13.8 percent, to 13,244 . Total big truck sales, 50,076.

*GM’s Lambda trio did well, with Chevy Traverse up 43.7 percent, to 11,281, GMC Acadia up 53.7 percent, to 6,491, and Buick Enclave up 17.2 percent, to 5,387.

*Total Buick sales rose 12.1 percent, to 16,021.

*Cadillac CTS had a good month, up 39.2 percent, to 5,783. SRX was up 7 percent, to 4,627 and total Caddy was up 4.1 percent, to 13,208.

2. Ford Motor Company: 175,220, up 11.2 percent.

*F-Series, at 48,795, is up 2.4 percent, but falls below Silverado/Sierra’s total.

*Escape was up 5.2 percent, to 20,607.

*Fusion is Ford’s bestselling car, up 4.9 percent, to 17,925.

*Ford cites short supply as Focus sales fall 8.9 percent, to 14,093.

*Fiesta was up 76 percent over a launch month last year, at 5,833. Hyundai Accent, which beat Fiesta last month, was 544 units short of that this month.

*Explorer was up 300.2 percent, to 9,901, while Flex was up 23.5 percent, to 2,823.

*Lincoln was up 24.5 percent, to 8,006, but the difference wasn’t enough to make up for 0 Mercurys sold, versus 7,040 the previous August.

*Body-on-frame sedans are partying like it’s 1999. Crown Victoria was up 140.8 percent, to 4,879, and Ford said much of that went to government fleet. Police departments want to get the newest ones possible. Lincoln Town Car was up 45 percent, to 1,196.

3. Chrysler LLC: 130,119, up 31 percent.

*Jeep Wrangler was again the second-bestseller, up 69 percent, to 12,949. It edged out Dodge Grand Caravan, up 32 percent, to 12,172.

*Ram pickup was up 12 percent, to 21,243.

*Grand Cherokee was up 77 percent, to 11,320.

*Surprise! The power of advertising (and maybe fleet sales). Chrysler sold 10,861 200s, compared with 4,498 Sebrings last year. Dodge Avenger was up 38 percent, to 6,319.

*Dodge Charger was off 37 percent, to 4,174.

*Chrysler 300 was 2,835, off 5 percent.

*Dodge sold 5,222 of its new Durangos, and its facelifted Journey was up 34 percent to 5,019.

*Fiat sold 3,106 of its 500s, a total of 11,088 year-to-date.

4. Toyota Motor Sales: 129,483, off 16.1 percent.

*Camry is back on top, at 30,185, off 5.7 percent.

*Prius was off 22.7 percent, though, to 9,491.

*Corolla fell 22.1 percent, to 16,420.

*Tundra was off 9.9 percent, to 6,752.

*RAV4 slid 57.5 percent, to 6,502.

*Lexus division was off 10.6 percent, to 18,103.

*Lexus RX fell 26.5 percent, to 6,504.

*The CT hybrid, though, is selling at more than twice Lexus’ expectations. The division sold 2,087 last month.

5. Nissan North America: 91,541, up 19.2 percent.

*Altima is the company’s bestseller again, at 23,016, up 24.5 percent.

*Sentra was off 1.8 percent, to 8,061.

*Versa climbed 14.9 percent, to 8,566.

*Nissan sold 1,362 Leafs, more than four times Chevy Volt sales.

*It sold 3,464 Jukes last month.

*Titan was up 10 percent, to 2,355 and Frontier was up 29.6 percent, to 4,843.

*Infiniti division was off 4.3 percent, to 9,024.

*G sedan was up 8.7 percent, to 4,267. G coupe was off 14.6 percent, to 1,281.

6. American Honda: 82,321, off 27.2 percent.

*Accord was off 21.2 percent, to 18,439.

*Civic fell 49 percent, to 12,083.

*CR-Z was up 3.2 percent, to 745.

*CR-V was off 18.1 percent, to 16,572, though Pilot was up 11.4 percent, to 9,825.

*Ridgeline free-fell 86 percent, to 214.

*Acura division was off 24.5 percent, to 9,054.

*MDX was bestseller, at 3,126, off 31.5 percent.

*TL was off 19.8 percent, to 2,404.

*TSX was off 10 percent, to 2,263, and 265 of them were wagons.

*Acura sold 81 ZDXes, off 81.8 percent.

7. Hyundai: 58,505, up 9 percent.

*Combined with Kia’s sales, total is 99,693, good for fifth place.

*Sonata leads, though off 3.3 percent, to 20,682.

*Elantra was also off, 0.8 percent, to 15,054.

*Santa Fe jumped 55.2 percent, to 8,828.

*Accent was up 37.5 percent, to 5,289.

*Genesis was up 12.6 percent, to 3,253.

8. Kia: 41,188, up 26.9 percent.

*Sorento is the bestseller, becoming a threat to the supply constrained Toyota RAV4 and Honda CR-V. It was up 50 percent, to 13,573.

*Soul outsold Forte and Optima, at 6,885, off 1.9 percent.

*Forte was up 6.7 percent, to 6,677.

*Optima was up from 1,714 for the old model to 6,157 for the new model last month.

9. Volkswagen: 25,232, up 10.4 percent.

*Jetta is hot, up 35.9 percent, to 14,500, with 1,897 of those wagons.

*Golf was up 36.2 percent, to 3,236.

*Tiguan was up 25.5 percent, to 2,006.

*CC fell 8.9 percent, to 2,371.

10. BMW Group: 23,924, off 0.2 percent.

*BMW brand was up 6.5 percent, to 20,815.

*Mini was off 29.7 percent, to 3,109. BMW says the brand was short on inventory due to a model-year change.

11. Mazda: 22,632, up 14.7 percent.

*Mazda3 was up 4 percent, to 9,424.

*2 had its best month ever, at 1,387, up 195.7 percent.

*CX-7 was up 58.7 percent, to 4,188.

*Miata was up 9.7 percent, to 600.

12. Subaru: 20,837, off 6.3 percent.

*Outback sales fell 6 percent, to 7,572. Dealer inventory of all but the U.S.-built Legacy is very low.

*Forester fell 11.1 percent, to 6,429.

*Legacy and Tribeca posted Subie’s only gains. Legacy was up 10.3 percent, to 3,271. Tribeca was up 10.2 percent, to 205.

13. Daimler-Benz: 20,728, up 5.4 percent.

*Bestseller E-Class fell 4.3 percent, to 5,628.

*M-Class was off 11.4 percent, to 2,191.

*GLK was up 35.6 percent, to 1,933.

*Mercedes delivered 7 hydrogen-powered B-Classes here last month, a total of 12 year-to-date.

*smart sold 405 units, Sprinter sold 1,846, up 117.7 percent.

14. Audi: 10,201, up 11.1 percent.

*The new A6 accounted for 989 sales, up 36.4 percent.

*A7 totaled 703.

*A4 was Audi’s bestseller again, off 8.3 percent, to 2,623.

15. Mitsubishi: 7,985, up 86 percent.

*Lancer totaled 2,121, including 215 Evos and 142 Sportbacks.

*Galant rose 42.4 percent, to 1,078.

*Outlander Sport accounted for 1,564 units.

16. Volvo: 5,215, up 17.4 percent.

*Top-seller is the S60, at 1,544 units.

17. Jaguar/Land Rover: 3,617, off 9 percent.

*Land Rover was up 10 percent, to 2,807.

*Jaguar was off 43 percent, to 810, as the brand went through its model year changeover.

18. American Suzuki: 2,409, up 32 percent.

*Grand Vitara was the biggest gainer, up 39 percent, to 470.

*SX4 was up 38 percent, to 1,181.

*Kizashi was up 19 percent, to 570.

19. Porsche: 2,184, up 7 percent.

*Cayenne leads again, up 13.8 percent, to 882.

*Panamera fell 15.6 percent, to 529.

*911 rose 25.3 percent, to 470.

*Boxter and Cayman rounded Porsche out, up 18.8 percent, to 303.

20. Saab: 363, up 25.2 percent.

*I found this at the website, saabsunited.com

*9-3 sales fell by 83 units, but 9-5 was up 91 units and 65 units of the 9-4x were sold.

Compacts, August ‘11:

1.)   Chevy Cruze                           21,897

2.)   Toyota Corolla                      16,402

3.)   Hyundai Elantra                    15,054

4.)   VW Jetta                                 14,500

5.)   Ford Focus                            14,093

Midsize cars, August ‘11:

1.)   Toyota Camry                        30,185

2.)   Nissan Altima                         23,016

3.)   Hyundai Sonata                     20,682

4.)   Honda Accord                       18,439

5.)   Ford Fusion                           17,925

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Ford sales in China growing at triple the industry rate

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Slowing Auto Sales Prompts New Chinese 'Cash for Clunkers'

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Ford predicts 50% global sales increase by 2015, return dividends

Ford’s Alan Mulally has looked into his crystal ball and he sees a bright future for Ford. Really bright.

According to the mid-decade report released earlier today at Ford, the folks at the Blue Oval are predicting global sales to increase by “approximately 50 percent” by 2015, which translates to 8 million annual global sales.

To give a little perspective, in 2010 Ford moved 5.3 million vehicles worldwide – meaning it expects not only to continue growth as an individual company, but it is also anticipating industry-wide growth as the world’s economies continue to stabilize. Ford is not just looking to bump volume, as the automaker says it also expects to raise its global automotive profit margins from 6.1 percent (2010) to 8-9 percent by 2015. North American automotive profit margins are projected to reach an even higher 8-10 percent by mid-decade.

In the past Ford has been plagued by dramatic peaks and valleys in product portfolios, caused largely by allowing successful products to linger in the market far too long. To combat that, Ford announced that it intends to spend roughly $6 billion annually on capital spending by 2015, compared to just $3.9 billion in 2010.

Down with the debt
Ford also reiterated its commitment to quickly and safely paying down its debt, scheduling another $2.3 billion in pay down for the second quarter of this year, with $800 million from its revolving credit line already paid down.

Ford’s debt peaked in 2009 at $33.6 billion, which was down to $16.6 billion by March 31, 2011, with Ford projecting a reduction to $10 billion by 2015.

What about the stockholders?
Ford knows that stockholders are getting anxious about returning to paid dividends, so stockholders should breathe a sigh of relief as Ford committed to returning dividends once the company returns to investment grade in the near future.

“We will continue to focus on maintaining healthy, growing operating margins and creating long-term value,” said Lewis Booth, Ford executive vice president and chief financial officer.

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2012 Ford Mustang Sales Hampered By V-6 Availability

2011 Ford Mustang V-6. Photo: Anne Proffitt.

Ford could sell more 2012 Mustangs, if only they could produce more 3.7-liter V-6 engines. The Mustang is yielding sales ground to the new Camaro on a monthly basis, thanks in part to strong demand for the V-6 version of Ford’s F-150 pickup. The Ford F-150 and the Ford Mustang share the same V-6 powerplant, and Ford sells a lot more F-150s than they do Mustangs. In 2010, Ford moved 73,716 Mustangs; by comparison, the automaker sold over half a million F-Series trucks. If you’re a product planner, which line gets a higher priority for engine supply?

The recent announcement that Mazda is pulling out of the Flat Rock, Michigan plant shared with Ford only makes matters worse. Ford builds the current Mustang in Flat Rock, alongside the Mazda6. With Mazda gone, there isn’t enough volume at the plant to make operations profitable, at least according to Jeff Schuster, an automotive analyst with J.D. Power and Associates. Discussing the current Mustang versus Camaro battle, Schuster told Automotive News, “The Mustang on its current sales pace isn’t enough to sustain Flat Rock. The Camaro has a more modern feel and seems to draw more attention from a younger age group.”

Life won’t get easier for the Mustang any time soon, as Chevrolet will debut a more powerful and more fuel efficient V-6 in the 2012 Camaro. Supply shortages on the Mustang’s V-6 have trimmed inventory to less than a 30 day supply, and that’s only half what Ford had in the pipeline at this time last year. Demand for the V-6 Mustang has risen from 40 percent of sales in 2010 to 51 percent of sales today, thanks in part to higher gasoline prices and the V-6 model’s superior fuel economy.

A new Mustang is in the works, but it’s not scheduled to be introduced until 2014, corresponding with the car’s 50th anniversary. Ford says the new Mustang will be a world car, and not having to share the Flat Rock plant with another manufacturer will give them greater flexibility on Mustang production. Whatever happens, this much is clear: the Mustang is an American icon, and it’s not going away anytime soon.

[Automotive News]

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The Week in Cars: Indy’s 100th, Flagging Sales and Fiat Owns Chrysler

The 100th anniversary of the Indianapolis 500 and the introduction of the 2012 Volkswagen Passat VR6 (the five-cylinder and TDI drive was weeks ago) kept me on the road, and that’s why I have no monthly sales blog, this week. Here’s my attempt to catch up.

Indianapolis 500

I was pulling for Tony Kanaan, who throughout the race quickly moved his way up the field, only to fall back on ill-timed pit stops. As you know, Dan Wheldon took a dramatic victory after the last turn, when leader and rookie J.R. Hildebrand augured into the wall. Wheldon’s contract with Bryan Herta Motorsport expired the night of his second 500 victory. Herta had no money left.

This is the great and the awful thing about the Greatest Spectacle in Motor Racing. It is, as Leon Mandel once wrote, “American Formula One.” Even after 100 years though, it’s a race a rookie nearly won, a race that a team with no money did win. One that Kanaan, who started 22nd in a field of 33, could have won. It has the excitement of the best of F1 racing, without the shlock of NASCAR.

I watched the race from Source Interlink’s Turn Two suite with my niece, Betsy, who’s 14, and my nephew, Jeffery, 11. They want to go again next year. I want them to see the kind of IndyCar racing that I listened to on the radio in the late ‘60s and early ‘70s. I’d like to see other new engine-builders join Chevrolet, which supplies engines beginning next year. (Three cheers for Chevrolet!) I’d like to see the Indy 500 again become a bigger deal than the World Series and a year’s worth of NASCAR races, while maintaining its odd combination of world-class sophistication and speed and aw-shucks Midwestern pragmatism.

May Sales

A slowing economy heading for a double-dip, the Japanese earthquake and tsunami tanking Toyota and Honda sales and GM cutting fleet sales all have been blamed for the industry’s 3.7-percent drop in U.S. sales last month. I’d bet that while the earthquake hurt Japanese-brand sales, it didn’t much affect American or European brands.

GM’s total sales dropped 1 percent while it reported a 9-percent hike in retail sales, and its market share was better than 20 percent. GM’s car and crossover sales are getting stronger, while it has a 100-day supply of big pickup trucks. Ford sales were virtually unchanged. Chrysler passed Toyota for third, with help from strong Jeep sales and the Chrysler 200, and Hyundai combined with Kia, which both companies hate to do, outsold Honda last month. Chrysler won’t stay ahead of Toyota, though Hyundai/Kia were inching up on Nissan and Honda, anyway. The Japanese parts shortages only accelerated that trend.

The Chevrolet Malibu was America’s most popular midsize car, though that model continues to rely on daily rental fleet sales. Less so the Chevy Cruze, which was strong at 22,711 units for the month. That’s just 408 units ahead of the Ford Focus, which mostly consisted of the new ’12 model. I give the Focus no more than two or three months to catch, and permanently pass, the Cruze. The Chevy Camaro continues to pound the Ford Mustang, though, 9,451 to 6,607.

Meanwhile, Ford announced another price increase. Higher prices, lean production plans and lowered U.S. brand incentives are what’s really affecting auto sales, at a time when the consumers who still have jobs aren’t growing their incomes. This is bad for middle-class consumers, while higher profit margins in the face of lower sales and production ultimately is good for the automakers.

Fiat Buys Treasury’s Remaining Chrysler Shares

It will take the U.S. Treasury Department up to 90 days to approve and complete the deal, but consider it done. Fiat Auto is paying Treasury $500 million for its remaining 6.6 percent of Chrysler, which will make the Italian company majority owner at 52 percent. Fiat gains another 5 percent when the Dodge PF 40-mpg compact goes on sale just before the end of the year. Fiat is running out of reasons to issue an Initial Public Offering for Chrysler and instead swallow it whole (or let the UAW retiree benefit fund hold on to the other 43 percent).

Is this another DaimlerChrysler deal? Is it like Chrysler buying out AMC to get Jeep? Sergio Marchionne seems to have as much passion for Chrysler as he does for Fiat, and the Chrysler execs who have stayed on, such as Ralph Gilles, are unabashedly optimistic about their employer’s future. Daimler bought Chrysler in 1998 in order to provide a cheap-car counterpoint to Mercedes-Benz. It misunderstood the Chrysler brand, and stripped the Chrysler Group of its resources on the way to dumping it off on Cerberus in 2007. Bob Nardelli’s arrival at the Auburn Hills HQ, for a Plymouth Prowler gathering, no less, was Chrysler’s darkest day in a long string of them. If Marchionne does keep the Dodge and Chrysler brands for the long-term, even mostly on Fiat/Alfa platforms, the company faces its brightest future since 1926.

Three-banger Ford

Ford announced it will build a 1.0-liter, three-cylinder EcoBoost turbo engine, and the Fiesta, which currently runs a 1.6-liter four is probably the recipient. No surprise – with the four, the Fiesta’s fuel mileage is marginally better than the Focus’. In SFE trim levels, the Fiesta beats the Focus’ city mileage by 1 mpg, and only matches highway mileage, at 40 mpg. Ford proudly notes that it sold 29,423 small cars last month, but just 7,120 of those were Fiestas, while 22,303 were Foci. Probably more important for Ford was its concurrent announcement it will build a new, 8-speed automatic transmission, to keep up in the cog count with GM and Chrysler.

Mulally’s Successor

The 65-year-old Ford Motor Company executive officer, Alan Mulally, says he has no plans to retire. Apparently, chairman and scion William Clay Ford is preparing for a contingency. He was quoted at the Mackinac Policy Conference, a mostly state government-oriented annual meeting on an island filled with horses and bikes, but no cars, as saying Mulally’s successor will probably be selected from within FoMoCo. I’d put my money on Mark Fields over Jim Farley. Derrick Kuzak is the wild card.

Mark Reuss on Autonomous Cars

At the same Mackinac Policy Conference, GM North America President Mark Reuss floated an idea for a pilot program featuring the corporation’s EN-V technology. This is the “pod car” concept unveiled recently; an electric-powered personal mass transit vehicle that drives itself. Reuss said he’d like a pilot program to introduce the system to the city of Detroit, as well as Shanghai. Commuters would pay to use the pods to go from door-to-door, much as they pay for public transportation now to get within walking distance. It reminds me of the Michelin Challenge Bibendum green transportation conference in 2004, when GM announced a pilot program to test shiny new fuel-cell buses in host-city Shanghai. Meanwhile, ugly, broken-down buses were transporting people who couldn’t afford reliable cars around GM’s hometown. Why didn’t the Motor City get fuel-cell buses?

Before I say “I told you so” about autonomous cars, I must add that Reuss was emphatic this is a “what if” kind of dream. Still, he says GM already has autonomous personal transportation pod technology. He deserves lots of credit in pushing an idea that could be a boon to our economically devastated city. I’d still like to see GM get into light- and high-speed rail and take advantage of the controversial efforts to improve those systems in the U.S. Maybe Ford and Chrysler could get involved, too. After all, this isn’t like when GM got into kitchen appliances or Ford sold TVs. This is the transportation business.

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VW sales up nearly 15% for VW in 2011

New Cars Home

Learn more about new cars with our extensive collection of overviews, specifications, and pictures.

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Report: Hyundai/Kia to surpass Toyota, Chrysler, Honda in May sales

Leftlane has been reporting on the seemingly endless supply of positive news coming from Hyundai and Kia as they continue to quickly grow their market share in the U.S., while at the same time former market leaders Toyota and Honda continue to tumble.

While the list of factors for and against each respective automaker continues to grow in complexity with each passing day, the news that Hyundai/Kia are expected to outsell both Toyota and Honda when May’s sales are tallied will likely simultaneously catch many off guard while others will see the swap as an inevitable change. Whatever your stance, the preliminary numbers have been crunched by TrueCar and all signs point to a new number three automaker in the U.S.: Hyundai/Kia.

As the effects of the natural disasters in Japan begin to actually catch up with the market, new car sales in the U.S. are expected to drop 3.7 percent compared to the same month last year, to just 1,060,392 vehicles sold. Put into more recent context, that even marks a significant decline compared to April of this year which showed a Seasonally Adjusted Annualized Rate (SAAR) of 13.18 million vehicles, compared to an expected SAAR of just 11.85 million in May.

But the big story comes from a mix of Asian automakers as they continue to battle for market share in the U.S. Hyundai/Kia are expected to report 115,434 unit sales, a massive 43.4 percent jump from the same month last year. While the Koreans are moving forward with a vengeance, Toyota is expected to fall back from the number three rank with just 109,416 forecast sales in May, down 32.8 percent from 2010 levels.

Honda is also suffering, expected to produce just 92,889 sales, which would mark a 25.6 percent drop from last month’s numbers and 20.7 percent lower than the same month a year ago. Chrysler is expected to produce 110,132 sales, a little over a five percent gain compared to 2010 and enough to secure the fourth most sales for a manufacturer.

General Motors and Ford will maintain their one and two ranks, with GM producing an expected 225,394 vehicle sales, while Ford will report about 188,280 vehicles sold.

Will it continue? Only time will tell how much Toyota and Honda (among other Japanese automakers) will bounce back once production capacity returns to normal, but in the meantime Hyundai/Kia and U.S. automakers will gladly continue to provide consumers with viable alternatives that continue to erode away precious market share from the Japanese automakers.

References
1.’Hyundai/Kia has third…’ view

View the original article here

Report: Hyundai/Kia to surpass Toyota, Chrysler, Honda in May sales

Leftlane has been reporting on the seemingly endless supply of positive news coming from Hyundai and Kia as they continue to quickly grow their market share in the U.S., while at the same time former market leaders Toyota and Honda continue to tumble.

While the list of factors for and against each respective automaker continues to grow in complexity with each passing day, the news that Hyundai/Kia are expected to outsell both Toyota and Honda when May’s sales are tallied will likely simultaneously catch many off guard while others will see the swap as an inevitable change. Whatever your stance, the preliminary numbers have been crunched by TrueCar and all signs point to a new number three automaker in the U.S.: Hyundai/Kia.

As the effects of the natural disasters in Japan begin to actually catch up with the market, new car sales in the U.S. are expected to drop 3.7 percent compared to the same month last year, to just 1,060,392 vehicles sold. Put into more recent context, that even marks a significant decline compared to April of this year which showed a Seasonally Adjusted Annualized Rate (SAAR) of 13.18 million vehicles, compared to an expected SAAR of just 11.85 million in May.

But the big story comes from a mix of Asian automakers as they continue to battle for market share in the U.S. Hyundai/Kia are expected to report 115,434 unit sales, a massive 43.4 percent jump from the same month last year. While the Koreans are moving forward with a vengeance, Toyota is expected to fall back from the number three rank with just 109,416 forecast sales in May, down 32.8 percent from 2010 levels.

Honda is also suffering, expected to produce just 92,889 sales, which would mark a 25.6 percent drop from last month’s numbers and 20.7 percent lower than the same month a year ago. Chrysler is expected to produce 110,132 sales, a little over a five percent gain compared to 2010 and enough to secure the fourth most sales for a manufacturer.

General Motors and Ford will maintain their one and two ranks, with GM producing an expected 225,394 vehicle sales, while Ford will report about 188,280 vehicles sold.

Will it continue? Only time will tell how much Toyota and Honda (among other Japanese automakers) will bounce back once production capacity returns to normal, but in the meantime Hyundai/Kia and U.S. automakers will gladly continue to provide consumers with viable alternatives that continue to erode away precious market share from the Japanese automakers.

References
1.’Hyundai/Kia has third…’ view

View the original article here

Report: Hyundai/Kia to surpass Toyota, Chrysler, Honda in May sales

Leftlane has been reporting on the seemingly endless supply of positive news coming from Hyundai and Kia as they continue to quickly grow their market share in the U.S., while at the same time former market leaders Toyota and Honda continue to tumble.

While the list of factors for and against each respective automaker continues to grow in complexity with each passing day, the news that Hyundai/Kia are expected to outsell both Toyota and Honda when May’s sales are tallied will likely simultaneously catch many off guard while others will see the swap as an inevitable change. Whatever your stance, the preliminary numbers have been crunched by TrueCar and all signs point to a new number three automaker in the U.S.: Hyundai/Kia.

As the effects of the natural disasters in Japan begin to actually catch up with the market, new car sales in the U.S. are expected to drop 3.7 percent compared to the same month last year, to just 1,060,392 vehicles sold. Put into more recent context, that even marks a significant decline compared to April of this year which showed a Seasonally Adjusted Annualized Rate (SAAR) of 13.18 million vehicles, compared to an expected SAAR of just 11.85 million in May.

But the big story comes from a mix of Asian automakers as they continue to battle for market share in the U.S. Hyundai/Kia are expected to report 115,434 unit sales, a massive 43.4 percent jump from the same month last year. While the Koreans are moving forward with a vengeance, Toyota is expected to fall back from the number three rank with just 109,416 forecast sales in May, down 32.8 percent from 2010 levels.

Honda is also suffering, expected to produce just 92,889 sales, which would mark a 25.6 percent drop from last month’s numbers and 20.7 percent lower than the same month a year ago. Chrysler is expected to produce 110,132 sales, a little over a five percent gain compared to 2010 and enough to secure the fourth most sales for a manufacturer.

General Motors and Ford will maintain their one and two ranks, with GM producing an expected 225,394 vehicle sales, while Ford will report about 188,280 vehicles sold.

Will it continue? Only time will tell how much Toyota and Honda (among other Japanese automakers) will bounce back once production capacity returns to normal, but in the meantime Hyundai/Kia and U.S. automakers will gladly continue to provide consumers with viable alternatives that continue to erode away precious market share from the Japanese automakers.

References
1.’Hyundai/Kia has third…’ view

View the original article here

Bosch CEO: U.S. diesel sales could hit 10 percent by 2015

Friday, May 13th, 2011 @ 12:04 p.m.

Diesel-powered vehicles only make up about 3 percent of the United States market, but Bosch CEO Peter Marks expects that figure to increase by more than threefold over the next four years.

Speaking at an event in Detroit, Marks said he expects diesels to account for as much as 10 percent of all U.S. vehicle sales by 2015. Marks believes U.S. diesel sales will be spurred by fuel economy ratings in excess of 50mpg, as well as their relatively low cost of entry. Diesel engines typically add $1,200-$2,800 to the cost of a vehicle, undercutting more complex hybrid technology.

“Clean diesel allows drivers to have improved fuel economy, reduced emissions, while still having a car with power and performance,” Marks said.

There are currently 20 vehicle in the United States offered with diesel engines, but Marks sees that figure doubling to 40 in the coming years. Even brands like Chrysler’s Jeep have confirmed they are at least considering diesel powertrains for their mainstream U.S. vehicles.

References
1.’Diesel use to…’ view

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Volvo nearly doubles Q1 earnings, grows sales

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Bosch: Diesels Could Be 10 Percent Of U.S. Sales By 2015

If Peter Marks, Bosch’s chairman, president and CEO of North and South American operations, is correct, you’ll soon begin to see a lot more diesel vehicle options in the United States market.

While diesel vehicles currently account for just 3 percent of new vehicle sales, changing market conditions in the U.S. and Europe could see that number climb to 10 percent over the next four years. By then, Marks projects that clean-diesel passenger cars could see fuel efficiency as high as 54 mpg, at an added cost of between $1,200 and $2,800 compared to gasoline-fueled vehicles.

Marks expects that automakers will double the amount of diesel-equipped models offered in the United States from 20 today to 40 by 2015. Helping diesel’s growth in the U.S. are stricter EU regulations for diesel emissions that go into effect over the next few years. Today, the United States has the strictest emission standards for diesel passenger vehicles in the world, which makes it expensive for manufacturers to certify diesel engines for sale in the United States. As emission regulations in the U.S., and the EU become more similar, the cost of offering diesel options for U.S. customers will go down. 

Today, only VW, BMW, Audi and Mercedes offer diesel passenger cars for sale in the United States. Audi has previously committed to add a diesel version of all cars sold in the United States by 2015, so there’s good reason to believe that Marks’ vision of the future is accurate. It's unlikely that small diesels will dominate the automotive landscape any time soon, but even a 10 percent share of sales is a step in the right direction.

[Detroit Free Press]

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Update: Prius V U.S. sales on-schedule for fall 2011

Friday, May 13th, 2011 @ 7:18 p.m.

Toyota says that it accepted 25,000 orders in Japan for its larger Prius Alpha model – known overseas as the Prius V and Prius+ – ahead of its official on sale date today.

Despite being delayed by the magnitude-9 earthquake and resulting tsunami that rocked Japan two months ago, the automaker saw high demand for the three-row version of its standard Prius. The automaker says that orders in Japan are more than eight times its intended 3,000 unit per month target.

Available in both five and seven-seat configurations in Japan, the Prius Alpha is about twice as fuel thrifty as most equivalently sized vehicles. The five seat model features carryover nickel metal hydride battery technology, but the seven seater uses pricier, lighter and smaller lithium ion batteries.

Pricing in Japan starts at around $29,000. The automaker has always had strong demand for the Prius in its home market and it anticipates the same for its larger Prius variation. Sales estimates for North America and Europe are around 2,000 units monthly each.

UPDATE on North American arrival
At its press introduction earlier this year at the North American International Auto Show in Detroit, Toyota told reporters that it planned to put the Prius V on sale in North America in April or May of this year. Obviously, april came and went and we’re halfway through May without the Prius V, but that delay was due to unforseen circumstances coming from the earthquake that rocked Japan.

Reports earlier today suggested a second delay might push North American Prius V sales into 2012, but Toyota’s North American operations have announced that the delay of the Japan-market Prius Alpha is due to the earthquake, but all indicators suggest the Prius V will come to North America this fall.

Currently, Toyota says it can only build 1,000 Prius Vs with the advanced lithium ion battery a month, although it is capable of assembling around 2,000 nickel metal hydride versions. As a result, it says that export models might not be built until production is ramped up toward the end of 2011.

References
1.’Toyota’s new Prius…’ view

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Cruze Beats Corolla As GM Leads a Strong Sales Month

After losing the sales race to Ford in March, General Motors came out swinging in April, with a 26.4 percent sales gain over April 2010. Ford posted a 24.5 percent gain over a particularly strong April ’10. GM’s margin over Ford a year ago was 21,001. Last month, the margin was 49,996.

Both GM and Ford estimate April industry sales of about 1.7 million including medium and heavy-duty trucks. That’s a Seasonally Adjusted Average Rate in the mid-13 million range, in case you care about that.

Chevrolet had a big month in selling sedans. It sold a record 25,160 Cruzes to 24,701 Malibus and 21,071 Impalas. Break out retail sales among Cruze and Malibu, however, and the compact’s sales consisted of 18,470 retail units and 6,690 fleet, while the midsize car, which will be replaced early next year with the 2013 Malibu, sold 13,599 retail and 11,102 fleet. The ancient Impala is heavily fleet.

Both Chevy and Ford already seem to be benefitting from slowed production at Japanese automakers.

GM’s push to move the compact class out of the bargain basement seems to be working. Chevy sales chief Alan Batey says the average transaction price of a Cruze is about $19,000, while the ATP for the Malibu is about $21,000.

We’re downsizing our engines, too. There is a replacement for displacement, according to Ford’s George Pipas. In December, Ford sold 100 percent of retail F-150s with V-8s. Last month, half of the F-150s sold retail left dealers’ lots with V-6s. The EcoBoost 3.5-liter made up 37 percent of F-150 retail sales, while the naturally aspirated 3.7 V-6 accounted for 13 percent.

Ford says strong truck fleet sales points to an improving commercial market, and national economy.

GM says its retail sales increased 25 percent over a year ago, with passenger car retail up 49 percent and crossover retail up 28 percent. Fleet sales comprised 33 percent of GM’s April ’11 number and 36 percent of Ford’s numbers. Year-to-date, they comprise 26 percent of GM’s sales and 34 percent of Ford’s. However, Ford breaks its fleet sales out in terms of the more profitable government and commercial fleet, which accounted for 20 percent in April and 19 percent year-to-date, versus daily rental fleet, which was 16 percent and 15 percent. Half of Ford’s April fleet sales consisted of F-Series, Econolines and Crown Victorias.

Toyota says fleet sales remain under 10 percent and that share will decline as the Japanese earthquake and tsunami takes its effect on the company’s production. The resulting parts shortages and factory power outages has affected supply more than sales, though if you don’t like the color selection of your local dealer’s Prii, you might go to a competitor. Toyota reports a 45-day supply of Camrys and about 40 days for Corolla. Prius is down to 10 days, though Toyota promises it will find you one before it turns away any customers.

And so, to the numbers …

1. General Motors 232,538, up 26.4 percent.

At 25,160, the Chevrolet Cruze passed Toyota Corolla last month. That compares with 13,701 Cobalts sold in April ’10 (Chevy also sold 37 Cobalts last month).April was a strong month for Camaro and Mustang, though Challenger was down. Chevy sold 10,852 Camaros, up 18.6 percent, to 8,180 Ford Mustangs, up 59 percent. Dodge sold 3,617 Challengers, off 3 percent.Chevy sold 29,342 Silverados, off 0.9 percent. Combined with Avalanche (1,339, -12.5 percent) and GMC Sierra (10,523, +12.4 percent), GM trucks fall 4,231 units short of Ford F-Series sales.Chevy sold 17,067 Equinoxes, up 42.4 percent, and 9,666 Traverses, up 7.2 percent.Buick sales rose 51.2 percent, to 18,413. LaCrosse remains its leader, at 5,649, up 7.9 percent. It sold 4,525 Regals and claimed a 49-percent conquest rate on that car.Cadillac sales rose 16 percent, to 13,127. CTS was up 28.7 percent, to 4,220, though SRX remains the brand’s volume leader, at 4,380, up 12.2 percent.Chevy delivered 493 Volts last month.

2. Ford Motor Company: 189,778 up 16.4 percent.

F-Series was up 11 percent, to 45,435.Ford Focus was up 22.4 percent, to 21,189. Of that, 12,324 were the new ’12 model, and 4,941 were the old. If you’re nostalgic for a straight-to-rental compact, Ford has about 2,500 ’11 Foci remaining.Fusion was up 11.7 percent to 21,189, falling behind Chevy Malibu’s retail/fleet sales.Ford claims the Explorer as a success, with 12,593 sold, up 137.9 percent over the old, body-on-frame model. Taurus was up 1.6 percent, to 6,262.Even with spy shots showing up for the ’13 Vertrek-inspired Escape, the old model sells well, at 21,240, up 10.9 percent.Lincoln sales fell 0.6 percent, to 7,236. The MKZ, at 2,546, up 40.1 percent, and the MKX, at 1,859, up 16.5 percent, were the only gainers. MKS plummeted 28.6 percent, to 828, MKT was off 27 percent to 456, and Navigator outsold its unibody sibling, at 604, off 35.6 percent. Dealers sold 0 Mercurys last month, down from 9,128 in April ’10.

3. Toyota Motor Sales: 159,540, up 1.3 percent

Sales were off 2.4 percent, when adjusted for daily sales rate (27 selling days in April ’11 versus 26 in April ’10). Like Ford last year, Toyota had a very good April ’10, with a 24.4 percent increase.Camry was up 5 percent, to 30,443 units, one of the few volume models posting an increase.Corolla was off 16.5 percent (by daily selling rate), to 24,215. Toyota is in the process of shifting some Corolla production from NUMMI in Fremont, California, to its Tupelo, Mississippi plant, and is filling in with more imported units.Prius was off 4.3 percent to 12,477.Scion tC was up 119.9 percent, to 2,674.Tundra was off 10.6 percent, to 8,312.Lexus sales fell 7.8 percent (daily selling rate) to 17,576.All Lexus cars were down, with 3,493 ES models (off 23.5 percent), while all Lexus trucks were up, with RX up 0.8 percent to 7,802.

4. American Honda: 124,799, up 5.7 percent.

Honda was up 5.9 percent, to 113,195, and Acura was up 4.2 percent, to 11.604.Accord sales fell 8.1 percent, to 30,310. Crosstour accounted for 2,130 units, off 16.5 percent.Civic was up 3 percent, edging out Chevy Cruze, with 26,777 sold.Fit sales rose 66.3 percent, to 8,116.Insight was up 35.4 percent, to 2,644 and 1,819 CR-Zs were sold.Odyssey sales fell 9.8 percent, to 9,954.Pilot sales were off 2 percent, to 9,488.CR-V was up 25.3 percent, to 21,683. Honda has delayed introducing its all-new ’12 CR-V by one month because of production problems associated with the earthquake.MDX was Acura’s bestseller, up 1.4 percent, to 3,912.TSX was next, at 3,105, up 14.7 percent. Of those, 365 were wagons.

5. Chrysler LLC: 117,225, up 22 percent.

Dodge brand was up 14 percent, to 44,320 and Jeep was up 65 percent, to 32,384.Ram brand was up 29 percent, to 19,260, though Chrysler brand was off 9 percent, to 20,379.Claims best April sales since ’08 and best midsize sales since March ’08.That would be 8,274 Chrysler 200s, up from last year’s 4,053 Chrysler Sebrings, and 7,577 Dodge Avengers, up 26 percent.Dodge Charger fell 5 percent, to 8,485, still well ahead of the Ford Taurus. With ’11 Chrysler 300 production ramping up, sales of this car dropped 21 percent, to 3,263.Jeep Grand Cherokee remains hot, at 9,802, up 189 percent, while the smaller, cheaper Dodge Journey languishes at 4,598, up 3 percent.Dodge Caravan was off 16 percent, to 8,793, while Chrysler Town & Country fell 34 percent to 8,842.Fiat sold 882 500s, up from cinquecento 500s in March.Ending Chrysler on a high note, Ram pickup was up 29 percent, to 19,260.

6. Nissan North America: 71,526, up 12.2 percent.

Nissan sold 64,765, up 14.5 percent. Infiniti was off 6.2 percent, to 6,761.Altima was up 16.7 percent, at 17,232.Sentra jumped 42.2 percent, to 9,367.Versa was off 2.8 percent, though, to 6,413.Nissan delivered 573 Leafs last month.Infiniti sold 2,588 G sedans, off 13.8 percent, and 1,267 G coupes, up 0.4 percent.

7. Hyundai: 61,754, up 40.3 percent.

If you combine Hyundai and Kia sales, the total is 108,828, good enough for sixth place.Elantra was its bestseller, up 128.8 percent to 22,100. Sonata was up 17.3 percent, to 21,738.Genesis was up 16.9 percent, to 2,648. Hyundai sold 222 Equuses, er, Equii.

8. Kia: 47,074, up 56.7 percent.

Bestseller Sorento was up 41.4 percent, to 12,001.Forte was up 47 percent, to 8,535.Optima was up 124.3 percent, to 6,533.

9. Volkswagen: 28,542, up 23.4 percent.

Remained ahead of Subaru on the strength of Jetta sales, which were up 74 percent, to 16,995.VW sold no Passats as it prepared for the ’12 model. CC sales rose 39.7 percent, to 3,163.Tiguan sales rose 47.8 percent, to 2,791.

10. BMW Group: 25,247, up 19.6 percent.

BMW brand was up 8.9 percent, to 18,801.Mini gained 67.7 percent, to 6,446.Cooper/Cooper S hardtop was up 43.7 percent, to 3,367, while the convertible was off 15.8 percent, to 565 and the Clubman fell 2.9 percent, to 805.Mini sold 1,709 Countrymen. Or is that Countrymans?

11. Subaru: 24,762, up 6.7 percent.

Says WRX/STI sales more than doubled, as part of Impreza’s 15 percent gain to 4,367.Outback was up 23.1 percent, to 9,465.

12. Mazda: 20,638, up 9 percent.

Bestseller 3 was off 7.9 percent, to 8,584.CX-7 was up 28.4 percent, to 2,873, while CX-9 was up 23.9 percent, to 2,750.Iconic Miata was up 14.2 percent, to 659.

13. Daimler AG: 19,624, up 3.8 percent.

Mercedes-Benz sold 18,042 cars and trucks, up 2.3 percent.That leaves 467 units for Smart, off 31.3 percent, and 1,115 Sprinters, up 85.8 percent.Mercedes E-Class was the bestseller, up 17.9 percent, to 5,342.

14. Audi: 10,018, up 7.5 percent.

A4 was the bestseller, up 4.8 percent to 3,328. Audi sold 408 A7s.

15. Mitsubishi: 8,081, up 106 percent.

Outlander and Outlander Sport combined sales were up 98 percent.

16. Volvo: 6,404, up 40.9 percent.

Led by the S60 at 1,972 cars, up 100 percent.

17. Jaguar/Land Rover: 4,231, up 16 percent.

Land Rover was up 8 percent, to 2,982.Jaguar was up 39 percent, to 1,249.

18. Porsche: 3,172, up 82 percent.

The new Cayenne leads the way, up 384 percent, to 1,578.

19. American Suzuki: 2,132, up 9 percent.

Kizashi is its bestseller, up 42 percent, to 577.

Compacts in March:

Honda Civic: 26,777Chevy Cruze: 25,160Toyota Corolla: 24,215Hyundai Elantra: 22,100Ford Focus: 17,265

Midsize cars in March:

Toyota Camry: 30,443Honda Accord: 30,310Chevy Malibu: 24,701Hyundai Sonata: 21,738Ford Fusion: 21,189

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March Sales: Gas Prices Push Compacts, Ford Beats GM

No April Fools here. It’s a good-news day for the economy. Unemployment fell to 8.8 percent, with 216,000 jobs added in March, the Bureau of Labor Statistics says, the lowest level in two years. Manufacturing contributed 17,000 jobs, many of them in the auto industry. Professional and business services added 78,000, although 37 percent of those were temp help jobs.

Manufacturing expanded by its fastest pace in nearly seven years, with help from both U.S. and overseas demand. Here in Michigan, the employment growth rate is running third highest in the nation, though unemployment remains in the double digits. Anecdotally, the Detroit Three are trying to lure computer geeks away from Silicon Valley. They may not be able to handle the weather, but they’ll like the housing prices. And Chrysler LLC is running out of room in its Auburn Hills tech center. So many of the new jobs in the Detroit Metro area are white collar, presumably with healthy salaries.

The automakers estimate March auto sales at 1.2 million units, up about 13.2 percent over March ‘10, counting medium and heavy-duty trucks. The seasonally adjusted average rate (SAAR) is running in the low 13-millions.

Still, statistics show little growth in average hourly rates, further widening this country’s long widening income gap. Sure, blame $3.65 per gallon gas, but perhaps slow income growth also is responsible for American consumers shifting to smaller cars. GM is trumpeting the fact that it sold 50,205 Chevy Cruzes in the first quarter of the year, compared with 48,725 Malibus and 49,541 Impalas. The Malibu and Impala have been trading places as Chevrolet’s number-one sedan in past months, and the Cruze passed them overall for the quarter by being second every month. Of 18,018 Cruzes sold in March, 15,541 were retail and 2,477 were fleet. Of 18,063 ancient Impalas, just 4,572 were retail and 13,491 were fleet.

Ford Motor outsold GM in March, as GM eased up on the incentives that gave it a strong January and February. GM says its March incentives were about the same as Ford and Chrysler’s, but above the industry average, in order to maintain, and gain market share.

B- and c-segment car retail market share for the industry increased from 19 percent in December 2010 to 21 percent in January/February, and to 25 percent in March, says Ford sales analyst George Pipas. Sport/utilities were off 4 points, to 29 percent retail market share, from December to March and full-size pickups were off 3 points, to 10 percent of retail share. Keep in mind these were numbers for the U.S. industry, not just Ford. However, Ford reported big numbers for its pickups and vans, including the Transit Connect, because it sold a lot of trucks to commercial fleets last month.

As evidence of oil price sensitivity, EcoBoost and 3.7-liter V-6 take rates on the F-150 are strong among retail buyers. B- and c-cars, or subcompacts and compacts, leveled off in the last three weeks of March as gas prices leveled (not unlike the spring 2008 scenario).

Pipas said he’s continuing to monitor whether fairly steady gas prices, or reduced small car inventory contributed most to this late-month flattening. Already, Fiesta inventory has dropped from a 60-day supply in late March to 40 days.

I’m concentrating on the Chevy Cruze, because it was the first new compact out after GM and Ford first said consumers were downsizing. They believe the compact segment will eventually pass the midsize segment, permanently, in the U.S. Chevy says its $19,000 Cruze average transaction price is $2,000 more than the soon-replaced Honda Civic and $3,000 more than the Toyota Corolla. Still, compare the Cruze’s ATP with GM’s average for cars, $25,900, reported for the second quarter of 2010.

GM has long claimed it can make money on small cars like the Chevy Cruze, but there’s a much bigger problem coming from the East. The Japanese earthquake and tsunami has affected the country’s domestic market and auto production. It has affected parts production, and power disruptions will affect production across the country for the next several months, at least. Publicly, GM, Ford, Chrysler and their foreign competitors are spinning the looming parts shortage. They’re “continually monitoring the situation” don’t have any shortage of models, yet. That will change later in the year if they don’t find alternate part supplies by mid-May. Second quarter profits across the industry could be in for a big, big hit.

And so, to the numbers …

1. Ford Motor Company: 212,777, up 19 percent.
First quarter: 496,720, up 15.9 percent.

Ford brand sales rose 28.2 percent, to 204,276.F-Series rose 25.3 percent, to 53,272.Twenty-two percent of ‘11 F-150 retail buyers bought the EcoBoost engine and 15 percent bought the 3.7 V-6. Ford’s retail order bank has a 40-percent take rate for the EcoBoost V-6.Fusion sales set a monthly record, at 27,566, up 21 percent. For the quarter, Ford has sold 65,023 Fusions, up 26.5 percent.Fiesta sales neared the 10k level, at 9,787.Escape was up 25 percent, to 23,975.Focus fell 11.9 percent, to 17,178 as the old model sold down. Only a handful of new ’12 Foci are in those numbers.Explorer was up 111.3 percent, to 12,482, and 10,828 of them were the new, unibody, transverse-engine ‘12 model.Explorer looks ready to take over for Flex, which has not been able to catch Chevy Traverse sales. Flex was down 28.8 percent, to 2,468.Lincoln dropped 2.2 percent, to 8,501 last month. Will it follow Mercury into the brand graveyard? Mercury sold 10,486 units in March ’10, and of course, zero last month.

2. GM: 206,621 up 9.6 percent.
First quarter: 592,545, up 24.1 percent

Chevy Silverado’s number was 32,555. Add 1,655 Avalanches (yes, Chevy still builds them) and 11,622 GMC Sierras to total 45,832 big trucks.Chevy Colorado was up 25.2 percent, to 2,561 and GMC Canyon was up 24.4 percent, to 765. Obviously, the temporary parts-shortage plant shutdown won’t affect these trucks.Chevy Camaro again beat Ford Mustang, though the gap is really thin. Camaro was up 0.7 percent, to 8,964 and Mustang was up 46.8 percent, to 8,557. Dodge sold 3,989 Challengers, up 24 percent.Impala was GM’s bestselling car, at 18,063 (+15.8 percent), mostly with fleet sales. Cruze was next, at 18,018 and Malibu was off 12.4 percent, to 15,551.Chevy Equinox was up 16.7 percent, to 14,949 and GMC Terrain was up 29 percent, to 6,301.Chevy Traverse was off 4.7 percent, to 8,230. GMC Acadia was off 5.9 percent, to 6,418. Buick Enclave was up 8.4 percent, to 4,899.Buick division was up 20.9 percent, to 15,663. Cadillac was up 4.5 percent, to 12,164.Chevy delivered 608 Volts, Rush.

3. Toyota-Scion-Lexus: 176,222, off 9.2 percent.
First quarter: 433,924, up 11 percent.

Toyota announced mid-year price increases that will affect cars and trucks at dealerships by May. The company says unfavorable exchange rates are responsible, and that the decision was made prior to the earthquake.Toyota reports no shortage of any models as a result of the earthquake. Like everyone else, Toyota is “monitoring” parts and production availability, and Prius and Lexus stand to be most affected.Lexus sales chief Mark Templin says the brand’s “pipeline is full” with Japanese-built models on the way.Corolla sales of 30,234, off 1.7 percent, nearly caught Camry sales, off 16.4 percent, to 31,464.Prius was up 52 percent to 18,605.Toyota has 12,250 Prii in U.S. inventory. It has an 18-day supply, versus 32 days at the beginning of March.Prius V’s August launch date in the U.S. has not been affected, so far.Tundra nosedived 32.9 percent, to 7,515. Tacoma was up 3.5 percent, to 10,144.Lexus division was off 1.5 percent, to 20,682.Lexus delivered 8 LFAs.

4. American Honda (includes Acura): 133,650 up 18.9 percent.
First quarter: 307,978, up 18.5 percent.

Accord beat Camry, with 33,616 sold, up 11.2 percent. Crosstour was off 22.5 percent at 2,083, despite a new ad campaign.Civic beat Corolla, up 33.8 percent to 31,213 as Honda tried to make room for the new model.Insight was up 62.2 percent, to 2,782.Honda sold 1,685 CR-Zs.Acura division was up 3.6 percent, to 12,611.TSX was off 11.9 percent, to 2,810, with 388 of those wagons.

5. Chrysler LLC: 121,730 up 31 percent.
First quarter: 286,950, up 23 percent.

Dodge brand was up 49 percent, to 44,102 and Jeep was up 36 percent, to 33,155.Chrysler sold 6,750 200s, versus 3,783 Sebrings last year (and 975 leftover Sebrings this March).Jeep Patriot was up 109 percent, to 5,602 and Compass was up 108 percent, to 3,703.The new Dodge Charger posted 8,986, up 44 percent, while Avenger was up 92 percent, to 5,954.Ram pickup was up 23 percent, to 21,898. Dakota was up 45 percent, to 1,612.Is this a joke? Fiat sold 500 500s.

6. Nissan North America (with Infiniti): 121,141, up 26.9 percent.
First quarter: 285,358, up 25 percent.

Nissan says this is a U.S. sales record for any month in its history. Despite that, it fell 589 units short of Chrysler.Altima outsold Camry at 32,289, up 31 percent.Sentra was up 104.7 percent, to 17,851 and Versa was off 19.8 percent, to 11,075.Titan was off 21.8 percent, to 1,920, and Frontier was up 12.7 percent, to 4,609.Murano was up 3.5 percent, to 5,682. Nissan sold 4,089 Jukes.Infiniti was up 13.5 percent, to 11,287.

7. Hyundai: 61,873, up 32 percent.
First quarter: 142,620, up 27.9 percent.

Add Kia sales for a total of 106,052, still seventh.Sold 22,894 Sonatas, up 20.9 percent.Good month for the new Elantra at 19,255, up 134 percent.Hyundai says 28 percent of its March sales units are rated 40 mpg highway, or higher.

8. Kia: 44,179, up 44.7 percent.
First quarter: 104,774, up 36.6 percent.

Bestseller Sorento was up 1,866 units, to 11,071.Soul nearly doubled, to 10,028.Optima was up 89.7 percent, to 6,891.

9. Mazda: 30,905, up 33.3 percent.
First quarter: 64,559, up 15.4 percent.

Passed Subaru, VW, BMW Group and Daimler since last calendar year’s numbers, with all models posting increases except the lame-duck Tribute (they still make -that?).The 5 minivan was up 139.4 percent, to 3,866.The 6 was up 15.3 percent, to 4,135.3 is the bestseller, at 12,467, up 9.8 percent.CX-9 was up 22.5 percent, to 3,635.CX-7 was up 30.7 percent, to 3,407.Spring is here: Miata was up 7 percent, to 645.

10. Volkswagen of America: 27,176, up 22.7 percent.
First quarter: 67,039, up 15.0 percent.

Best sales month in seven years, enough to move it ahead of Subaru and BMW Group.Add in Audi for a total of 36,944.Jetta was up 84.5 percent, to 16,969. Maybe there’s something to selling on price after all.CC was up 16.9 percent, to 2,331.Tiguan was up 12.5 percent, to 1,970.Golf was up 5.8 percent, to 3,106.

11. Subaru: 26,916, up 13.2 percent.
First quarter: 67,457, up 17.3 percent.

Slid behind Mazda and VW, but passed BMW Group.Outback was up 37.8 percent, to 10,498.Forester fell 9.9 percent, to 7,629.Legacy was up 27.6 percent, to 4,450.

12. BMW Group: 26,382, up 21.7 percent.
First quarter: 64,958, up 18 percent.

The new X3 posted 2,648 units, up 270 percent.5 Series was up 55.6 percent, to 4,491.Mini brand had its second-best sales month, ever in the U.S., at 6,087, up 68.6 percent. Its best month came the last time oil prices were rising; 6,312 units in May 2008.

13. Daimler AG: 22,971, up 11 percent.
First quarter: 57,262, up 10.2 percent.

Mercedes-Benz sold 21,484, up 9.4 percent.Smart sold 1,062, up 175.1 percent and Sprinter sold 425, off 37.2 percent.C-Class was up 8.9 percent, to 6,542.E-Class was up 21.1 percent, to 6,107.

14. Audi: 9,818, up 14.3 percent.
First quarter: 25,383, up 19.1 percent.

A4 was the bestseller, up 12.1 percent, to 3,428.R8 was the biggest gainer, up 103.8 percent, to 106.Q5 was up 22.5 percent, to 2,083.

15. Mitsubishi: 7,560, up 39 percent.
First quarter: 20,167, up 48 percent.

Outlander Sport was up 8.6 percent, to 1,401.

16. Volvo: 6,369, up 21.6 percent.

First-quarter sales are up 10.2 percent.Sold 1,952 S60s.

17. Jaguar/Land Rover: 4,315 up 16 percent.
Up 18 percent for the first quarter

Land Rover was up 26 percent, to 3,441.Jaguar was off 11 percent, to 874.

18. Porsche: 2,588, up 36 percent.
First quarter: 7,007, up 34 percent.

Cayenne sold 1,049, up from 397 in March ’10.Panamera sold 654, up from 542.911 was off, to 609 from 615. Boxster/Cayman fell to 276 from 351.

19. American Suzuki: 2,497, up 11 percent.
First quarter: 6,702, up 18 percent.

SX4 is the bestseller, off 14 percent to 1,070.Kizashi was up 77 percent, to 703.

Saab Cars North America: N/A

Compacts in March:

1.)   Honda Civic: 31,213

2.)   Toyota Corolla: 30,234

3.)   Hyundai Elantra: 19,255

4.)   Chevy Cruze: 18,018

5.)   Nissan Sentra: 17,851

Midsize cars in March:

1.)   Honda Accord: 33,616

2.)   Nissan Altima: 32,289

3.)   Toyota Camry: 31,464

4.)   Ford Fusion: 27,566

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Chrysler: Frequent Design Changes Key To Sales Growth

If you're shopping for a new car and have a preference for Chrysler Group products, expect to see frequent model updates from Chrysler, Dodge and Jeep in the coming years. Ralph Gilles, head of design at Chrysler (and president & CEO of Dodge) believes that frequent styling changes may be the key to sales growth.

Going forward, Gilles expects Chrysler to have even more frequent design tweaks and updates, emphasizing more substantial mid-cycle product redesigns. Citing recent experience with cars like the 2011 Chrysler 200, Automotive News quotes Gilles as saying, “In some cases they acted like brand-new cars with a fraction of the investment.”

The Chrysler 200 had previously been called the Chrysler Sebring, a name consumers associated more with rental cars than with desirable mid-size sedans and convertibles. Thanks to an exterior freshening, suspension improvements, a new interior and a Super Bowl ad campaign featuring Eminem, Chrysler has seen sales performance from the 200 in the first quarter rivaling that of a new car launch.

Citing his experience throughout the Chrysler and Dodge product lines, Gilles went on to say, “We learned a lot from what we did with 16 products. Many of those were heavy, heavy refreshes, and it actually has done miracles.” You can see evidence of this in other Chrysler Group products, such as the newly refined interior in the 2011 Dodge Journey, or the new exterior styling of the 2011 Chrysler 300 and the 2011 Dodge Charger.

(Automotive News)

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New Car Sales: Higher Gas Prices Didn’t Matter…Until Now

Mainstream news outlets were quick to credit the popularity of compacts in last week’s March sales reports to rising gas prices. I’m not so sure about that. Except in California and a couple of other states, gas prices didn’t begin to approach $4 per gallon until after the April 1 numbers were released.

Yes, Chevy made a lot of noise about selling 18,018 Cruzes last month, and more than 50,000 for the first quarter, most of them to retail customers. Note also that Ford sold 12,482 Explorers in March, of which 10,000 were the new model and none with the EcoBoost turbo four. The Explorer is only available with the 3.5-liter V-6 at launch.

What’s happening? It’s a combination of good old American planned obsolescence – the same attitude that has millions of Apple iPad 1 owners ready to toss them away for iPad 2s – and advertising.

The 2008-10 recession and the disappearance of the good old days of 16-million+ annual sales has weeded out all but the most serious new car buyers. This consumer is either a serial new car buyer, perhaps bouncing from three-year lease to three-year lease, or he/she just can’t stand to drive your five-year-old+ clunker anymore. Perhaps these buyers simply must have Sync or keyless go, but they’re probably not enthusiasts, otherwise they wouldn’t be buying Cruzes and Explorers. Any fuel efficiency improvement can be impressive.

They pay attention to advertising. As 2953 Analytics’ Jim Hall likes to point out, there’s so much competition for new car buyers that automakers need to step up advertising in order to stand out. How would you explain Nissan’s success last month with its aged Altima, which had a significant TV ad campaign last month (it must have, for me to notice) and beat the equally aged Toyota Camry and its diminishing reputation?

Ford marketing chief Jim Farley explained at the Chicago auto show that he launched the 2011 Explorer on social websites, six month ahead of time, because he thought it wouldn’t kill off sales of the old, body-on-frame Explorer. What he didn’t say is the old Explorer was dead, already, anyway; just 60k last year, down from nearly half a million in its heyday. It won’t take a major hit to beat the ’10 Explorer.

Even with $4 gas, economy is relative. Suburban families can get more or less the same space and utility as in the old, 13/19 mpg Explorer (4WD, V-6), but with fresh new styling and more toys inside, and 17/23 mpg (AWD, V-6).

The new Explorer buyers are mostly upper-middle income suburban families. As I postulated with my April 1 monthly sales blog, I think stagnant incomes had as much to do with the success of cars like the Chevy Cruze as fuel prices. If your income hasn’t significantly risen, you won’t be ready for midsize cars that cost more than $20,000, so a near-midsize car with a $19,000 average transaction price seems a pretty good deal.

If gas prices keep rising, the May 1 report will be much different. A few more post-mortem observations from last month’s numbers:

Bring out your dead.

Counterpoint to the success of the Explorer is the failure of the Flex. Ford sold just 2,468 in March, and year-to-date sales totals 6,823, off 21.8 percent from the first quarter of ’10. Most months, Chevy Traverse outsold Ford Flex by more than 2:1. Last month, Ford turned the tables with the new Explorer, beating the Traverse by roughly 2,000 units (counting only the ’11 model Fords). I wouldn’t be surprised to see the Flex fade away by the end of the year.

About that Explorer …

Yes, Ford sold more than 10,000 of the new model, the one we placed last in our family crossover comparison. Probably none of those buyers saw our report before heading to dealerships, though that’s not to say sales will drop off this month. After all, we really like the new Mustang, and it’s still struggling to catch Camaro sales.

Fusion is a powerhouse.

I’ve repeated many times how Alan Mulally mistook the Five Hundred as the Taurus replacement. Last month, with 27,566 sold, the Fusion proved itself a midsize sedan capable of taking on the Toyota Camry, Honda Accord and Nissan Altima. Three months into ’11, Toyota has sold 76,821 Camrys, Honda 71,544 Accords (including 5,349 Crosstours), Nissan 69,551 Altimas, and Ford 65,023 Fusions. By now, Mulally must be convinced that the Taurus never will be the sales powerhouse it was, with 5,954 sold in March, off 15 percent. The new, similar-sized Dodge Charger posted 8,986 sales, up 44 percent.

Whither Lincoln?

I didn’t get into Lincoln sales in my April 1 blog. Last month, they were down 2.2 percent, to 8,501. But Lincoln dealers had no Mercurys, which posted 10,486 units in March ’10, and 0 last month. Lincoln sold 1,060 MKSes, off 26.5 percent. Compare that with the Cadillac CTS, which was up 36 percent to 3,904.

Toyota will rise again, but…

A new Camry is due to launch late this year as a 2012 model. Sales will rise, though I think Toyota’s recent quality and public relations gaffes will have an effect, that the new car won’t be an automatic buy for brand loyalists. In the old days, Toyota could manage to keep volume on an outgoing model high, then ramp down production just in time for the new model arrive, thus avoiding heavy discounting. The Japanese parts shortage is a separate issue, but it looks like this giant is showing some weakness in handling the market and its model transitions.

And Honda?

Civic had a strong month as Honda prepares to replace it. Whether c-cars reach c/d-segment sales or not, this is the most compelling segment of the year. The new Hyundai Elantra, Ford Focus and Chevy Cruze will be chipping away Civic’s sales, and I’ll keep a close eye on their numbers. The ’12 Focus’ numbers ought to ramp up to normal levels by late summer. Meanwhile, a steady 30k or so will continue to automatically buy Toyota Corollas.

Let’s not forget compact crossovers.

The old Ford Escape easily beat the newish Chevy Equinox. Ford sold a whopping 23,975, up 25 percent, while Chevy sold 14,949 Equinoxes, up 16.7 percent. Ford did a lot of advertising, and it’s closer if you add in GMC Terrain sales, which were up 29 percent, to 6,301. This standard size for European crossovers is becoming more important in the U.S., and the Ford beat the Honda CR-V’s 21,998, up 42.7 percent. Toyota sold 16,082 RAV4s, off 39.9 percent.

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March Sales: Gas Prices Push Compacts, Ford Beats GM

No April Fools here. It’s a good-news day for the economy. Unemployment fell to 8.8 percent, with 216,000 jobs added in March, the Bureau of Labor Statistics says, the lowest level in two years. Manufacturing contributed 17,000 jobs, many of them in the auto industry. Professional and business services added 78,000, although 37 percent of those were temp help jobs.

Manufacturing expanded by its fastest pace in nearly seven years, with help from both U.S. and overseas demand. Here in Michigan, the employment growth rate is running third highest in the nation, though unemployment remains in the double digits. Anecdotally, the Detroit Three are trying to lure computer geeks away from Silicon Valley. They may not be able to handle the weather, but they’ll like the housing prices. And Chrysler LLC is running out of room in its Auburn Hills tech center. So many of the new jobs in the Detroit Metro area are white collar, presumably with healthy salaries.

The automakers estimate March auto sales at 1.2 million units, up about 13.2 percent over March ‘10, counting medium and heavy-duty trucks. The seasonally adjusted average rate (SAAR) is running in the low 13-millions.

Still, statistics show little growth in average hourly rates, further widening this country’s long widening income gap. Sure, blame $3.65 per gallon gas, but perhaps slow income growth also is responsible for American consumers shifting to smaller cars. GM is trumpeting the fact that it sold 50,205 Chevy Cruzes in the first quarter of the year, compared with 48,725 Malibus and 49,541 Impalas. The Malibu and Impala have been trading places as Chevrolet’s number-one sedan in past months, and the Cruze passed them overall for the quarter by being second every month. Of 18,018 Cruzes sold in March, 15,541 were retail and 2,477 were fleet. Of 18,063 ancient Impalas, just 4,572 were retail and 13,491 were fleet.

Ford Motor outsold GM in March, as GM eased up on the incentives that gave it a strong January and February. GM says its March incentives were about the same as Ford and Chrysler’s, but above the industry average, in order to maintain, and gain market share.

B- and c-segment car retail market share for the industry increased from 19 percent in December 2010 to 21 percent in January/February, and to 25 percent in March, says Ford sales analyst George Pipas. Sport/utilities were off 4 points, to 29 percent retail market share, from December to March and full-size pickups were off 3 points, to 10 percent of retail share. Keep in mind these were numbers for the U.S. industry, not just Ford. However, Ford reported big numbers for its pickups and vans, including the Transit Connect, because it sold a lot of trucks to commercial fleets last month.

As evidence of oil price sensitivity, EcoBoost and 3.7-liter V-6 take rates on the F-150 are strong among retail buyers. B- and c-cars, or subcompacts and compacts, leveled off in the last three weeks of March as gas prices leveled (not unlike the spring 2008 scenario).

Pipas said he’s continuing to monitor whether fairly steady gas prices, or reduced small car inventory contributed most to this late-month flattening. Already, Fiesta inventory has dropped from a 60-day supply in late March to 40 days.

I’m concentrating on the Chevy Cruze, because it was the first new compact out after GM and Ford first said consumers were downsizing. They believe the compact segment will eventually pass the midsize segment, permanently, in the U.S. Chevy says its $19,000 Cruze average transaction price is $2,000 more than the soon-replaced Honda Civic and $3,000 more than the Toyota Corolla. Still, compare the Cruze’s ATP with GM’s average for cars, $25,900, reported for the second quarter of 2010.

GM has long claimed it can make money on small cars like the Chevy Cruze, but there’s a much bigger problem coming from the East. The Japanese earthquake and tsunami has affected the country’s domestic market and auto production. It has affected parts production, and power disruptions will affect production across the country for the next several months, at least. Publicly, GM, Ford, Chrysler and their foreign competitors are spinning the looming parts shortage. They’re “continually monitoring the situation” don’t have any shortage of models, yet. That will change later in the year if they don’t find alternate part supplies by mid-May. Second quarter profits across the industry could be in for a big, big hit.

And so, to the numbers …

1. Ford Motor Company: 212,777, up 19 percent.
First quarter: 496,720, up 15.9 percent.

Ford brand sales rose 28.2 percent, to 204,276.F-Series rose 25.3 percent, to 53,272.Twenty-two percent of ‘11 F-150 retail buyers bought the EcoBoost engine and 15 percent bought the 3.7 V-6. Ford’s retail order bank has a 40-percent take rate for the EcoBoost V-6.Fusion sales set a monthly record, at 27,566, up 21 percent. For the quarter, Ford has sold 65,023 Fusions, up 26.5 percent.Fiesta sales neared the 10k level, at 9,787.Escape was up 25 percent, to 23,975.Focus fell 11.9 percent, to 17,178 as the old model sold down. Only a handful of new ’12 Foci are in those numbers.Explorer was up 111.3 percent, to 12,482, and 10,828 of them were the new, unibody, transverse-engine ‘12 model.Explorer looks ready to take over for Flex, which has not been able to catch Chevy Traverse sales. Flex was down 28.8 percent, to 2,468.Lincoln dropped 2.2 percent, to 8,501 last month. Will it follow Mercury into the brand graveyard? Mercury sold 10,486 units in March ’10, and of course, zero last month.

2. GM: 206,621 up 9.6 percent.
First quarter: 592,545, up 24.1 percent

Chevy Silverado’s number was 32,555. Add 1,655 Avalanches (yes, Chevy still builds them) and 11,622 GMC Sierras to total 45,832 big trucks.Chevy Colorado was up 25.2 percent, to 2,561 and GMC Canyon was up 24.4 percent, to 765. Obviously, the temporary parts-shortage plant shutdown won’t affect these trucks.Chevy Camaro again beat Ford Mustang, though the gap is really thin. Camaro was up 0.7 percent, to 8,964 and Mustang was up 46.8 percent, to 8,557. Dodge sold 3,989 Challengers, up 24 percent.Impala was GM’s bestselling car, at 18,063 (+15.8 percent), mostly with fleet sales. Cruze was next, at 18,018 and Malibu was off 12.4 percent, to 15,551.Chevy Equinox was up 16.7 percent, to 14,949 and GMC Terrain was up 29 percent, to 6,301.Chevy Traverse was off 4.7 percent, to 8,230. GMC Acadia was off 5.9 percent, to 6,418. Buick Enclave was up 8.4 percent, to 4,899.Buick division was up 20.9 percent, to 15,663. Cadillac was up 4.5 percent, to 12,164.Chevy delivered 608 Volts, Rush.

3. Toyota-Scion-Lexus: 176,222, off 9.2 percent.
First quarter: 433,924, up 11 percent.

Toyota announced mid-year price increases that will affect cars and trucks at dealerships by May. The company says unfavorable exchange rates are responsible, and that the decision was made prior to the earthquake.Toyota reports no shortage of any models as a result of the earthquake. Like everyone else, Toyota is “monitoring” parts and production availability, and Prius and Lexus stand to be most affected.Lexus sales chief Mark Templin says the brand’s “pipeline is full” with Japanese-built models on the way.Corolla sales of 30,234, off 1.7 percent, nearly caught Camry sales, off 16.4 percent, to 31,464.Prius was up 52 percent to 18,605.Toyota has 12,250 Prii in U.S. inventory. It has an 18-day supply, versus 32 days at the beginning of March.Prius V’s August launch date in the U.S. has not been affected, so far.Tundra nosedived 32.9 percent, to 7,515. Tacoma was up 3.5 percent, to 10,144.Lexus division was off 1.5 percent, to 20,682.Lexus delivered 8 LFAs.

4. American Honda (includes Acura): 133,650 up 18.9 percent.
First quarter: 307,978, up 18.5 percent.

Accord beat Camry, with 33,616 sold, up 11.2 percent. Crosstour was off 22.5 percent at 2,083, despite a new ad campaign.Civic beat Corolla, up 33.8 percent to 31,213 as Honda tried to make room for the new model.Insight was up 62.2 percent, to 2,782.Honda sold 1,685 CR-Zs.Acura division was up 3.6 percent, to 12,611.TSX was off 11.9 percent, to 2,810, with 388 of those wagons.

5. Chrysler LLC: 121,730 up 31 percent.
First quarter: 286,950, up 23 percent.

Dodge brand was up 49 percent, to 44,102 and Jeep was up 36 percent, to 33,155.Chrysler sold 6,750 200s, versus 3,783 Sebrings last year (and 975 leftover Sebrings this March).Jeep Patriot was up 109 percent, to 5,602 and Compass was up 108 percent, to 3,703.The new Dodge Charger posted 8,986, up 44 percent, while Avenger was up 92 percent, to 5,954.Ram pickup was up 23 percent, to 21,898. Dakota was up 45 percent, to 1,612.Is this a joke? Fiat sold 500 500s.

6. Nissan North America (with Infiniti): 121,141, up 26.9 percent.
First quarter: 285,358, up 25 percent.

Nissan says this is a U.S. sales record for any month in its history. Despite that, it fell 589 units short of Chrysler.Altima outsold Camry at 32,289, up 31 percent.Sentra was up 104.7 percent, to 17,851 and Versa was off 19.8 percent, to 11,075.Titan was off 21.8 percent, to 1,920, and Frontier was up 12.7 percent, to 4,609.Murano was up 3.5 percent, to 5,682. Nissan sold 4,089 Jukes.Infiniti was up 13.5 percent, to 11,287.

7. Hyundai: 61,873, up 32 percent.
First quarter: 142,620, up 27.9 percent.

Add Kia sales for a total of 106,052, still seventh.Sold 22,894 Sonatas, up 20.9 percent.Good month for the new Elantra at 19,255, up 134 percent.Hyundai says 28 percent of its March sales units are rated 40 mpg highway, or higher.

8. Kia: 44,179, up 44.7 percent.
First quarter: 104,774, up 36.6 percent.

Bestseller Sorento was up 1,866 units, to 11,071.Soul nearly doubled, to 10,028.Optima was up 89.7 percent, to 6,891.

9. Mazda: 30,905, up 33.3 percent.
First quarter: 64,559, up 15.4 percent.

Passed Subaru, VW, BMW Group and Daimler since last calendar year’s numbers, with all models posting increases except the lame-duck Tribute (they still make -that?).The 5 minivan was up 139.4 percent, to 3,866.The 6 was up 15.3 percent, to 4,135.3 is the bestseller, at 12,467, up 9.8 percent.CX-9 was up 22.5 percent, to 3,635.CX-7 was up 30.7 percent, to 3,407.Spring is here: Miata was up 7 percent, to 645.

10. Volkswagen of America: 27,176, up 22.7 percent.
First quarter: 67,039, up 15.0 percent.

Best sales month in seven years, enough to move it ahead of Subaru and BMW Group.Add in Audi for a total of 36,944.Jetta was up 84.5 percent, to 16,969. Maybe there’s something to selling on price after all.CC was up 16.9 percent, to 2,331.Tiguan was up 12.5 percent, to 1,970.Golf was up 5.8 percent, to 3,106.

11. Subaru: 26,916, up 13.2 percent.
First quarter: 67,457, up 17.3 percent.

Slid behind Mazda and VW, but passed BMW Group.Outback was up 37.8 percent, to 10,498.Forester fell 9.9 percent, to 7,629.Legacy was up 27.6 percent, to 4,450.

12. BMW Group: 26,382, up 21.7 percent.
First quarter: 64,958, up 18 percent.

The new X3 posted 2,648 units, up 270 percent.5 Series was up 55.6 percent, to 4,491.Mini brand had its second-best sales month, ever in the U.S., at 6,087, up 68.6 percent. Its best month came the last time oil prices were rising; 6,312 units in May 2008.

13. Daimler AG: 22,971, up 11 percent.
First quarter: 57,262, up 10.2 percent.

Mercedes-Benz sold 21,484, up 9.4 percent.Smart sold 1,062, up 175.1 percent and Sprinter sold 425, off 37.2 percent.C-Class was up 8.9 percent, to 6,542.E-Class was up 21.1 percent, to 6,107.

14. Audi: 9,818, up 14.3 percent.
First quarter: 25,383, up 19.1 percent.

A4 was the bestseller, up 12.1 percent, to 3,428.R8 was the biggest gainer, up 103.8 percent, to 106.Q5 was up 22.5 percent, to 2,083.

15. Mitsubishi: 7,560, up 39 percent.
First quarter: 20,167, up 48 percent.

Outlander Sport was up 8.6 percent, to 1,401.

16. Volvo: 6,369, up 21.6 percent.

First-quarter sales are up 10.2 percent.Sold 1,952 S60s.

17. Jaguar/Land Rover: 4,315 up 16 percent.
Up 18 percent for the first quarter

Land Rover was up 26 percent, to 3,441.Jaguar was off 11 percent, to 874.

18. Porsche: 2,588, up 36 percent.
First quarter: 7,007, up 34 percent.

Cayenne sold 1,049, up from 397 in March ’10.Panamera sold 654, up from 542.911 was off, to 609 from 615. Boxster/Cayman fell to 276 from 351.

19. American Suzuki: 2,497, up 11 percent.
First quarter: 6,702, up 18 percent.

SX4 is the bestseller, off 14 percent to 1,070.Kizashi was up 77 percent, to 703.

Saab Cars North America: N/A

Compacts in March:

1.)   Honda Civic: 31,213

2.)   Toyota Corolla: 30,234

3.)   Hyundai Elantra: 19,255

4.)   Chevy Cruze: 18,018

5.)   Nissan Sentra: 17,851

Midsize cars in March:

1.)   Honda Accord: 33,616

2.)   Nissan Altima: 32,289

3.)   Toyota Camry: 31,464

4.)   Ford Fusion: 27,566

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