Ford U.S. July Sales Fell 4.1%; GM Boosts Rebates
By: Steve Sawyer | Source: Bloomberg
August 3, 2004 1:10PM EST

Aug. 3 (Bloomberg) -- Ford Motor Co., the second- largest U.S. automaker, said sales fell 4.1 percent in July from a year earlier as higher incentives failed to win buyers. General Motors Corp. boosted rebates to as much as $6,000 on some vehicles. Ford sold 285,204 vehicles, with a 16 percent decline for cars and 1.8 percent rise for trucks, the Dearborn, Michigan-based company said in a statement. Results include import brands and medium-duty and heavy-duty trucks. Both carmakers are seeking to stem market-share losses to Asian automakers such as Toyota Motor Corp. and Nissan Motor Co., which spend less on rebates. Nissan July sales rose 36 percent. General Motors, seeking to cut near-record inventories, today raised rebates on some cars and trucks to as much as $6,000 for customers using its credit unit. U.S auto sales probably rebounded in July from June, when cars and trucks sold at the slowest pace in six years, as General Motors and Ford offered discounts to clear dealer lots before new models are introduced. Ford had its best retail month of this year, Chief Operating Officer James Padilla told analysts at a J.P. Morgan & Co. conference in Dearborn. Industry sales for July likely were at an annual rate of 17.3 million vehicles, up from 15.4 million in June and 17 million in July 2003, according to the average forecast of analysts and economists polled by Bloomberg News. The carmakers are reporting July sales today. Incentives General Motors, the world's largest automaker, in July rebates on sport-utility vehicles to $5,000 and on 2004- model cars and minivans to $4,000. Ford added $1,000 on seven models, boosting discounts to as much as $5,000. The average incentive on cars and light trucks was $3,991 per vehicle during the first half of July, up from $3,667 in June and $3,983 in July 2003, according to CNW Marketing Research in Bandon, Oregon. Ford was the biggest spender on incentives for the first time in 10 months, offering an average $4,861 per vehicle, CNW said. General Motors and Chrysler spent an average $4,629, Toyota spent $3,377, Nissan $1,877 and Honda Motor Co. $2,125. Ford's shares fell 31 cents to $14.74 in New York Stock Exchange composite trading at 12:45 p.m., and have declined 7.9 percent this year. Finance Unit The General Motors incentives starting today include boosting rebates by as much as $1,500 on vehicles financed by the General Motors Acceptance Corp., spokeswoman Deborah Silverman said. Higher incentives helped make July this year's best month for General Motors, chief sales analyst Paul Ballew said last week. The inventory bulge may drop General Motors' 2004 earnings below forecasts, analysts at Goldman, Sachs & Co. and Lehman Brothers Holdings Inc. said July 29. Declining U.S. market share through six months, including a 12 percent sales decline in June, raised inventories to a near-record 1.35 million vehicles. General Motors expects to cut vehicle inventories by 15

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