Sales of Sport Utility Vehicles and Pickup Trucks Rebound, but Toyota Leads the Pack

Strategic Insights -

The North American automobile market witnessed a slight rebound in sales of sport utility vehicles and pickup trucks in September, with sales increasing 1.2 percent from the previous year. However, the Detroit automakers General Motors and DaimlerChrysler failed to capitalize on this growth, with their market share declining due to Toyota's remarkable surge of over 20 percent in sales. Falling gas prices and lower interest rates contributed to the increase in sales of light trucks, while passenger car sales experienced a decline of 5.5 percent.

Key Takeaways:

  • Sales of light trucks increased 1.2 percent from the previous year, while passenger car sales fell 5.5 percent.
  • General Motors and DaimlerChrysler lost market share, while Toyota's sales surged more than 20 percent.
  • Ford Motor managed to sell 21 percent more cars than the previous year, although a significant portion of those sales were to low-margin fleet customers.
  • Ford's new promotion, "Truck Month," includes no-interest financing on 2006 F-150, Super Duty, and Ranger pickups.
  • Chrysler Group saw a 60 percent increase in sales of minivans, one of its most important segments.
  • The automakers hope that gas prices near $2 a gallon will help sell trucks and S.U.V.'s, but analysts say gas prices would need to remain low for a sustained period for a major change in buying patterns to occur.

Statistics:

  • Sales of light trucks increased 1.2 percent from the previous year.
  • Passenger car sales fell 5.5 percent.
  • Toyota's sales surged more than 20 percent.
  • Ford Motor sold 21 percent more cars than the previous year.
  • Ford's new promotion offers no-interest financing on 2006 F-150, Super Duty, and Ranger pickups.