It’s not very often that a drop in sales from the previous year would be greeted as good news, but when the drop is only 10.7% compared to a trend of 30-40% decreases in recent months, that’s going to cause some cheering at Ford headquarters. The automaker’s sales dropped from 173,462 in June, 2008, to 154,873 last month, its smallest decline in 16 months.
Ford is the first of the major automakers to announce their June sales, so it’s too early to tell whether this is the result of an overall spike in auto sales or whether Ford is gaining market share from Chrysler and GM because those companies were in bankruptcy in the last month. We’ll have an update as those sales figures are released.
Automotive News does report that American auto sales would begin to rebound last month with a sales rate of 10 million cars per year.
Update: The GM and Chrysler sales figures have been released. Chrysler saw a drop of 41.9% from June of last year, while GM declined by 33.4%. Those drops are pretty much in line with recent months, though higher than May’s figures. Toyota also took a steep decline of 31.9% and Honda dropped by 29.5%, so it appears that Ford benefited at least to some degree from the bankruptcies of GM and Chrysler, but the overall figures suggest that we have seen the bottom of the auto market. With the cash for clunkers legislation becoming active in late July, we could see July and August figures that are relatively flat compared to last year.