U.S. Auto Sales May Hit ‘Speed Bump’ on Snow, Toyota
Toyota Motor Corp.’s recalls and snowstorms across the U.S. may have slowed the rebound in auto sales in February, keeping some shoppers out of showrooms and dashing the industry’s hopes for bigger gains, Bloomberg reported.
Toyota’s deliveries probably fell 10 percent to drag the company to its lowest U.S. market share since 2005, researcher Edmunds.com said. General Motors Co. and Ford Motor Co. likely posted increases of 20 percent and 33 percent, based on the average of 5 analysts’ estimates compiled by Bloomberg.
February provided automakers with easy comparisons from a year earlier, when the recession was still deepening. The results being reported tomorrow may be weak enough to raise questions about the U.S. market’s health after a streak of sales increases that began in November.
“While February sales have improved from a year ago, the pace of the recovery has hit a speed bump,” said Jeff Schuster, forecasting chief at J.D. Power & Associates in Troy, Michigan. “Because of the Toyota recall, buyers are sitting on the sidelines. The severe storms in February also had some impact.”
The seasonally adjusted annual sales rate for cars and light trucks may have reached 10.3 million, the average of 8 estimates compiled by Bloomberg. That would be a fourth straight gain from a year earlier. The February 2009 pace was 9.1 million, the lowest since 1981.
“Based on sales of recent months, February sales should have been higher,” said Jessica Caldwell, director of industry analysis for Santa Monica, California-based Edmunds.com.
Of the seven largest automakers in the U.S., only Toyota and Chrysler Group LLC probably will post February sales declines, according to Edmunds.com and the analysts surveyed by Bloomberg. GM, Ford, Honda Motor Co., Nissan Motor Co. and Hyundai Motor Co. will have increases.
A monthly drop for Toyota would be the second in a row for the Toyota City, Japan-based automaker, which recalled about 8 million vehicles globally for defects linked to unintended acceleration and suspended U.S. sales of eight models, including Camry and Corolla sedans, starting Jan. 26. Dealers were able to resume the sales once repairs are made.
Edmunds.com estimated that the 10 percent slide in Toyota’s U.S. sales would cut its market share to 12.6 percent. TrueCar.com, another Santa Monica-based researcher, projected a 27 percent drop in deliveries by the world’s largest automaker.
More Industry

Kia Closes Out Summer With a Bang
Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.
Read More →
Indiana Dealership Changes Hands
A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.
Read More →
Texas Dealership No Longer in the Family
The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.
Read More →
Genesis Grows California Presence
The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.
Read More →
August Auto Sales a Mixed Bag
An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.
Read More →
EV Market Humming Along
July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.
Read More →
Auto Loan Delinquency Rates Stabilize
Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.
Read More →
EV Sales Recover in Q2
The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.
Read More →
The Cheapest Hybrids to Fuel
The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.
Read More →
Hybrids and SUVs Gaining Ground
The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.
Read More →