Auto manufacturers have released sales numbers for January 2008, with most companies reporting decreases as compared to the same period last year. While this is bad news for automakers, consumers are likely to benefit from increased incentives as sales decline. "U.S. auto sales numbers released Friday illustrate the challenges that auto makers face as consumers postpone purchases owing to worsening conditions in the housing market, financial market volatility and high fuel prices," says CNN Money. CNN continues, "Analysts were expecting a weak number, but the data released Friday -- with the exception of a positive surprise from GM -- were worse than anticipated."
General Motors "was the only one of the six biggest automakers whose sales in the United States increased last month," says the New York Times. The automaker's sales are up 2.1 percent over January 2007. The Times attributes the success to high sales enjoyed by the Chevrolet Malibu and Cadillac CTS. The other major automakers don't fare so well: Toyota and American Honda Motor Co., Inc. report decreases of 2.3 percent, Ford Motor Company's sales (including Lincoln, Mercury, Jaguar, Land Rover and Volvo) are down 4 percent from January 2007, and Nissan North America reports a 7.3 percent decrease.
Of course, a few brands still managed to buck the trend. Mazda North American Operations has reported its "best January since 1994 with sales of 21,212 vehicles for January 2008, accounting for a 10.2 percent increase versus last year." The automaker says "January sales were led in volume by MAZDA3, which reported sales of 6,579 units." Mercedes-Benz USA is also reporting good news with "sales of 18,275 new vehicles for January 2008, up 7.1 percent from last January, marking the best January sales in the company's history." Likewise, Volvo Cars of North America reports a sales spike, with a 2.8 percent increase in U.S. sales compared to January 2007. "The Volvo XC70 has resonated well with the media as well as consumers," says the automaker. Audi of America has also enjoyed small gains, with "an increase of 0.3% from last year's figures."
What does all this mean for consumers? With the market down, automakers are turning to incentives to boost sales, especially for the slower-selling SUVs and pickup trucks. The Courier-Journal reports that incentives are up this year: "GM and Toyota are spending 38 percent to 55 percent more to sweeten consumer appetites. At GM, incentive spending jumped from a $2,454 average-per-vehicle discount in January last year to $3,402 now, Edwards.com reported. The average discount offered by Toyota in January last year was $717 per vehicle, now it's up to $1,109."
The best place to find incentives may not be in the nearest dealership. Automotive News reporter Jamie LaReau recounts her own experience purchasing a Volvo C30. "When I entered a dealership," she reports, "I got sucked into a sales song and dance." Unhappy with the service or the price she received from the dealer on a vehicle located in another state, LaReau "visited the Web site of the out-of-state dealership. Lo and behold, the car was listed for $1,000 less than the price quoted by the local dealership." She concludes, "I'm not surprised that dealers are selling more cars and trucks online," and "Now I wouldn't do it any other way."
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