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U.S. auto sales drop in February

Associated Press The Spokesman-Review

DETROIT — Sales of new vehicles fell 8 percent overall during the first two weeks in February, but there was some indication General Motors Corp.’s new vehicles and lower prices are attracting buyers, an automotive data firm reported Tuesday.

Honda Motor Co. was the only manufacturer that saw its U.S. vehicle sales climb in the first 12 days of the month, up 4 percent from the same time a year ago, according to the Power Information Network, a division of J.D. Power and Associates. Honda is benefiting from positive reviews of its revamped Civic as well as growing sales of its Ridgeline pickup, said Tom Libby, the Power Information Network’s senior director of industry analysis.

Several automakers, including GM, Toyota Motor Corp. and Nissan Motor Co., saw their sales fall slightly but at a slower rate than the industry. GM and Toyota both saw 1 percent sales declines, while Nissan was down 7 percent. It was the first time GM has outperformed the industry since its employee discount incentive program ended last fall.

Last month, GM lowered sticker prices on three-quarters of its U.S. vehicles for an average decrease of $1,300 per vehicle. The move was intended to wean buyers from costly incentives.

At the same time, GM’s revamped lineup of sport utility vehicles is hitting the market, starting with the 2007 Chevrolet Tahoe. Tahoe sales were up 53 percent in January over the year before.

“General Motors is showing signs of life,” Libby said.

GM wasn’t the only automaker pulling back on incentives. Forty-eight percent of new vehicle sales in early February included a rebate, down from half the year before. The average rebate amount fell 6 percent to $1,141.

DaimlerChrysler AG led the pack, with average rebates falling 20 percent, while GM’s rebates fell by 15 percent. Ford Motor Co. and Nissan increased their rebates from the year before, the Power Information Network said.

Data was collected from 10,000 dealerships nationwide. The data doesn’t include sales to government or corporate fleets, which inflated sales numbers in January.

Automakers are scheduled to release February sales results on March 1.