February 2009 Auto sales

Auto sales continued their downward slide as consumers put off major purchases in order to boost savings. The personal savings rate in January rose to 5%, a 14-year high, and as consumer spending falls, so do auto sales.

Ford

Ford (F) sales fell 48.2% in February; total vehicle sales of Ford, Lincoln and Mercury vehicles totaled 96,044 for the month.

Sport utility vehicles saw the biggest decrease in sales, down 71.4% from February of last year.

Inventory continues to remain high for the auto maker. The company reported February inventories totaling 405,000 vehicles, just 32% lower than inventory numbers reported at this time last year.

The company plans to reduce production and inventory, producing just 425,000 vehicles in the second quarter of this year, compared to 685,000 vehicles produced in the second quarter of 2008.

"A key element of our strategy to build our reputation and improve resale values is to align our production with consumer demand," said Ken Czubay, Ford vice president of sales and marketing. "Our disciplined approach to the market in these challenging times helps us to minimize costly incentives which erode brand value."

Ford shares fell slightly, just after sales were announced. James Bell, editor and publisher of Intellichoice, told the FOX Business Network that there would need to be a shift in American consumer attitudes for auto makers to see a significant rebound in demand.

“It’s a mental thing -- there’s a sense that throwing money into a vehicle is too large of a purchase for a lot of people and so they’re keeping their car longer than they probably normally would have,” Bell said. “There’s some mental click that’s going to have to happen to the American consumer to really help this industry and that’s what it’s going to take.”

Toyota

Japanese auto maker Toyota (TM) fared little better than Ford during the month of February.

The company saw sales plunge 37.3% in the U.S. in February, when adjusted for one less selling day in the month compared to last year. Total sales in the U.S. came to 96,475, compared to 160,892, during the same month one year ago.

Lexus sales experienced the largest decrease; passenger car sales for the brand fell 50.1% to 58,863, compared to sales of 89,723 last year.

General Motors

The country’s number-one selling auto maker the worst February since 1967. The company saw total vehicle sales plummet 52.9% to 127,296, compared to 270,423, one year ago.

Car sales fell 50%, to 58,813, compared to sales of 107,592 one year ago. Total truck sales fell 54.9%, to 73,483 from 162,831 last year; light vehicle sales fell 53.1% to 126,170, compared to 268,737 last year.

Inventory improved slightly, to 781,000 vehicles at the end of the month of February, a decrease of 17%. Inventories fell by 20,000 vehicles when compared to the month of January.

GM’s production forecast for the first quarter of 2009 remains at 380,000 vehicles; however, the company plans to trim production to 550,000 vehicles in the second quarter of 2009.

Chrysler

Chrysler reported a 44% drop in sales in the month of February for domestic vehicles. Sales in the U.S. fell to 84,050 compared to 150,093 one year ago.

Chrysler’s total truck sales in February fell 34%, to 65,264, compared to 98,594 during the same month last year.  Car sales in the U.S. are down 64%, falling to 18,786, compared to 51,499, in February last year. Jeep sales fell 32% to 21,941, compared to last year’s sales of 32,243.

Chrysler has cut floor planning costs and its inventory is down to 350,966 units, compared to 436,399 units last year. The company said it also intends to continue its Employee Pricing Plus Program through Mar. 31.