DETROIT - U.S. vehicle sales declined a modest 3 percent last month compared with a very strong February a year ago, and automakers and financial analysts say it's further proof the economy is rebounding.
``The recession is fading and consumers and car buyers are rising to the occasion,'' said David Healy, an analyst with Burnham Securities.
Much of the decline, especially among U.S. automakers, was blamed on lower fleet sales as rental car companies continue to thin their inventories because of the post-Sept. 11 travel slump.
General Motors Corp. reported a 0.4 percent sales increase compared with February 2001, but excluding fleet sales its retail business rose 8 percent, according to Paul Ballew, the automaker's top sales analyst.
The world's largest automaker reported its light truck sales increased 22.3 percent over the same month a year ago, while passenger car sales declined 19.7 percent.
Sales for GM's Saab unit increased 14.9 percent over February 2001.
Acting on the upbeat news from GM, Standard & Poor's said Friday it was raising its rating of the automaker's stock from ``hold'' to ``accumulate.''
``With the economy strengthening and new products to arrive later this year, we expect results to get even better,'' said S&P senior automotive analyst Efraim Levy.
Ford Motor Co. also felt the pain of lower fleet sales, reporting a 13.5 percent drop in sales compared with February a year ago. The company's fleet sales declined 29 percent last month, while retail sales were about the same, said George Pipas, sales and marketing analyst for the automaker.
Ford's Jaguar and Land Rover units reported their sales more than doubled during February versus a year ago. The automaker's Volvo unit saw sales increase 2.4 percent over those during February 2001.
The Chrysler Group of DaimlerChrysler AG saw an 11 percent decline in sales of its cars and trucks compared with February 2001.
Passenger car sales dropped 25 percent from a year ago, but much of that resulted from lower fleet sales, the automaker said. Chrysler Group truck sales were down 5.7 percent compared with February 2001.
An unspecified decline in fleet sales also had a negative effect on the automaker's February sales figures, said Gary Dilts, senior vice president of sales.
``I think as business and economy improve you're going to see the fleet and rental business come back,'' Dilts said during a teleconference with reporters and financial analysts.
GM and Ford launched the latest volleys in the ongoing incentive war Friday. GM resumed its zero percent interest finance offer after a two-month break, and Ford said it was extending its no-interest program. Both plans include the choice of zero- and low-interest loans or cash.
GM also is allowing current lessees whose leases expire between May 1 and Sept. 30 to trade in their vehicles early if they buy or lease another GM vehicle. The early trade-in allowance runs from March 1 to April 30.
Ford will offer ``loyalty bonuses'' of up to $1,500 on most 2002 Ford brand vehicles for returning lease customers.
Both GM and Ford said they need to maintain the programs to be competitive.
Chrysler plans to stick with its current mix of cash rebates and seven-year or 100,000 mile powertrain warrantees.
``That's about the right message and the right balance,'' said Dilts.
Toyota Motor Corp. saw its sales increase 1.7 percent compared with February 2001. American Honda Motor Co. reported a 4.6 percent decline.
Nissan North America reported an 8.2 percent increase in its sales last month compared with February 2001, powered by the best month ever for its Altima passenger car. The Altima, redesigned for 2002, was named North American Car of the Year in January.
Mitsubishi Motor Sales of America Inc. said its sales soared 30 percent last month over February 2001, marking its best February ever.
South Korean automaker Hyundai Motor America reported its 13th consecutive record month with a 15 percent increase in February sales over those of a year earlier.
BMW of North America LLC reported a record February with sales of its cars and trucks 14 percent higher than they were during the same period a year ago. The German automaker's year-to-date sales are 15 percent ahead of those during the same two-month period a year ago.
Saturday
January 11th, 2025
10:45AM
