April 2004 U.S. Car Sales - Notes and Quotes

DETROIT May 3, 2004; John Porretto writing for the AP reported that Americans' appetites for gas-slurping pickups and sport utility vehicles boosted business for several automakers last month, even as high fuel prices helped contribute to record sales for gas-electric hybrid cars.

Ford Motor Co.'s overall sales for April were below expectations, the company said Monday, while DaimlerChrysler AG's Chrysler Group performed slightly better than expected. A computer glitch forced General Motors Corp., the world's largest automaker, to postpone its April sales report until Tuesday.

Among foreign automakers, Toyota Motor Corp. reported its eighth consecutive best-ever April, helped in part by strong demand for its gas-electric hybrid Prius sedan. Toyota's U.S. sales were up 10 percent for the month.

Honda Motor Co., the only other automaker currently selling a hybrid vehicle on the U.S. retail market, said its Civic hybrid posted a second consecutive month of record sales. So far this year, Honda has sold 9,023 Civic hybrids, 11 percent more than at this point last year.

Nissan Motor Co.'s U.S. arm also had another positive month, up 14 percent behind solid sales of its new Titan full-size pickup and Armada full-size SUV.

"The industry is benefiting from a healthy first-quarter economy," said Jim Press, chief operating officer of Toyota's U.S. division. "Despite rising fuel prices, economic indicators such as gross domestic product, employment and consumer spending were all up, giving a boost to April automotive sales."

Industrywide, analysts predicted sales of new cars and trucks would be up 3 percent to 5 percent in April, helped in part by ongoing incentives and consumers spending tax refunds.

However, the final industry tally for April will not be available until Tuesday. GM postponed its report by a day after what it called a "major failure" Friday with its vehicle delivery reporting system.

GM sales were expected to rise in April, in line with projected gains for the overall industry.

Ford's U.S. vehicle sales were off an unexpectedly sharp 4.6 percent in April from a year ago as an aging car lineup continued to hamper business. The nation's second-largest automaker said passenger car sales declined 8.8 percent last month from April 2003, while truck sales dropped 2.4 percent. Most analysts predicted sales of Ford, Lincoln and Mercury brands to be flat to down slightly.

Ford sales analyst George Pipas summed up the company's U.S. business last month using a golf analogy: "We bogeyed April."

Still, Pipas said Ford's second-quarter production schedule and full-year sales outlook were unchanged. Ford is coming off a first quarter in which its worldwide automotive business helped it post a profit of $1.95 billion, more than double its earnings of a year ago and topping larger rival GM.

Analysts have said Ford's car sales likely will remain well off from a year ago until later this year, when new vehicles such as the Five-Hundred sedan and next-generation Mustang reach showrooms.

The Chrysler Group saw sales rise 1 percent last month -- slightly better than some forecasts. Light truck sales, which include pickups, minivans and SUVS, rose 3 percent, offsetting a 5 percent decline on the car side.

Gary Dilts, the Chrysler Group's senior vice president for sales, said he was encouraged about the timing of the company's beefed-up portfolio, which includes nine new or redesigned cars and trucks this year. The latest is the Chrysler 300 sedan.

"Inflation remains at a historic low, the unemployment situation continues to improve and consumer's ability to buy remains positive," Dilts said.

Hyundai Motor America, which was cited last week for significantly improved vehicle quality in a closely watched industry report, posted best-ever April sales, as did Porsche Cars North America.

Hyundai volume rose less than 1 percent from a strong April a year ago, while Porsche was up 15 percent.

The BMW Group, which includes the BMW and Mini brands, posted a sales increase of nearly 11 percent, its strongest retail month on record.