The Three Big Losers of July 2007 Car Sales

Almost all US based car companies had decline on their July 2007 car sales. Only BMW and Nissan North America were profitable last month.
The Big Three turned out to be the three big losers on the car market when the July car sales record was released. General Motors Corporation, Ford Motor Company and Chrysler Group noted a huge decline on their sales report. General Motors, the Big Three top notcher, led the sales decline by having 18.5% deduction on their sales compared to July 2007. Ford Motor Company comes next to GM with 15.7% decrease on their 241,339 units of Ford cars sold one year ago. The Chrysler Group completes the top three big losers this July having a 4.6% sales decrease from its 150,349 units of cars sold in 2006 s July. The Detroit based companies had a 19% combined drop on their sales last month and blamed the high gas price as well as the slumping housing market as the major cause of the decline.
The US car market fell by 12.3% on an overall rating of the cars and light trucks sales last month. And a huge number of 52% was contributed by both Japanese and European car makers.
Erich Merkle, an industry analyst of consulting firm IRN Incorporated said, "Housing sales are in the tank, and now we re seeing the same in auto sales. What else is there? You can t support an economy on groceries and gasoline."
Other car makers also noted decrease on their car sales last month. Toyota Motor Corporation had its first ever sales decline from last year s sales. Last month Toyota noted a 3.5% decline on the sales of its cars and light trucks car models. Honda North America, also a Japanese car maker had a 3.2% decrease on its vehicle sales. From last year s 151,804 units sold, Honda only got 141,049 units of cars sold last month.
Ford Motor Corporation s Jaguar brand was the highest loser among all the car brands of these car companies. Jaguar remained to be unprofitable last month noting a huge decline of 40.1% on its car sales. Other Ford car brands like Volvo and Ford also decreased on its car sales while both Lincoln and Land Rover remained to be profitable despite all the odds.
Recalls, or reports of malfunctioning car parts like faulty ladder bar of course, doesn t help auto makers. But this is not the main reason why car companies fail to be profitable. The sudden increase on gas prices, the craving needs for cash and the changing demands of the car buyers are just few among the reason why they fail to sell these months.



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