GM, Ford lose ground to Asian rivals

Ford’s Mustang coupe had its highest May sales since 1980, up 47 percent from last May. But that blistering pace will likely subside in June, Pipas said, because the company can’t keep up with demand. GM’s Cadillac division also enjoyed its best sales month in 12 years.

The news for Asian automakers was generally good, though results were lower than the double-digit increases some companies saw in April. Toyota Motor Corp.’s sales rose 7.8 percent last month, dragged down a bit by flat truck sales. Overall sales for the automaker are up 11.9 percent for the year.

Korean automaker Hyundai Motor Co.’s truck sales are up 23 percent for the year thanks to its new Tucson SUV, which had a record sales month in May. Hyundai’s sales gained 8.5 percent for the month and 12.5 percent for the year.

Nissan Motor Co.’s truck sales are up 27 percent for the year, led by the Armada SUV. Nissan’s sales jumped 15.5 percent in May and are up 15.8 percent for the year.

“We’re getting on people’s shopping lists for the first time” in the SUV segment, said Jed Connelly, Nissan North America’s senior vice president for sales and marketing.

Honda Motor Co. saw a 19 percent decline in its aging car lineup. But its trucks, including the new Honda Ridgeline pickup, saw a 14.3 percent increase over last May. Honda’s sales are up less than 1 percent for the year.

Sales percentages are adjusted for differences in the number of selling days. There were 24 selling days in May 2005 and 26 in May 2004.

GM, the world’s largest automaker, said it plans to cut third-quarter production by more than 100,000 vehicles, or 9 percent. Ford, meanwhile, said it plans to trim third-quarter production by 17,000 vehicles, or 2 percent.

Auto suppliers, already pinched by high steel prices, have been struggling with the cuts all year. GM cut production by around 10 percent in the first and second quarters, and Ford cut production by 10 percent in the first quarter and nearly 5 percent in the second quarter.

Pipas said the cuts will help the automakers adjust their inventories and predicted that production will stabilize in the second half of the year.

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