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GM sales slip, Ford's soar
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October 5, 1998: 12:33 p.m. ET
Analysts say GM is pinning hopes on new truck to regain market share
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NEW YORK (CNNfn) - Still reeling from the effects of a crippling 54-day labor strike this summer, General Motors said Monday its September sales fell more than 3 percent from a year ago while its 1998 model-year sales fell nearly 5 percent.
Meanwhile, Ford Motor Co. said U.S. sales of its cars and trucks rose 4.1 percent last month. The company also said it has added 20,000 vehicles to its fourth-quarter production plan to satisfy demand.
GM, the world's largest automaker, sold a total of 395,541 vehicles in September, down 3.1 percent from the year-ago month. Truck sales fell 1.5 percent and car sales slumped 4.2 percent.
For the 1998 model year, ended Sept. 30, GM suffered a 4.8 percent sales drop. Car sales alone plummeted some 11.6 percent.
Nonetheless, GM chose to focus on the positive. The company said its September volume was similar to months leading up to the strikes in July and August.
One analyst said September's figures indicated GM is on track with its recovery.
"A lot of people predicted a much sharper falloff," said James Kelleher, an analyst at Argus Research. "If you look at the numbers, they're not really alarming."
But Mark Rowen, an analyst at Salomon Smith Barney, said GM has found it more difficult than anticipated to regain market share.
"They'll probably be below 30 percent for the month," Rowen said. "Clearly, it's been more difficult than they expected, especially considering all the incentives GM has been offering to get market share."
Ford sets new record
Ford, the second-largest automaker, said it sold or leased 326,941 cars and trucks in September, up 4.1 percent from a year ago. Truck sales climbed 9.2 percent to 196,707, the fifth consecutive month of record truck sales. Cars sales were 130,234, down 2.6 percent.
Ford also said strong demand from retail customers lifted its sales to a third-quarter record. In July, August, and September, Ford U.S. sales totaled 993,723 units, up 2 percent from the previous record of 974,001 set last year.
"Third-quarter sales have exceeded our expectations," said Robert Rewey, Ford group vice president of marketing, sales, and service. "Our inventories are lean -- less than 60 days supply on both cars and trucks -- with a very low mix of 1998 models."
While GM's and Ford's sales figures continue to move in opposite directions, analysts said GM's sales should begin showing signs of life in October when it releases its new Chevrolet Silverado pickup truck.
"Ford has been able to run essentially unopposed," Kelleher said. "All through the strike GM's main concern was the new pickup rolling out on time. They're pledging to return to 31 percent of market share. By October, (GM's) sales should be up to more realistic levels."
"Basically, (GM) is dependent on the new truck launch and whether it's accepted," Rowen said.
Shares of GM [GM] slipped 1-1/4 to 53-3/4 in midday trading on the New York Stock Exchange. Ford [F] shares dropped 2-9/16 to 40-9/16. 
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