Ford leads first US auto-sales gain since '07

Ford Motor Co., Toyota Motor Corp. and Honda Motor Co. led U.S. auto sales to the first monthly gain since 2007 as the government's "cash for clunkers" rebates lured shoppers to showrooms.

The three carmakers each reported more August deliveries than a year earlier, while General Motors Co., Chrysler Group LLC and Nissan Motor Co. fell. The industry total rose 1 percent to 1.26 million, according to data compiled by Bloomberg.

Buoyed by the incentive program, the U.S. market snapped a streak of monthly declines dating to October 2007, before the start of the recession in December that year. The seasonally adjusted annual sales rate was 14.1 million, based on Bloomberg data. That was the highest since May 2008.

"It was a big success," Erich Merkle, president of Grand Rapids, Michigan-based Autoconomy LLC, said in a Bloomberg Television interview. "Cash for clunkers is going to hand the baton off to a fundamentally stronger economy as we move into the fourth quarter and into next year."

The response to the government subsidy depleted inventories of unsold cars and trucks to as much as one sixth of normal.

Chrysler said it had a 28-day supply of vehicles at month's end, Ford fell to 36 days and Detroit-based GM said it averaged 48 days. The industry standard is 60 days. Toyota reported an 11-day supply and Nissan said it had enough autos for 22 days.

"We think the inventory situation will get back to where we want it in two or three weeks," said Ken Czubay, Ford vice president of U.S. marketing, sales and service.

Incentive Boost

GM and Ford each said that without the government rebates, the annual sales rate in August would have been 10.5 million vehicles, an improvement from the 9.7 million rate in June, the last month without the incentives.

GM forecasts U.S. auto sales of 10.5 million for 2009, while Dearborn, Michigan-based Ford projects 10.5 million to 11 million. Last year's total was 13.2 million. Both automakers projected sales to be stronger in this year's second half.