U.S. auto sales still sluggish

DETROIT -- Toyota, Ford and Chrysler each reported sales declines last month, but General Motors surprised industry analysts Tuesday with an increase in a declining U.S. auto market. Nissan and Honda also reported higher sales.

Toyota's 2.8 percent sales drop, Ford's 14.4 percent decline and Chrysler's 6.1 percent decrease were symptoms of what analysts said would be a slumping U.S. auto market due to high gasoline prices, rising mortgage payments and turmoil in the financial markets.

GM, led by increased pickup truck sales, showed an increase of 6.1 percent, while Nissan Motor Co. reported its sales increased 6.3 percent for August and Honda Motor Co. reported a 4.7 percent increase.

Ford Motor Co. has blamed declining sales through the year on efforts to wean itself off of low-profit sales to rental car companies and other fleet buyers. It also said it had heavy incentives that boosted sales last August.

Paul Ballew, GM's executive director of global market and industry analysis, said despite his company's increase, all automakers are being hit by economic uncertainty. High gasoline prices and declining home values have caused people to delay auto purchases or exit the market altogether, he said.

"The industry is certainly feeling the effect of macroeconomic events," he said.

Toyota Motor Corp., with 233,471 vehicles sold in August, beat Ford's 217,436 for the month. The Japanese automaker sold 1.788 million vehicles during the first eight months of the year, edging Ford, which sold 1.784 million. Many analysts have predicted Toyota will overtake Ford for the No. 2 slot for 2007. The Associated Press does not include heavy trucks in Ford's sales figures.

Ford, which is in the middle of a restructuring plan that will close 16 factories by 2012 and usher thousands of hourly workers out the door with early retirement or buyout plans, saw its sales decline slightly more than 12 percent for the first eight months of the year.

Overall, GM sold 385,529 light vehicles in August, compared with 363,521 in the same month last year. GM's car sales dropped 7.8 percent, but its truck sales soared 16.6 percent for the month due in part to increased incentives on new pickup truck models.

Toyota's car sales were down 6 percent, but its trucks were up 2 percent compared with August of last year. Its figures include the Lexus and Infiniti brands.

Nissan truck sales, led by the full-sized Titan pickup, rose 7.9 percent compared with August of last year, while its car sales were up 4.1 percent, the company reported. Its figures include the Nissan and Infiniti brands. Nissan sold 95,527 vehicles in August, compared with 89,848 in the same month last year.

Chrysler sold 168,203 vehicles in August, compared with 179,165 during the same month in 2006.

Honda said it sold 158,342 Honda and Acura models, with car sales up 11.7 percent and truck sales down 3.6 percent.