Toyota Passes Ford As No. 2 In U.S. Sales

For First Time In 75 Years, Detroit Automaker Drops To Third In Car Sales

(AP)  Toyota Motor Corp. overtook Ford Motor Co. to become the No. 2 automaker by U.S. sales in 2007, using new products and relentless strategy to break Ford's 75-year lock on the position.

Toyota sold 2.62 million cars and trucks in 2007, which amounted to 48,226 more than Ford, according to sales figures released Thursday. Toyota's sales were up 3 percent for the year, buoyed by new products like the Toyota Tundra pickup, which saw sales jump 57 percent. Ford's sales fell 12 percent to 2.572 million vehicles.

General Motors Corp. remained the U.S. sales leader, selling 3.82 million vehicles in 2007. But that was down 6 percent from the previous year as customers turned away from some large sedans and sport utility vehicles and GM cut low-profit sales to employees and rental car agencies. GM's car sales fell 8 percent for the year while truck sales were down 4 percent.

Overall, the year was expected to be the worst for the auto industry since 1998 as consumers fretted over high gas prices, falling home prices and the economy.

December also was a tough month for automakers despite a slew of holiday discounts. Toyota's sales slipped 2 percent for the month, while GM's sales were down 4 percent and Ford's fell 9 percent.

Nissan Motor Co.'s December sales were down 2.4 percent, while Honda Motor Co.'s December sales were flat, with a 10 percent increase in car sales canceled out by a 10 percent decline in truck sales.

"This was definitely a challenging year to be in the car business, and 2008 isn't likely to be a piece of cake," Dick Colliver, executive vice president of American Honda, said in a statement.

Colliver said automakers with more fuel-efficient offerings fared better as gas prices took their toll. Honda's full-year sales were up 2.5 percent, thanks in part to booming sales of the Fit subcompact, while Nissan's shot up 5 percent thanks to strong sales of the Versa subcompact.

Chrysler LLC also had a solid December, with sales up 1 percent for the month thanks to brisk sales of the new Dodge Caravan minivan, which saw a 51 percent jump. Chrysler sales were down 3 percent for the year as falling truck and SUV sales erased gains on the car side.

Ford's car sales plummeted 24 percent for all of 2007 as some models like the Ford Mustang aged and a new Ford Taurus sedan was unable to match the volumes of the older version. Ford also cut rental-car sales by 32 percent over the year. Truck sales were down 5 percent.

Ford corporate historian Bob Kreipke said it was the first time since 1931 that Ford wasn't second behind GM in U.S. sales.

Toyota spokesman Irv Miller said the distinction wasn't important to Toyota.

"We don't pay a lot of attention to rankings such as that," he said. "It's always nice to see the product is recognized and accepted by the consumer. The consumer's going to be the ultimate determining factor in who the winner is."

Toyota got a boost partly from heavier than usual incentive spending as its Toyota Tundra joined the fiercely competitive full-size truck segment. Auto research site Edmunds.com estimated Toyota's incentives jumped from $822 to $1,063 per vehicle between November and December. But Toyota's general manager for U.S. sales, Bob Carter, said Toyota's incentives remain some of the lowest in the industry.

Jim Farley, who recently became Ford's global marketing chief after a career at Toyota, said the new numbers won't change Ford's recovery plan, which includes carefully targeted use of incentives.

"In fact, it actually accelerates the way we're running the business," Farley told The Associated Press in an interview Thursday morning. "It accentuates the difference between how we're running the business and how our competitors are running the business. It requires us to stick to the plan, no doubt, but it also requires us to really accelerate the development of new products."

Farley pointed out that Ford had some hits in 2007, particularly its Ford Edge and Lincoln MKX crossover vehicles. Ford crossovers grew 62 percent over the year, far outpacing the industrywide average of 17 percent, the company said.

Ford shares fell 15 cents to $6.45 after sinking to a 52-week low of $6.41 earlier in the session. GM shares lost 49 cents to $23.92 after dropping to a 52-week low of $23.34 earlier in the day. Toyota's U.S. shares rose 44 cents to $106.90 in trading in New York.

[logicanada]

I own a 2001 focus with a Mitsubishi engine. It has performed well as a second car but it seems most of the parts come from Japan as well. I have also owned other Japanese cars with Honda being my foreign preference. They all seem to out-perform,out-last and out-economize American models.
In a world of rising fuel prices, soon G.M will be falling to second place as well.

[jfarah1]

I think the Honda civic is the most BORING car ever concieved.
If you like the imports but want to buy domestic, try a Saturn! They''re really good on gas & their plant has won awards for quality.

Chevrolet sells only two compact models in the United States, the Aveo and the Cobalt.

In Mexico, Chevrolet sells seven subcompact vehicles.

with 100 dollar oil expected to stay, there will be more compacts sold from now on - CHEVY!.

[prairiefox1]

I own a Ford Focus. It''''s a great car. Before that, I had a Ford Escort. I would love to keep buying Ford, but I''''m wondering if they''''re going to drop smaller cars altogether eventually. American car makers make nice small cars for the European market--why don''''t they sell the models here?!


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Posted by wangbang747
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I LIKE THE WAY YOU USED FOCUS AS A REPLACEMENT TO THE FOUR LETTER WORD THAT CBS WOULD CENSOR!

[prairiefox1]

AMERICAN AUTO MAKERS HAVE DOWNSIZED, CUT QUALITY AND ANYTHING TO CUT COSTS REQUIRED TO MAKE A QUALITY AUTOMOBILE SO THEY COULD INCREASE THEIR PROFITS!
WELL SON! YOUR REPUTATION HAS CAUGHT UP WITH YOU AND YOU HAVE PERMANENTLY LOST YOUR CUSTOMERS! PUT THAT IN YOUR BOTTOM LINE! AND ENJOY!

[prairiefox1]

December 7, 1941. A date that will live in infamy.


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Posted by gunshack1
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WHAT HAS THAT GOT TO DO WITH THE PRICE OF POTATOES?

[prairiefox1]

WITH FORDS PLANNED OBSOLESCENCE AND NOT SELLING REPLACEMENT PARTS BUT SELLING ASSEMBLIES FOR BIG BUCKS I DO HOPE THEY ARE THIRD TO HARLEY DAVIDSON!
AND I WILL NEVER BUY ANOTHER FORD F-ing 150!

[gunshack1]

When all the manufacturing jobs in this country are gone to Japan, China, Korea or wherever, who the he__ in this country will be able to buy the foreign products? We are becoming a nation of burger flippers and lawyers.

[lvdragonlady-2009]

This is the kind of sh*t that happens when we let foreign companies sell their products in this country and we buy more from them then we do from our companies here in the USA. I am a diehard GM person and even though the foreign vehicles are cute and sometimes cheaper, I will always buy American. Wake up America, this kind of problem is only going to get worse not better. We need to tell our congress and big companies to bring work back to this country and to h*ll the foreign products.
p.s. No I do not work for GM.

[drivelphobe]

Give Ford a little time. Big Al is going to change this. The stock is cheap again too, so now is the time to buy. Toyota does make a nice car, but they look a little oriental to me. I like American cars, but wish they would spell out things like "oil" on the dash board instead of using those stupid little symbols or drawings. The dash boards are almost impossible to figure out because Detroit is trying to please the foreign buyer. I vote for using English to identify functions on the car. Enough sign language.

[gunshack1]

December 7, 1941. A date that will live in infamy.

[brianbwb-2009]

Upgrade the fuel and engine technology, then reintroduce the 1956 T-bird, and the 1967 Mustang models, especially the convertibles. Maybe now you''re starting to get the message, overly expensive cars that look like cheap Japanese toys won''t outsell the actual cheap Japanese toys, you dummies, who wants to pay more for a copy?

[wangbang]

I own a Ford Focus. It''s a great car. Before that, I had a Ford Escort. I would love to keep buying Ford, but I''m wondering if they''re going to drop smaller cars altogether eventually. American car makers make nice small cars for the European market--why don''t they sell the models here?!

[formrusmcsgt]

More Americans buy Hondas/Toyotas because they make better cars. Ford/GM/Chrysler make good cars, just not good enough.

Posted by incog-nito at 06:51 PM : Jan 03, 2008

The big three are reaping what they sowed in the ''70''s and ''80''s.

Japan started building a better more reliable product than the American companies.

Was their response to build a better product? No. Their response was to convince the government to put import quotas on imports.

It didn''t work.

The big three finally wised up to the fact that Americans weren''t going to but their ''70''s technology and low quality forever and finally decided that they would, in fact, compete on a quality basis.

They''re getting better, but the are still trying to overcome the reputations that they themselves decided to make for themselves by refusing to compete in the first place.

[goldesprit]

There should be LOTS of import taxes--of course.

Also--I''''ll bet more toasters sold than microwaves, world wide.

I have a Ford Focus-- and when I need to pass one of those...tents on wheels...it''''s just a matter of accelleration.

[goldesprit]

There should be lost of import taxes--of course.

Also--I''ll bet more toasters sold than microwaves, world wide.

I have a Ford Focus-- and when I need to pass one of those...tents on wheels...it''s just a matter of accelleration.

[incog-nito]

jfarah1: Simple: More Americans buy Hondas/Toyotas because they make better cars. Ford/GM/Chrysler make good cars, just not good enough.

[jfarah1]

Big thanks to all the Americans that decided to export their money to Japan by buying a Toyota/Honda etc...

Oddly, here in Canada, the top 3 automakers are GM, Chrysler & Ford. They''re good cars.

You know, China or Japan would have stepped in long ago if this was happening to their industry. Can you say import tax !!??

[usayesterday]

An article about Toyota a few weeks ago, mentioned how Toyota has plans this year to surpass the total sales of GM to become number one in the U.S.

But let''s keep one thing in mind...

...many of Ford''s and GM''s sales go to the car rental companies, and those are counted in the total sales numbers (even though they are fleet sales).

Toyota does not offer the volume discounts that the car rental companies need. Thus, more individuals are buying Toyotas as opposed to car rental companies. If the U.S. sales numbers were separated between fleet sales and individual owner/driver sales, then the sales of the "big 3" U.S. car companies would be at or near the bottom.

Perhaps when the U.S. auto executives decide to invest more into the quality of their cars as opposed to their own paychecks and bonuses, then.... golly gee.... they might actually make better quality cars that the American people would want to buy!