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GM, Ford sizzle in June
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July 2, 1999: 7:51 p.m. ET
Automakers' June sales strongest in more than a decade
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NEW YORK (CNNfn) - Ford Motor Co. and General Motors both posted strong June sales figures Friday, indicating American consumers -- bolstered by the robust U.S. economy -- continue to flock to their automobile dealers at a fervent pace.
The results came a day after DaimlerChrysler reported a 5.3 percent sales drop last month. But strong results from Toyota and other Japanese automakers Thursday pointed toward another strong month overall for the industry.
All told, automakers sold more than 1.6 million cars, trucks and minivans last month, a blistering pace that translates into an annualized rate of 17.2 million. Last year's June rate was 17.04 million.
Visions of a record year
The strong numbers had GM officials thinking about the industry's record year of 1986, when carmakers sold 16.1 million vehicles. Last year, the industry sold just under 16 million light vehicles.
"I can't find any forecaster in this country who forecast the industry running this strong," GM Sales and Marketing Vice President Roy Roberts said. "It's got a chance of beating the 1986 record year, and I think we're on track to do just that."
But the torrid sales pace has some analysts worried.
"That's a strong month by any measure," Arnhold and Bleichroeder analyst Greg Kagay said. "It scares me. At some point, it's almost too strong. I don't think it's sustainable for the rest of the year."
Ford posts a record month
Ford, the world's second-largest automaker, sold a record 431,033 vehicles during June, up 1.8 percent from the year ago period. Aided by the company's recent acquisition of Volvo to round out its luxury car business, that helped eclipse Ford's previous sales record of more than 424,000 automobiles during June 1978.
Likewise, General Motors (GM) sold or leased slightly more than 497,000 cars and trucks during June, a 0.8 percent increase over last June and its best sales month since May 1989.
Both companies attributed the gains to strong passenger car sales, a reversal from previous months when truck purchases have driven the company's top line.
Ford's total car sales jumped 3.8 percent to nearly 187,300 led by strong sales of the Ford Taurus, the redesigned Ford Mustang and Mercury Cougar.
Sales of the Ford Mustang zoomed by June 1998 totals by 23 percent.
GM passenger car sales rose a more modest 2 percent to 258,600, driven mainly by stronger interest in the Saab 9000 and Buick LeSabre.
Truck sales at both companies remained relatively flat compared to last year, although GM truck sales of 238,420, while down 0.4 percent from June 1998, still posted the second best sales month in company history.
That included the second best June figure ever posted for the Chevrolet Suburban and the best June figure ever for the Chevrolet Tracker.
The results gave company executives high hopes for a record 1999.
"I think we're beyond" eclipsing 1998 sales, said Bob Rewey, a Ford vice president. "The question is fast becoming: By how much will the industry sales record be eclipsed?"
-- from staff and wire reports
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