By Joe Benton
ConsumerAffairs.com
August 1, 2008 Spanish
U.S. automakers reported enormous sales declines in July that were much worse than expected.
High gasoline prices and a slowing economy pounded the U.S. auto industry as consumers demanded small fuel efficient cars and trucks from an industry that for years has depended on trucks and SUVs for profits.
GM car and light truck sales fell a whopping 26 percent. Sales of light trucks and SUVs at GM dropped 35 percent.
Ford sales were off almost 15 percent with truck and SUV sales down 26 percent as well.
GM earlier reported a $15.5 billion quarterly loss, in large part because of plummeting sales and prices for SUVs.
Faced with a sharp decline in the resale value of used cars and trucks, GM, Ford and Chrysler have all pulled back on auto leases and tightened consumer credit terms.
Chrysler has completely abandoned leases.
Even Japanese auto giant Toyota reported a sales downturn. Toyota sales dropped 12 percent.
Toyota saw a 24 percent decline in SUV sales and a 32 percent drop in pickup sales. Sales of Toyota cars were largely flat.
Sales of the Prius, the best selling hybrid in the U.S., fell 8 percent because of supply problems at Toyota.
Honda reported a sales decline as well, down just 1.6 percent.
The only large automaker to report a sales increase was Nissan. Sales were up 8 percent.
Volkswagen's best-selling vehicle, the Jetta, sold well in the face of high gas prices. Sales rose 14.7 percent in July. Sales of the Touareg SUV were down more than 30 percent.
Daimler AG's Mercedes-Benz sales rose 11.6 percent in July.
Daimler's other U.S. unit, Smart USA, sold 2,559 of its tiny Smart ForTwo vehicle. The vehicle, which went on the market in the U.S. earlier this year, has sold 13,958 units so far.
Porsche sales were down 3 percent to 3,230 because of a drop in Cayenne SUV sales. Porsche car sales were up slightly in July.
