Ford overtakes GM in US sales as Toyota falters amid recalls
AP News ( 2010-03-02 14:59:08 )
Ford Motor Co. overtook rival General Motors in US sales Tuesday as Toyota faltered amid a series of mass recalls and a congressional investigation into its safety standards.
Toyota reported an 8.7 percent drop in February US sales to 100,027 vehicles, while the overall industry was expected to perform significantly better than depressed year-ago levels.
News of the drop in Toyota sales came as the Japanese auto giant's top executives faced a third grilling by US lawmakers as the number of US deaths blamed on defects in its vehicles rose to more than 50.
Critics have attacked Toyota for its sluggish response to complaints and accused it of covering up defects and incorrectly blaming accidents on floor mats or sticky pedals while ignoring possible electronic problems.
Toyota -- which has recalled more than eight million vehicles worldwide -- has said it will overhaul its quality-control measures and insists it has found a solution to the problems.
Ford appeared to have capitalized on Toyota's woes as its February US sales jumped 43 percent to 142,285 vehicles, placing the number-two US automaker squarely ahead of GM's 141,951 vehicles.
It was the first time Ford had surpassed GM in monthly sales since the top US automaker's sales were hit by a strike at a key supplier in 1998.
Ford also trounced Toyota, which had overtaken Ford several years ago in annual US sales, and forecast its market share would jump three percentage points to about 17 percent amid higher demand for every brand and product category.
"The strength of our new products and Ford's leadership in quality, fuel efficiency, safety, smart design and value are resonating with customers," said Ken Czubay, Ford vice president for US marketing, sales and service.
"The good news is we have even more new products and fuel-efficient powertrains coming this year, and we expect our progress to continue."
GM, which posted an 11.5 percent gain from a year earlier, expressed satisfaction with its performance.
"We got what we thought was our fair share of Toyota sales," said Mike DiGiovanni, GM's executive director for global market and industry analysis.
But while GM welcomed the opportunity to introduce its products to new customers, the automaker attributed the bulk of its gains to the success of its restructuring plan and a solid lineup at its four remaining "core" brands.
Sales at Chevrolet, Buick, GMC and Cadillac rose 32.2 percent in February to 138,849 while total sales rose to 141,951 vehicles in February from 127,296 a year earlier.
"Although we've been operating as a new company with four brands for just seven months, our February results demonstrate that our long-term plan is already paying dividends," said Susan Docherty, GM vice president for sales, service and marketing.
"For the fifth month in a row, Chevrolet, Buick, GMC and Cadillac reported a year-over-year increase in retail sales with a combined retail sales up seven percent" in February, she said in a conference call.
The results came hours after GM announced it will recall 1.3 million cars in North America over a potentially faulty power steering motor following a federal probe into the problem in January.
Chrysler's US sales rose by one vehicle to 84,449 units from the depressed levels of a year earlier but were nonetheless 48 percent higher than the dismal results it posted in January.
"Compared with January, Chrysler Group's February sales grew more than the industry average, reinforcing the company trend of steady, month-over-month growth," said Fred Diaz, Chrysler's top sales executive.

Copyright 2010  AFP Global Edition