Auto Sales Remain in a Rut; Ford Overtakes Toyota

By JOHN KELL and SHARON TERLEP

U.S. vehicle sales remained in a deep rut last month, damping hopes that the auto sector would begin to see some relief despite the
recession. Ford Motor Co., the healthiest of Detroit's auto makers, scored a small victory, outselling Toyota Motor Co. for the first time in at least a
year as the Japanese auto maker's sales fell even more preciptiously than those of its U.S. rival.

Toyota saw a 42% decline in April, while Ford's U.S. sales fell 32%. General Motors Corp., the top seller in the U.S., reported a 33% drop. Overall, the annual selling rate remained stuck in the neighborhood of nine million vehicles, likely falling below 850,000 car and truck sales, according to early auto maker estimates. The drop represents a decline of 35% to 40% from a year ago. "Industrywide, April felt more like a dust bowl than a spring garden for new car sales," said Jim O'Donnell, president of BMW in North America, in a statement.

Uncertainty around GM and Chrysler LLC, which entered bankruptcy protection on Thursday, weighed on sales the month's end and erased
a strong start to the month, auto makers said. Chrysler finished with a 48% decline for April.

"I thought we were going to close much better than we did," GM sales Chief Mark LaNeve said. "We didn't see a significant break up or
down."

Shaky consumer confidence and high levels of joblessness offset benefits of increased credit availability, deep discounts on cars and trucks
and U.S. government backing of warranties on GM and Chrysler vehicles.

"We continue to operate in a very challenging economic and competitive environment," said Ken Czubay, Ford vice president of sales and
marketing.
While auto makers said they see signs of an impending rebound, more turmoil lies ahead this spring as GM and Chrysler race to remake
themselves under close watch of the U.S. government.
GM said it sold 172,150 vehicles in the U.S. in April, down from 257,638 a year earlier. Its car sales fell 41%, while sales of light trucks –
which include sport utility vehicles, vans and pickups – fell 27%. On the bright side, the auto maker said its volumes were up significantly
from March.
Ford sold 133,979 light vehicles, down from 195,665 a year earlier. But the company, which outsold Toyota in the U.S. for the first time
since March 2008, said it is gaining market share.
Ford, Lincoln and Mercury car sales dropped 31% despite record sales of the Fusion sedan. Sport-utility vehicles continued to tumble,
falling 61% in April. Sales of pickups and vans dropped 36%.
Toyota sold 126,540 vehicles in the U.S., as car and light-truck sales fell by a similar margin.
At Chrysler, April sales dropped to 76,682 vehicles, the lowest total since January and putting its year-to-date figure below Honda Motor
Co. The Japanese auto maker's U.S. sales fell 25% to 101,029 last month.
Still, Chrysler executives sounded a hopeful note as it prepares to restructure itself in alliance with Italy's Fiat.
"The industry appears to have stabilized, as it's been fairly level for the past four months," said President Jim Press. "We know where the
bottom is, and as the economy struggles to recover, vehicle sales should follow."
Also Friday, Nissan Motor Co. said its U.S. sales fell 38% to 47,190 vehicles. Hyundai Motor Co. reported its April sales dropped 14% to
33,952, while Daimler AG's U.S. sales fell 31% to 15,910.