Auto sales mixed, but 2008 predictions are down

DETROIT -- Automakers reported Monday mixed U.S. sales results for November, with some new or more fuel-efficient models performing well despite consumer malaise over high gas prices and the weak economy.

But even with rising sales of small cars and crossovers, the industry is predicting things will get worse in 2008. General Motors Corp. said Monday it is cutting scheduled first-quarter production by 11 percent, while Ford Motor Co. said it would cut scheduled production by 7 percent. Ford's top U.S. sales analyst, George Pipas, said the automaker is predicting sales will be at their slowest pace in a decade in the first half of 2008.

Shares of automakers fell. GM dropped $1.22, or 4 percent, to $28.61 in trading Monday, and Ford shares declined 26 cents, or 3.5 percent, to $7.25. Toyota shares fell $1.53, or 1.4 percent, to $110.92. Shares of Nissan declined 23 cents, or 1 percent, to $22.67, and Honda shares dropped 92 cents, or 2.7 percent, to $33.49.

GM, the biggest automaker by U.S. sales, said its November sales dropped 11 percent, hurt by falling demand for trucks as well as cuts in sales to low-profit rental car fleets, while Chrysler LLC said sales fell 2 percent. Ford and Toyota Motor Corp. both reported flat sales for the month. Honda Motor Co.'s sales were up 5 percent while Nissan Motor Co.'s sales rose 6 percent.

"Rising fuel prices and sliding home values delivered a one-two punch this month," Jim Lentz, executive vice president of Toyota's U.S. sales arm, said in a statement. "But the industry's not down for the count. Demand for fresh, more fuel-efficient products continues to show strength."

GM's November truck sales fell 15 percent, while car sales declined 4 percent. GM's sales were down 6 percent for the first 11 months of the year.

Mark LaNeve, GM's vice president of North American sales, service and marketing, said GM wasn't competitive enough on its incentive spending for 2008 model year pickup trucks.

Ford said its car sales fell 2 percent but truck sales rose 2 percent, largely on the strength of the Ford Escape small sport utility vehicle and Ford Edge crossover. Sales of the newly redesigned Ford Focus jumped 18 percent. Ford's sales dropped 12 percent for the first 11 months of the year.

Toyota continued its drive to overtake Ford this year as the No. 2 automaker by sales, outselling Ford by nearly 15,000 vehicles. Toyota's sales were flat for the month compared with last November. Toyota's sales increased 4 percent for the year.

Honda's car sales rocketed up nearly 20 percent on the strength of the new Accord sedan and the subcompact Fit, which saw sales double over last November. But the automaker's truck sales fell 11 percent. Honda's sales rose 3 percent for the first 11 months of the year.

Nissan said its sales rose largely on the strength of the new Rogue crossover and the Versa subcompact, which saw sales surge 67 percent. Nissan's car sales increased 11 percent, but truck sales were flat. Nissan's sales rose 6 percent for the January-November period.