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| Are Americans ending their love affair with
gas-guzzling SUVs? |
US car firms General Motors (GM) and Ford have
been forced to cut production in the face
of
falling car sales.
US sales at GM sank 12.7% in February compared to a year ago while Ford
sales dropped 3% as foreign rivals took a bigger share of the market.
Meanwhile, Asian carmakers fared well - Toyota sales
jumped 11% while rival Nissan notched
up
a 10% increase.
Overall sales across the industry also fell to 1.25 million vehicles
from 1.27 million a year earlier.
GM and Ford blamed high fuel prices for low sales of big trucks and
gas-guzzling sports utility vehicles (SUVs) - the vehicles that provide
the biggest profits.
GM added that US truck sales fell 9% in February while car business
tumbled 17%, however it did acknowledge that some new products - such as
the Pontiac G6 and Chevrolet Cobalt - had put in solid performances.
"The calendar year is starting off slower than expected, both for GM
and the industry," said Mark LaNeve, GM's vice president for North
American sales, service and marketing.
The slump in sales prompted the group to cut
production in North America by 3% - it has already reduced output
by around 9% in the face of
growing stockpiles.
Meanwhile, Ford which posted its ninth consecutive drop in monthly US
sales, said it was cutting first-quarter North American production by
another 10,000 vehicles, or 1.2%.
Chrysler, the US unit of Germany's DaimlerChrysler, was the only
Detroit based automaker to boast an increase in market share during the
month - with sales rising 8%.
But America's loss was its foreign rivals' gain as they continued to
nibble away at the US market.
While Japan's top car maker Toyota and Nissan saw sales accelerate,
even the smaller Suzuki Motor Corp snapped up a more business with sales
improving 17.6% on a year ago.
In 2003, the firm launched an ambitious plan to triple US sales by 2007
as it seeks to become a bigger player in the Asian assault on the US
market.
Korea's Hyundai was another big gainer, turning in a 19% surge in
February sales.
Toyota put its rise in sales down to strong results for its redesigned
Avalon sedan and a 120% surge in sales of its gas-electric Prius hybrid
mid-size sedan as petrol-price conscious consumers looked to vehicles that
were cheaper to run.
"As gas prices continue their upward march, fuel efficiency catches the
public eye," Jim Press, vice president and chief operating officer of
Toyota's US sales arm, said in a statement.
(BBC) | 
Updated: 2005-03-02 09:04