Ford sales outstrip GM, tap into Toyota market
DETROIT — Ford posted a 43 percent jump in February U.S. auto sales and outsold General Motors for the first time in nearly a dozen years as it grabbed sales from struggling Toyota.
Major automakers reported last month’s sales figures Tuesday.
Ford Motor Co.’s sales surged thanks to strong demand for its cars and because it was able to grab some customers from Toyota Motor Corp., whose sales fell 9 percent due to a massive safety recall.
Ford sold 334 more cars than GM in the U.S. for the first time since August 1998, when GM was in the midst of a strike.
Besides Ford, other winners included GM, Kia Motors Corp., Honda Motor Co. and Nissan Motor Co. Even struggling Chrysler saw improvement.
February was the first full month since Toyota’s Jan. 26 decision to halt sales of eight popular models in the U.S. because of safety concerns. Those cars went on sale again as dealers repaired them, but Toyota’s image suffered from the recall of millions of vehicles and congressional hearings on its safety record.
Analysts had expected Toyota to see a double-digit drop in sales for the month. The Japanese automaker jacked up incentive spending to lure buyers.
General Motors Co. reported an 11.5 percent increase, helped by new models and Toyota’s woes. Chevrolet car sales to individuals rose 10 percent in February.
Most carmakers offered deals to Toyota customers for trading in their vehicles. According to Edmunds, incentive spending rose 11 percent from January to $2,588 per vehicle. Toyota’s incentive spending rose 26 percent, to $1,833 per vehicle.
The industry was expecting to see gains over February 2009, which was one of the weakest months in a very depressed year. Sales over Presidents Day weekend — which traditionally kicks off the spring selling season — were robust, according to the auto information site Edmunds.com. Continued...
Still, winter storms at the beginning and end of the month hurt sales on the East Coast and in the Midwest. And consumer confidence took an unexpected dive in February, indicating people are nervous about the economy.
Ford had expected sales to climb from February 2009, when U.S. sales plummeted in the midst of the recession. Its car sales climbed 54 percent as consumers continued to shop for more fuel-efficient vehicles.
Like GM, Ford saw renewed demand from corporate fleet customers, which are buying again after weak sales in 2009. Ford’s fleet sales surged 74 percent over February of last year, while GM’s jumped 114 percent.
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