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April's Automotive Sales Numbers: Not a Pretty Picture

Here's some non-news - car sales are in the toilet.

I know we're already a week into May, but I just got April's numbers from our data folks (my fault, not theirs) and it's not a pretty picture. Here's the basic rundown in all its badness:

April car sales were the worst since 1995, and 8% below March (usually sales pick up from March to April)

The Honda Accord was the best selling vehicle last month, better not only than Camry, but better than Ford F-150 and Chevy Silverado, too (the Silverado started the year in the #1 position, and the Chevy/Ford full-size trucks have outsold midsize sedans for years)

Toyota was top-selling brand in April (ahead of GM and Ford)

Compact car market share the highest ever -- 22.6%

Hybrid market share highest ever -- 3.2%

Large truck market share lowest ever -- 11.1% (was 19% three years ago)

Mini and Smart have the lowest days-to-turn (i.e. how long a car sits on the lot before selling): 10 and 12 days, respectively

Hummer has the highest days-to-turn: 117 (OUCH!)

And last but not least, the year-to-date car sales numbers are pretty painful:



        
  • GM down 12.6%
        
  • Ford down 10%
        
  • Chrysler down 18%
        
  • Toyota down 4.2%
        
  • Nissan down 2.3%
        
  • Honda UP 0.5%

So Honda is up, the rest of the automotive universe (in the U.S. market, at least) is down. And if you happen to be one of those car companies used to making all your profit from trucks and truck-based SUVs, well...

Posted by Karl May 9, 2008 6:00 am

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Categories: Automotive News | Domestic Manufacturers Problems/Challenges


Comments

syke - May 9, 2008 6:07 am (#1 Total: 17)  

 
United States of America  
If you want to see where the market is really going, don't just limit your sampling to automobiles and trucks.
 
At the Honda (motorcycle) dealership where I work, we've been moving 50-150cc scooters out the door like crazy. And I can understand why. I do a 44 mile round trip commute daily. Two days ago, I filled up my S-10 pickup: $51.00
 
As a comparison, total gas for the last three weeks on my 150cc scooter, plus one fill-up for my Harley Davidson: $38.75.
 
Even a Prius can't touch the 69mpg I've been averaging - and I'm running 45-52mph at all times.

hoops26 - May 9, 2008 6:40 am (#2 Total: 17)  

 
 
Why are you not including Camry hybrid sales?
 
Camry with hybrid outsold Accord with hybrid(only a few hybrids)
 
If you don't include hybrid sales the Accord did outsell Camry in April, but also did in March and probably has before that?

alpha01 - May 9, 2008 7:13 am (#3 Total: 17)  

 
Cincinnati OH Central NJ/New Brunswick Area NJ (originally)  
@ hooops26 - Karl may be looking at fleet vs. retail, and historically, I think the Accord's fleet rate is about 3-4% while the Camry's is around 12%, I believe.

bepperb - May 9, 2008 7:14 am (#4 Total: 17)  

 
 
So Honda bet their product mix on rising fuel prices, and Mopar on low fuel prices, and everyone else in between. Ouch. One thing that's really a shame, is that if these companies had some really fuel efficient vehilces (or a contingency plan to bring their european products over quickly) they would be cleaning up, that would get people into showrooms despite the credit/economy problems. If Daimler still owned Chrysler, and they could execute (which they absolutely could not) getting a fit-sized A-series derivative over here, they wouldn't be bleeding now.
 
Andy Grove wrote a great book about the idea that great business opportunities occur when fundamental changes occur. After remaining more or less stagnant for 20 years, things are happening now in the auto industry. And the companies who adapt fastest will be the ones who survive, and unfortunately some of ours aren't setup well for the situation, or for change.
 
Karl, what does this do to your blog from a few weeks ago, when you said you heard alot of &*%ching, and not a lot of changing. The changes you wanted to see, well perhaps we're seeing more than we wanted to.

editor_karl - May 9, 2008 9:00 am (#5 Total: 17)  

 
L.A. CA United States of America  
I still think plenty of people are buying small SUVs/CUVs who don't need them, so whatever change we're experiencing hasn't completely stopped the "I want to look cool more than I want to own only as much car as I really need."
 
Which, as I keep repeating, is fine. Being able to live beyond your basic needs is what makes America great, but it also confirms that fuel prices and economy woes haven't shut down the "more car than I need" gravy train -- yet.

blueguydotcom - May 9, 2008 9:28 am (#6 Total: 17)  

 
San Diego CA  
I can only assume this is helping my Mini's resale even more. :)
 
Now bring on the diesels - at least for Californians it makes fiscal sense.

jerrywimer - May 9, 2008 9:31 am (#7 Total: 17)  

 
United States of America, loud'n'proud!  
I'd argue that it never will Karl. People will always buy as much car as they believe they can afford (make that *most* people- I know there are a few exceptions). It's just that their choice may be smaller than it otherwise would have been under other circumstances. Once upon a time, horses were the norm, and cars were an extravagance. Folks didn't *need* a car, with the inconveniences of having to 'feed' it all the time, let alone find a 'food' source, among many possible shortcomings compared to the living transportation methods. But cars were showy, and had positives too, and those who could bought better cars to be more showy or to be able to say they *could* do more, even if they never actually used the extra abilities.
 
A really good example would be muscle cars in the late 60's and early 70's. *Nobody* needed (or needs now) a powerful car. Most day-to-day driving required very little power. Bragging rights are something else though..

tysalpha - May 9, 2008 9:38 am (#8 Total: 17)  

 
Saint Louis MO United States of America  
If people only bought cars based on need, there would be almost no new car sales! The only time you would buy one would be if your car was totaled, or if your child was of driving age. Otherwise, it's definitely cheaper to keep what you have than to buy something new.

SubyTrojan - May 9, 2008 9:47 am (#9 Total: 17)  

 
Santa Monica, CA, USA  
Subaru (of America) sales were up 12% in April 2008--led by sales of the new 2009 Forester being up 49% over April 2007 sales. :o) Then again, 2007 was pretty crummy for them compared to 2006.
 
PR Newswire - SOA April 2008 Sales (HTML used due to link length)
 
Subaru Canada and Subaru Australia also had record Aprils, too.
 
http://forums.nasioc.com/forums/showthread.php?t=1507342

delawaredude - May 9, 2008 9:59 am (#10 Total: 17)  

 
 
Due to the weak sales, there are good deals available at car dealers. However, if you plan to keep it for more than 2-3 years, you could be taking a big risk on your future fuel costs. People aren't buying because they are waiting to see if gas prices stabilize or continue going up. They're also waiting for better options, like hybrids, diesels, electric cars, etc.
 
Yeah, bepperb! I want a Mercedes-Benz A-class. Canada gets the B-class. Car manufacturers, it's pretty clear. More people than in the past want choices with higher mpg.

estreka - May 9, 2008 12:04 pm (#11 Total: 17)  

 
subarctic north - Great Falls, MT  
I get quite a laugh out of that graph. I love how sales decline thoughout the year, even as time goes backward, particularly around April & October/November.
 
Even though sales were up for Honda, a meagre .5% is pathetic. That tells me the auto industry is more severely impacted by the economy than by gas prices.

crowb - May 9, 2008 12:40 pm (#12 Total: 17)  

 
 
That graph is really just a result of Karl tracing editor Scott Oldham's profile. Its sort of canted at an angle, but the sloping brow up in the top left corner is a dead giveaway...
 
j/k : )

george2040 - May 9, 2008 3:44 pm (#13 Total: 17)  

 
 
"I still think plenty of people are buying small SUVs/CUVs who don't need them, so whatever change we're experiencing hasn't completely stopped the "I want to look cool more than I want to own only as much car as I really need.""
 
Karl, I don't think looking cool has much to do with SUV/CUV sales in 2008. My theory is many drivers like the elevated driving position of SUVs/CUVs and the ability to see farther ahead in heavy traffic. It's very frustrating to be stuck in stop-and-go traffic and not be able to see why your lane stopped. Maybe cars should have forward looking roof mounted video cameras instead of the current elevation arms race.

carlisimo - May 9, 2008 4:24 pm (#14 Total: 17)  

 
United States of America  
I bought my parents an older CR-V and I'd say that size works perfectly for a family of five, or for four friends. It's great on long trips, camping, Home Depot runs... I can see why the segment would be popular (though I wouldn't necessarily recommend a pre-'07 CR-V over its competitors).
 
A wagon would be better in a few ways, and better looking, but I've given up on their return, and have little right to complain if I keep buying used. Besides, cars are getting almost as tall as CUVs. I miss the days when cars looked wider than they are tall.

blueguydotcom - May 9, 2008 7:43 pm (#15 Total: 17)  

 
San Diego CA  
Karl, I don't think looking cool has much to do with SUV/CUV sales in 2008. My theory is many drivers like the elevated driving position of SUVs/CUVs and the ability to see farther ahead in heavy traffic. It's very frustrating to be stuck in stop-and-go traffic and not be able to see why your lane stopped. Maybe cars should have forward looking roof mounted video cameras instead of the current elevation arms race.
 
  I have a Cooper S and never have a problem seeing what's happening ahead. If you can't see what's happening far ahead of you, then you're focusing on the wrong cars. Don't focus on the cars in front of you - what's happening far ahead makes the most difference. The guy in front of you isn't an issue as your vision will pick that up regardless.

ewilfong - May 10, 2008 8:55 am (#16 Total: 17)  

 
 
Excellent point, blueguy. I wish this basic rule of safety were taught to everyone. In theory, you shouldn't ever be surprised when the car in front of you brakes because you'll always be aware of what's impeding his progress.
 
George does bring up an interesting point about wanting to see better. I was floored when I moved to Texas in 1998 and saw just how many huge trucks surrounded me everywhere I went. Backing out of a parking space became a chore because my line of sight was inevitably blocked by mammoth pickups on all sides. That annoyance alone, however, was not enough to make me run out and buy an SUV.

1487 - May 11, 2008 4:59 pm (#17 Total: 17)  

 
Philadelphia PA United States of America  
GM is not a brand. I assume he meant to say Toyota outsold Chevy as a brand. GM outsold Toyota as a manufacturer in April just as it does every month. Toyota has beat Ford in sales many months recently, this isnt new.




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