Hyundai finished the first two quarters with 2.153 million vehicles sold, compared to 2.145 for Ford. Of the ten biggest automakers, Ford took the biggest sales hit in the first half, dropping 30.6%.

This isn't the whole story. At the beginning of this year we were all worked up over Toyota knocking out GM as the world's largest automaker. According to the first-half numbers Toyota is ahead of GM by less than 12,000 vehicles — last year at this time, Toyota was ahead by over 200,000 units. Whereas GM sales are down 21.8%, Toyota's are down 26.0%. With six months to go GM is now increasing production at its Lordstown, Ohio and Ontario, Canada plants. Could we be in for a photo finish.

This isn't the whole story as sales don't directly correspond to profitability and Ford, like other automakers, partially prepared for this by drastically cutting back production. Still, the global ranking of manufacturers is a significant measurement for morale and this is yet another hit to the not-so-Big Three psyche.

[Kia via AutoBlog]

The company says the incentives, which begin Wednesday, focus on the bottom-line price of the car as opposed to, you know, the interest consumers'll owe on top of the principal after they default on their loans. They include $4,000 cash, but apparently there's another $1,000 available for current Chrysler vehicle owners, and up to $1,000 for financing through the buyers participating credit union. So, that sounds to us like a total of $6,000 available to certain buyers. [via AP]

Photo Credit: Scott Olson / Getty Images News

Basically, the General's two arguments against bankruptcy are first, that they'll see a sales drop, depending on whether the bankruptcy is "pre-solicited," a "cram-down" or a "traditional" process of anywhere from 4% (U.S. volume loss) and 3% (long term U.S. volume loss) to 13% (U.S. volume loss) and 10% (long term U.S. volume loss). Second, they believe that some forms of their $170 billion in debt cannot be easily wiped clean in a bankruptcy.

We happen to think, for at least the first argument on a sales drop, it's plain bunk. GM is already in a state of de facto bankruptcy and is already losing sales due to potential customers making other choices in the market. Secondly, many consumers are on the sidelines right now, so why focus on market share when people just aren't buying?

But more importantly, because of the overall economic climate, right now would be the most favorable time to receive a bankruptcy deal backed by the federal government, a situation that could provide a more favorable customer reaction than a straight bankruptcy. As far as the debt obligations arguments, we're still wading through that side of the argument. Frankly, so is GM.

But our initial thought is GM really believes they'll be able to get bondholders to reduce claims. However, that's almost an impossibility given the requirements by the Federal Government to show long-term viability and a restructuring plan for debt by March 31st, 2009.

A secondary concern for GM may be over Section 360 — the "Stalking Horse" provision. That provision allows a debtor who, instead of owning common stock, but rather bonds and liens on assets to make a bid for the company. If the "Stalking Horse" wins the bid, he owns the company for the cost of the debt and the bid. If it's a real concern, expect to watch someone buying up large chunks of GM debt at $0.20 - $0.30 on the dollar.

That's about as far as we've made it so far, so for the moment, enjoy GM's argument below from their viability plan:

As noted in the General Motors‘ December 2 submission, some industry observers have suggested bankruptcy is a reasonable, if not preferred, restructuring option-allowing for a more all-encompassing resolution of the Company‘s liabilities than otherwise possible. It has also been suggested that a bankruptcy proceeding can be quick, allowing the new company to be up and running in a matter of weeks.

―Quick‖ has seldom been the pace of bankruptcy proceedings in this country. Based on data supplied by Lakeview Capital, of 159 cases completed since 1995 involving companies with assets of $1 billion or greater, only 4 cases (3%) exited bankruptcy in 90 days or less. The vast majority of these cases took one year or more, with one-third taking two years or more. The size and scope of General Motors makes it unique relative to this sample, suggesting a longer versus a shorter duration.

The more important consideration is revenue loss. All research indicates bankruptcy would have a dramatic impact on GM sales and revenue. According to CNW Market Research, more than 80% of consumers intending to purchase a new vehicle (during the following 6 months) would not do so from a company that filed for bankruptcy. In the case of Daewoo Motor, this company experienced a permanent 40% reduction in business in South Korea following a two-year restructuring. If the South Korean market was as competitive as the U.S., Daewoo‘s revenue loss would likely have been far greater.

GM has attempted to model the potential cost and benefits of various bankruptcy scenarios. Although any model requires simplifying assumptions, which inherently cause them to understate various risks, the analysis confirms that a restructuring process outside of bankruptcy is highly preferable for all constituencies. The Company‘s detailed analysis of bankruptcy scenarios, compared to the proposed Restructuring Plan, is contained in Appendix L.

Structural Alternatives to Proposed Restructuring Plan

The Plan presented in this report is predicated upon restructuring the operations and
liability/capital structure of the Company without submitting to a U.S. bankruptcy process (―out
of court process‖).

An out of court process will achieve the key financial objectives of the plan without the trauma
and systemic risk inherent in a bankruptcy case. An out of court process demonstrates the
Company's ability to re-pay the U.S. Department of Treasury loans and to structure a viable
business with a positive net present value, credibility with consumers and a competitive
operating and capital structure, while minimizing the risk that further financial reorganization
will be required.

A fundamental element of the Company's restructuring plan is to avoid further revenue losses
that arise from bankruptcy. The out of court process is critical to that objective. Although the
Company recognizes that the out of court process does not afford the Company the option to use
bankruptcy powers to unilaterally impair claims, reject executory contracts and the like, the
Company believes that those potential benefits are more than offset by the actual and potential
negative consequences of bankruptcy. Specifically, the incremental portion of the Company's
liabilities that can be practically addressed in a bankruptcy is quite limited, compared to the level
of support and additional funding that would be necessary to mitigate revenue losses and other
consequences.

Consumer confidence is essential to the Company's future success. For most consumers, the
purchase of a vehicle represents their second largest expenditure (after housing). Consumers
view resale value and the assured availability of warranty coverage and long-term parts and
service as critical inputs to their purchase decision. It is the judgment of the Company that a
bankruptcy filing would substantially, if not completely, erode consumers' confidence in GM's
ability to deliver on those requirements. The consumer, with a choice of a comparable product
backed by a manufacturer operating outside bankruptcy, is substantially less likely to opt for the
bankruptcy tainted product. The resulting deep and precipitous slide in the Company's revenue
would endanger not only the Company's viability, but that of countless of its dealers and
suppliers, which are in turn relied upon by other manufacturers and the public. In addition, a GM
bankruptcy would threaten GMAC's ability to fund itself in the capital markets, impairing
GMAC's capacity to provide wholesale and retail financing essential to support the viability of
GM.

The systemic risk to the automotive industry and the overall U.S. economy are considerable, just
as the bankruptcy of Lehman had a ripple effect throughout the financial industry. Indeed, the
risks relating to a bankruptcy in the automotive sector may be more extensive than Lehman
presented in light of the wider range of constituencies, profound employment effects and the
potential impact on consumer sentiment. Based upon exhaustive analysis, these risks outweigh
the benefits of a bankruptcy based approach to the Company's restructuring.

It should also be noted, as will be shown below, that the financing requirements of the Company
significantly exceed those in an out of court process, irrespective of the bankruptcy route chosen.
Additionally, many of the liabilities that could be impaired in a traditional bankruptcy process
could have the effect of shifting those liabilities to the U.S. Government.

To assess the relative merits of an out of court process, the Company has compared the projected
results of its viability plan against projected outcomes in three different bankruptcy scenarios.
The analysis included in this Appendix addressing each scenario necessarily makes a number of
simplifying assumptions, including that any bankruptcy proceeds in an orderly fashion along a
prescribed timeline. In truth and in practice, the process involves many risks, virtually all of
which involve delays in timing. To the extent that the Company enters bankruptcy, even via one
of the two accelerated strategies, there is an exceptionally high risk that the timeframes extend
beyond those presently assumed, rendering the projected DIP funding requirements understated
and optimistic. In a traditional Chapter 11 process designed to address all of the Company's
liability structure, given the complexity and scope of General Motors' global business operations,
there is a substantial risk that emergence from bankruptcy will prove impossible and a
liquidation pursuant to Chapter 7 of the Bankruptcy Code will result. Finally, given the
Company's financial position and the state of the credit markets, any DIP financing would need
to be provided by the U.S. Government. Otherwise, General Motors would not be able to
operate in Chapter 11 and would very likely be compelled to liquidate.

The three scenarios considered were as follows:

1. ―Pre-solicited or Pre-packaged Chapter 11‖ — Under this scenario, and as
contemplated in the Company's planned Bond/VEBA exchange offer, tendering
bondholders would be required to vote affirmatively to accept a Chapter 11 Plan of
Reorganization. If possible (because the Plan of Reorganization received the requisite
votes) and necessary (because the out of court process failed), the exchange plan would
be implemented in bankruptcy, binding 100% of the bondholders to accept consideration
equivalent to that contemplated in the out of court exchange. However, this scenario
requires an agreement in advance regarding the treatment of VEBA liabilities acceptable
to bondholders, as well as a commitment for government financing. No other creditor
would be impaired. Existing shareholders would be almost entirely diluted.

This scenario is assumed to require approximately 60-65 days to achieve confirmation of
the plan and exit from Chapter 11. It will cause a quite severe near-term negative revenue
impact during the bankruptcy proceeding, and a less severe but still serious long-term
negative revenue impact after exiting from Chapter 11.

2. ―Pre-negotiated Cram-Down Plan‖ — Under this option, which is more
aggressive than a consensual pre-packaged Chapter 11 approach discussed in Scenario 1
above, the Company would seek a larger conversion of debt to equity. This strategy
could take many forms, including: (A) complete conversion of the bonds to equity; (B)
reduction in obligations from impairing additional classes of claims (including potentially
litigation liabilities, dealer claims and contract rejection damages); and (C) greater to
perhaps complete equitization of the VEBA obligations. This scenario is assumed to
require a minimum of 90 days for its least aggressive variant, up to as long as six months
or more for more aggressive variants, such as converting a portion of other liabilities to
equity. If the Company were to pursue a larger or complete conversion of the VEBA to equity, the assumption is that this would be a vigorously contested, endangering
resolution with the UAW and potentially forcing the Company into an extended
traditional Chapter 11 case or free-fall bankruptcy as described in Scenario 3.

For analytical purposes, GM has assumed only the benefits in (A) above, or conversion of
the bonds to equity, completed in the shortest (90 day) timeframe possible. The negative
revenue impact during this option is expected to be even more severe, with greater
permanent effects, compared to the pre-solicited process described in Scenario 1. In
addition, the cram down process results in an incremental $4 billion debt reduction, or
complete conversion of all U.S. unsecured debt to equity, but also involves significantly
higher levels of DIP financing required which, in turn, produces a significantly negative
NPV. There would be significantly less negative impact than in a traditional Chapter 11,
which has broader implications for the industry as a whole. However, this scenario
includes elements likely to elicit opposition, which increases the timing risks and the risk
that Scenario 2 might evolve into the substantially less favorable Scenario 3.

3. ―Traditional Chapter 11 Case‖ — Under this scenario, the objective would be
to accomplish a more comprehensive restructuring of the liability portion of the balance
sheet, along with substantial asset dispositions, using all of the tools traditionally
available to debtors to restructure through a court supervised process.

This process could be expected to require 18-24 months, with an estimated 24 months
used for analytical purposes in this appendix. Financially, while the traditional
bankruptcy process allows for greater liability reduction potential, incremental funding
requirements surge close to a $100 billion or more, reflecting catastrophic revenue
reduction impact as well as wholesale (i.e., dealer) financing requirements and supplier
support. The revenue impact during this type of bankruptcy would be very severe, with a
substantially delayed recovery time and significant potential for permanent, significant
damage. Indeed, there is considerable doubt whether the Company would survive this
process.

To assess the risks and benefits of each strategy, the Company must weigh the potential
additional ―cleansing‖ or liability reducing benefits of each strategy against the ―revenue erosion‖
impact. Key simplifying assumptions in the analysis are as follows: (1) that global revenue
impact would be proportional to that experienced in the U.S.; (2) that DIP financing, which the
Company believes would not be available today in sufficient size through traditional means,
would be provided by the U.S. Treasury; and (3) that the Company under a bankruptcy scenario
would request substantial and longer term U.S. Government backstop of warranty coverage, and
other customer protections, to address consumer concerns, particularly during the bankruptcy
court administration period (which would be helpful, but would not address resale value,
competitive threats and other lingering customer concerns).

The remainder of this Appendix discusses the analysis in detail. Table A below summarizes the
Company's conclusions as to the potential results of each process.

Photo Credit: Bill Pugliano / Getty Images News

While it may not be a record number for some automakers, Audi AG has, for the first time, exceeded one million global sales in 2008. Thanks to the recent release of the new 2009 Audi A4 and the small 2009 Audi Q5 SUV, Audi was able to attain a total number of 1,003,400 sales globally, a 4.1 percent increase over last year’s 964,151 sales. December 2008 sales jumped 17.4 percent (82,800) over the previous year’s December sales (70,523).

We congratulate you, Audi in your sales success, but can we ask you to please bring back the Quattro Sport now that you’re a proven sales success? Thanks, we won’t forget it.

[via Fourtitude]

Here's the press release:

GM Reports 221,983 Deliveries in December; 2,980,688 Vehicles Sold in 2008

* December deliveries up 30 percent compared with October and up 43 percent compared with November
* Market share in December expected around 24 percent, up about 4 ppts compared with November, reflecting renewed APR rate support through GMAC
* Second half 2008 share up nearly 2 ppts compared with first half
* 2008 market share position anticipated to hold steady at just above 22 percent

DETROIT – General Motors dealers in the United States delivered 221,983 vehicles in December, down 31 percent compared with a year ago. However, total deliveries were 67,000 vehicles more than November’s result, up more than 43 percent month over month. GM December car sales of 87,506 were off 25 percent and truck sales of 134,477 were down 35 percent compared with a year ago.

For the year, GM delivered 2,980,688 vehicles while maintaining an expected market share just above 22 percent. Annual deliveries were down 23 percent compared with 2007, largely due to building weakness in the marketplace throughout the year spurred by economic headwinds such as the dramatic reduction in credit availability experienced in the fourth quarter, coupled with historically low levels of consumer confidence. Additionally, the American Axle strike and several supply disruptions impacted GM’s performance in the first half of the year.

“Given the ongoing challenges and the difficult market environment, we were very encouraged to see a volume rebound for GM in December compared with both October and November,” said Mark LaNeve, vice president, GM North America Vehicle Sales, Service and Marketing. “We are building more vehicles than ever that provide great value and Americans enjoy owning. That is why, for the year, we are seeing our market share holding steady at just above 22 percent. That’s 5 percentage points more and 760,000 vehicles more than our nearest competitor.

“Our outstanding cars, trucks and crossovers are enabling us to hold the leadership position in a very difficult market. Our Red Tag Event was well-received, and the ability to offer some 0% financing through our partner GMAC in the last week of the month also helped,” LaNeve added.

Despite the weak market in December, Chevrolet Malibu continued its solid performance with total sales up 43 percent compared with last December. For 2008, Malibu sales of more than 178,000 vehicles were up 39 percent, making it the highest percentage gainer in the top 20 vehicles sold in America with a volume increase compared with 2007. With its six-speed transmission and four-cylinder engine combination, the Malibu delivers an EPA-estimated 33 mpg highway – tops in the industry’s mid-car segment. The Malibu Hybrid also offers the lowest-priced hybrid in the segment. Additionally, with 4,500 retail vehicles delivered, the Chevrolet Traverse crossover nearly doubled its retail volume compared with November.

“We’re really pleased about the strength of our Chevrolet brand, with the Malibu continuing to perform very well, and the Traverse crossover off to a strong start,” LaNeve added. “Also, with a harsh winter and lower gas prices, our trucks and SUVs are continuing to perform well in their segments. With GMAC now able to provide more financing capacity, and with all the exciting new car and crossover launches including the Cadillac CTS Sportwagon and SRX, Chevy Camaro and Equinox, and Buick LaCrosse in 2009, we are optimistic that with an overall market recovery we can begin to capitalize on the well-recognized product renaissance of all our brands.”

A total of 2,555 GM hybrid vehicles were delivered in the month. Hybrid sales included: 981 Chevrolet Tahoe, 442 GMC Yukon and 306 Cadillac Escalade 2-mode hybrid SUVs delivered. There were 454 Chevrolet Malibu, 34 Saturn Aura and 338 Vue hybrids sold in December. In 2008, GM sold a total of 14,439 hybrid vehicles.

GM inventories dropped compared with a year ago. In December, only about 872,000 vehicles were in stock, down about 36,000 vehicles (or 4 percent) compared with last year. There were about 397,000 cars and 475,000 trucks (including crossovers) in inventory at the end of December.

Certified Used Vehicles

December 2008 sales for all certified GM brands, including GM Certified Used Vehicles, Cadillac Certified Pre-Owned Vehicles, Saturn Certified Pre-Owned Vehicles, Saab Certified Pre-Owned Vehicles, and HUMMER Certified Pre-Owned Vehicles, were 43,070 vehicles, up 21 percent from December 2007.

GM Certified Used Vehicles, the industry’s top-selling certified brand, posted December sales of 37,632 vehicles, up 24 percent from December 2007. Saturn Certified Pre-Owned Vehicles sold 888 vehicles, down 24 percent. Cadillac Certified Pre-Owned Vehicles sold 3,740 vehicles, up 11 percent. Saab Certified Pre-Owned Vehicles sold 548 vehicles, up 14 percent, and HUMMER Certified Pre-Owned Vehicles sold 262 vehicles, up 85 percent.

Total 2008 sales for all certified GM brands were 485,279 vehicles, down 5 percent from 2007. Annual sales for GM Certified Used Vehicles were 422,114 vehicles, down 6 percent. Saturn Certified Pre-Owned Vehicles sold 11,573 vehicles in 2008, down 9 percent. Cadillac Certified Pre-Owned Vehicles finished 2008 with sales of 41,598 vehicles, up 7 percent from 2007, while Saab Certified Pre-Owned Vehicles posted sales of 7,705 vehicles, up 6 percent, and HUMMER Certified Pre-Owned Vehicles sold 2,289 vehicles, up 71 percent.

“December sales for certified GM programs were strong, with GM Certified Used Vehicles up 24 percent over last December, as shoppers continue to seek value and peace of mind in a challenging economy,” said LaNeve. “GM Certified finished 2008 as the sales leader among all manufacturer-certified pre-owned brands for the seventh consecutive year, and our Cadillac, Saab and HUMMER luxury certified brands each posted strong year-to-year sales increases.”

GM North America Reports December, 2008 Production; Q1 2009 Production Forecast at 420,000 Vehicles

In December, GM North America produced 249,000 vehicles (105,000 cars and 144,000 trucks). This is down 3,000 vehicles or 1 percent compared with December 2007 when the region produced 252,000 vehicles (71,000 cars and 181,000 trucks). (Production totals include joint venture production of 10,000 vehicles in December 2008 and 15,000 vehicles in December 2007.)

GM North America built 823,000 vehicles (371,000 cars and 452,000 trucks) in the fourth-quarter of 2008. This is down 219,000 vehicles or 21 percent compared to fourth-quarter of 2007 when the region produced 1.042 million vehicles (358,000 cars and 684,000 trucks). Additionally, the region’s 2009 first-quarter production forecast is now 420,000 vehicles (143,000 cars and 277,000 trucks),which is down about 53 percent compared with a year ago, and about 180,000 fewer than the previous forecast. GM North America built 885,000 vehicles (360,000 cars and 525,000 trucks) in the first-quarter of 2008. First quarter 2008 production was reduced nearly 100,000 vehicles due to the strike at American Axle.

General Motors Corp. (NYSE: GM), the world’s largest automaker, has been the annual global industry sales leader for 77 years. Founded in 1908, GM today employs about 252,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 34 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM’s OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com.

Note: In this press release and related comments by General Motors management, we use words like "expect," "anticipate," "estimate," "forecast," "objective," "plan," "goal" and similar expressions to identify forward-looking statements, representing our current judgment about possible future events. We believe these judgments are reasonable, but actual results may differ materially due to a variety of important factors. Among other items, such factors might include: market acceptance of our products; shortages of and price increases for fuel; significant changes in the competitive environment and the effect of competition on our markets, including on our pricing policies; our ability to maintain adequate liquidity and financing sources and an appropriate level of debt; and changes in general economic conditions. GM’s most recent annual report on Form 10-K and quarterly report on Form 10-Q provide information about these factors, which may be revised or supplemented in future reports to the SEC on Form 10-Q or 8-K.

# # #

Auburn Hills, Mich., Aug 1, 2008 - Chrysler LLC today reported total July 2008 U.S. sales of 98,109 units, which is 29 percent below the same period last year. Total July sales reflect a continued contraction of the market of pickup trucks and SUV sales and reductions in fleet sales. The company's recently completed 'Let's Refuel America $2.99 Gas Guarantee' promotion boosted showroom traffic and helped sales of Chrysler's newest highly fuel-efficient vehicles throughout the three-month program period. All sales figures are reported as unadjusted.

"We are writing a new chapter in the auto industry story as customers, dealers and companies adjust to a changing environment," Jim Press, Chrysler LLC Vice Chairman and President, said. "There are many changes taking place that give us at the new Chrysler cause for optimism. In the short term, our 2009 model year vehicles with value packages will soon be arriving in dealerships, and our August incentive packages are the best deals of the year, helping to make owning as affordable as leasing. Within the product lineup, our leadership in minivans is well-timed as consumers look for fuel-efficient alternatives to larger SUVs. Two new fuel-saving hybrid SUVs, the Dodge Durango and Chrysler Aspen will soon be hitting the streets. The Dodge Journey and Jeep® Patriot are gaining more customers on the appeal of fuel efficiency and affordability. And the success of cars like the Dodge Avenger, Charger and Challenger shows that customers still want their cars to stand out from the crowd. Lastly, this fall we come to market with our best new pickup truck ever — the 2009 Dodge Ram."

July Highlights
The Chrysler Town & Country posted a 24 percent increase with 8,070 sales versus July 2007 sales of 6,513 units. With room for seven passengers, and the industry-exclusive Swivel 'n Go™ seating system, the Chrysler Town & Country could be considered as a fuel-efficient alternative to a full-sized SUV. Town & Country sales in July helped drive total minivan sales up 5 percent. Total long-wheel-base minivan retail sales increased 21 percent in July.

The Jeep Patriot continues to gain traction in the market, offering excellent fuel economy, interior flexibility and utility at a great value. Total sales of 3,451 were up 4 percent versus last year due to consumer interest in the company's most fuel-efficient vehicles. Additionally, Jeep Patriot 2008 year-to-date sales increased 119 percent, with 40,135 total sales when compared with July 2007 year-to-date sales of 18,286 units.

Response to sales promotions of the Dodge Ram helped lesson the impact of slow pickup truck demand. Dodge Ram pickup sales were down 27 percent (21,328 units) versus 2007 sales of 29,312, but sales increased 32 percent when compared with June 2008 sales of 16,149 units.

The Dodge Avenger sedan continued with good performance with 4,318 units sold, up 2 percent when compared with July 2007 sales of 4,213.

The highly anticipated all-new Dodge Challenger SRT8® hit the streets in July with excitement and solid sales results (2,895 units sold). The return of the iconic Dodge Challenger combines unmistakable design cues reminiscent of the original Challenger with world-class performance making it the hottest vehicle on the streets this summer. In total, 3,990 Dodge Challengers have been delivered to customers.

The Company finished the month with 409,331 units of inventory, or a 108-day supply. As part of a planned reduction in manufacturing and capacity, inventory is down 12 percent compared with July 2007 when it totaled 464,875 units.

About Chrysler LLC
Chrysler LLC, headquartered in Auburn Hills, Mich., produces Chrysler, Jeep, Dodge and Mopar® brand vehicles and products. Total sales worldwide in 2007 were 2.68 million vehicles. Sales outside of North America were the highest in a decade with an increase of 15 percent from 2006. The Company's product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler and Dodge Charger.

Fit sets another all-time sales record; Honda car sales rise 6.7% for July record

TORRANCE, Calif., Aug. 1 /PRNewswire/ — American Honda Motor Co., Inc. posted July total vehicle sales of 138,744, a daily-selling-rate basis* decline of 9.2 percent compared to July 2007 results.

Honda Division posted July sales of 125,916, a decline of 8.2 percent versus July 2007. The Fit sold an all-time record of 12,266, up 78.5 percent. Civic Hybrid broke its previous July record, set in 2006, with sales up 27.4 percent to 3,440, while the Accord increased 2.8 percent to 41,382.

"The uncertainties in the market have been quite profound in the past few weeks," said Dick Colliver, executive vice president of sales for American Honda. "We are adjusting our production to meet the rapidly changing needs of buyers and are confident these changes will provide the needed inventory as we move forward."

Honda total car sales of 82,976 increased by 6.7 percent to achieve a new July record. Honda light truck sales saw a decrease of 27.8 percent to 42,940.

The Acura Division posted sales of 12,828, a decrease of 17.7 percent* compared to July 2007. The division's all-new TSX continues to perform well with July sales up 15.9 percent to 3,474.

*The daily selling rate is calculated with 26 days for July 2008 and
24 days for 2007. All percentages reflect the daily selling rate.

August 1, 2008 - Torrance, CA - Toyota Motor Sales (TMS), U.S.A., Inc., today reported July sales of 197,424 vehicles, a decrease of 18.7 percent from last July, on a daily selling rate basis.

The Toyota Division posted July sales of 175,242 units, a decrease of 17.9 percent from last July. The Lexus Division reported July sales of 22,182 units, a decrease of 24.6 percent from the year-ago month.

Toyota Division
Toyota Division passenger cars recorded July sales of 114,880 units, down 5.4 percent from the same period last year. Passenger-car sales were led by Camry and Camry Hybrid, which posted combined sales of 42,131 units. Camry Hybrid reported July sales of 2,645 units. Corolla recorded sales of 34,438 units for the month, up seven percent over July 2007. With limited availability, the Prius mid-size gas-electric hybrid posted July sales of 14,785 units. Yaris reported July sales of 8,620 units.

"Having the industry's most fuel-efficient lineup is of value to us so long as we have the right product mix in our showrooms," said TMS President Jim Lentz. "That's why we're accelerating production of 4-cylinder models and quickly responding to market conditions with repurposed U.S. plants and plans for a U.S.-built Prius."

Toyota Division light trucks recorded July sales of 60,362 units, down 34.3 percent from July 2007. Light truck sales were led by the Tundra full-size pickup with July sales of 13,413 units. The Tacoma mid-size pickup reported sales of 11,662 units for the month. Highlander and Highlander Hybrid posted combined sales of 6,763 units in July. The Highlander Hybrid gas-electric mid-size SUV reported July sales of 1,371 units, up five percent over last July. Sequoia posted sales of 2,823 units for the month, up 50.4 percent over the same period last year.

Scion posted July sales of 11,906 units. The xB urban utility vehicle led the way with July sales of 5,081 units. The tC sports coupe posted July sales of 4,787 units. The xD reported sales of 2,038 units for the month.

Lexus Division
Lexus passenger cars reported July sales of 13,219 units, a decrease of 27.2 percent from July 2007. Passenger-car sales were led by the ES entry luxury sedan with July sales of 5,563 units. The IS entry luxury sport sedan reported combined sales of 4,750 units. The LS flagship luxury sedan reported combined sales of 1,466 units. The GS luxury sport sedan reported combined July sales of 1,297 units.

Lexus Division light trucks recorded July sales of 8,963 units, down 20.3 percent from the year-ago month. Lexus sales were led by the RX luxury utility vehicle, which posted combined July sales of 7,101 units. The RX 400h hybrid luxury utility vehicle reported July sales of 1,439 units. The LX 570 reported sales of 843 units, an increase of 277.7 percent versus the same period last year.

TMS Hybrids
TMS calendar-year-to-date hybrid sales totaled 165,522 units. TMS posted July sales of 20,363 hybrid vehicles. Toyota Division recorded sales of 18,801 hybrids for the month. Lexus Division reported July sales of 1,562 hybrids.

There were 26 selling days this month, as compared to 24 selling days last July.

FORD FOCUS CONTINUES TO SURPRISE, OUTPACE SEGMENT

* Ford Focus sales were up 16 percent in July and 26 percent year-to-date.
* Total car sales up 8 percent.
* Consistent with industry trends, crossover sales in July were down 8 percent, sport utilities were down 54 percent, and trucks and vans were down 18 percent.
* Ford, Lincoln and Mercury sales totaled 156,406 in July, down 13 percent.

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DEARBORN, Mich., August 1, 2008 - Ford's redesigned Focus continues to surprise auto industry watchers and customers alike with strong sales, revenue growth, fuel economy and industry-first technology.

While Ford and industry sales experienced a double-digit sales decline in July, Ford Focus sales climbed 16 percent versus a year ago. Year-to-date, Focus sales were up 26 percent, compared with industry-wide small car growth of approximately 9 percent.

Focus has surprised in areas other than sales:

* Transaction prices - Year-to-date, Focus transaction prices have increased $750 per unit compared with a segment-average increase of $100. Customers are purchasing more equipment, including Ford SYNC, and higher series levels.
* Fuel Economy - In an independent test conducted by Edmunds.com called the Gas-Sipper Smackdown, Focus achieved 37.5 mpg on the highway. Focus has EPA highway fuel economy of 35 mpg - better than the smaller 2008 Honda Fit and 2009 Nissan Versa SL.
* Cool Technology - Focus was named one of Kelley Blue Book's 10 Coolest New Cars Under $18,000 based on its safety, fuel economy, interior size, comfort, technology, fun-to-drive and the "decidedly subjective coolness factor."

"Focus continues to surprise and delight customers throughout the country, but the bombshell is in Texas, where Focus retail sales have almost doubled," said Jim Farley, Ford, group vice president, Marketing and Communications. "If we can increase small car sales in Texas, we can increase them anywhere." Year-to-date, Focus retail sales were up 91 percent in Texas and 46 percent nationwide.

Total Ford, Lincoln and Mercury car sales were up 8 percent compared with a year ago. Consistent with industry trends, crossover vehicles - which include Ford Escape, Edge and Flex - were down 8 percent. Sport utility vehicles - such as Ford Explorer and Expedition - were down 54 percent, and trucks and vans - including Ford F-Series and Econoline - were down 18 percent.

Overall, Ford, Lincoln and Mercury vehicle sales totaled 156,406 in July, down 13 percent versus a year ago; year-to-date sales totaled 1.265 million, also down 14 percent. Ford estimates industry-wide sales were down 11 percent year-to-date.

"We expect the second half of 2008 will be more challenging than the first half as economic and credit conditions weaken," said Farley.

Ford's full-year industry sales forecast is a range from 14.0 - 14.5 million vehicles (including medium and heavy trucks). The first half sales rate was approximately 15 million.
Note: The sales data included in this release and the accompanying tables are based largely on data reported by dealers representing their sales to retail and fleet customers.

About Ford Motor Company
Ford Motor Company, a global automotive industry leader based in Dearborn, Mich., manufactures or distributes automobiles across six continents. With about 229,000 employees and about 90 plants worldwide, the company's core and affiliated automotive brands include Ford, Lincoln, Mercury, Volvo and Mazda. The company provides financial services through Ford Motor Credit Company. For more information regarding Ford's products, please visit our website at www.ford.com.

Jalopnik Snap Judgement: As with GM and especially Ford, Honda is buoyed by sales in other Asian markets and South America. The company also has motorcycle sales to lean on. But the biggest difference, though, is something we've mentioned earlier that Ford and GM both need. That's right, it all comes down to product. Honda has a strong portfolio of smaller, affordable and fuel-efficient cars in the Fit and Civic — and they don't have to significantly realign their mix or offer crazy incentives to maximize profitability. [Source: Honda Motor Company, MarketWatch]

American Honda
Honda was the sparkling bright light of hope amidst today's reports, announcing year-over-year sales figures which bucked the greater trend with a gain of 13.8%. The increases at Honda were led by a record breaking month for both the Honda Fit and the Honda Civic. Sales at the Acura division weren't so great, but when you're selling the brand for fuel efficient small cars during painful fuel times, that kind of thing gets overshadowed.

Daimler AG
There's some kind of saying about how the rich get richer and the poor get... something, but it escapes our mind at the moment. We're watching Daimler's caviar-infused Kobe veal just now arriving. We're not the least bit surprised in the Daimler announcement of sales improvements around 12.9%, the idea of driving anything less than a Mercedes in these trying times is simply unnerving.

Subaru Motors
Maybe all those years of pitching responsible transportation and safety-inspired handling have netted benefits, as Subaru has reported a 5.3% increase in sales for June. Could also be the the new Subaru Forester crossover scores major points with the "I want an SUV but I'd love good fuel economy" crowd. Whatever the case, the Fuji Heavy industries subsidiary is making gains in a tough market.

Volkswagen AG
VW must be doing something right, as they've managed to eke out a 0.3% sales increase where many others have not. Perhaps the concept of small, premium, sporty, fuel efficient cars isn't so far-fetched after all. Listen to us, we sound like smug Europeans.

BMW Group
It just goes to show that questionable styling, thirsty engines, and complex controls don't always a luxe brand make. BMW Group reported an unfortunate sales loss of 11% for June. Where the compact Mini brand saw a 24.8% bump in demand, the BMW brand dropped by 17% — we're betting those numbers pick up once the BMW X6 starts hitting — or rather bypassing showroom floors — as all of them are spoken for already.

Toyota
Not all is well within the super number one best awesome brand from the land of the rising sun. June saw an overall decline of 11.5%*. Breaking that down — the Lexus Division was smacked pretty good with a 21.1% decline and the Toyota Division fell 10.3% relative to last June. Supply problems with what should be the all-star Prius forced a 25% sales drop for the headlining hybrid. What about them trucks though? Toyota truck sales were down a whopping 31.1% which, in our opinion bodes very poorly for the new Toyota Tundra. Consider the Ford F-150's sales flagged by only 5% more, and yet the Toyota is much newer with a new F-Series just over a pushed-back-by-two-months horizon. *Toyota reported figures adjusted for daily sales rate

Nissan North America
Apparently Nissan is no slouch in losing sales either. Carlos Ghosn's golden brand saw a decline of 17.7% this June. Sure, it's not as good as either Toyota or Honda, but it sure as hell isn't as bad as the traditional big three. As expected, sales of the company's small cars came on strong last month, but Nissan's trucks and SUVs took a solid faceplant. Nissan still has that all-electric wonder-car planned, so we're sure the greenwashing campaign will begin immediately.

General Motors
The General isn't doing too bad compared to its cross-town rivals, but losing 18.5% compared to last years' June still stings. Sure, the Hummer brand lost an eye-watering 60%, but other vehicles made up for most of it, like the shockingly popular Chevy Malibu, and even the Cobalt is seeing renewed demand. And don't even talk to them about trucks and SUVs. But that's not to say GM is on solid ground, especially considering recent announcements from management on idling of plants.

Porsche AG
Perhaps it's the pending release of a freshened Porsche 911, or the overall stagnation of the brand, or that Porsche sales are heavily weighted on the high selling, and uber-thirsty Cayenne, but Porsche announced a surprising drop of 18.9% in sales. Maybe even luxury buyers are tightening their belts when it comes to weekend toys.

Ford Motor Company
Ford did not have a very good month. With declines pegged at 28% and sales of the popular F-150 down a staggering 36% for the month of June, the big blue oval is taking one to the jaw on the sales front. It's worth a note though that the yucky-looking but fuel-efficient new Ford Focus is positively flying off the lots. Now if only they could get that new Ford Fiesta here on the double.

Chrysler LLC
Chrylser LLC has posted a mind numbing 36% decline for June, and with numbers like that, and the decision to shutter the St. Louis minivan plant, Cerberus has got to be patting themselves on the back right about now. June was so bad, we heard the Chrysler dealers actually had to resort to brushing the spider webs off the doors during their lunch breaks. Despite its $2.99 gas deal, some of the SUV offerings were complete non-sellers, for instance: Jeep Commander — down 68% to 1,961 vehicles; Dodge Durango down 67% to 1,723 vehicles; Chrysler Aspen down 49% to 944 vehicles.

Mitsubishi Cars
And today's winner is Mitsubishi, posting a breathtaking 42.4% decline in sales compared to last June. Here is where we insert jokes about lingering Chrysler interior quality, and the smashing success of the new Mitsubishi design language, but that just seems mean. Let's be serious for a second though, has anyone seen the interior of the Mitsubishi Endeavor? Oh wait, that answer is no.

First off, there was an overall drop in vehicle sales in the United States — that's obviously going to affect sales of the largest fuel-suckers first, but the current economic situation affects anyone looking to buy right now, even in the hybrid marketplace. But the biggest factor isn't the issue of demand, it's supply. Toyota decided to only create about 175,000 Prii a year and is sticking to that number — mostly because their suppliers don't have the ability to quickly add capacity. That means despite the increase in demand, there just aren't any more to buy. The Camry Hybrid's seen a sales drop as well, because of this same supplier issue.

Comically, the biggest winner for the month were Saturn's hybrids — the Vue crossover and Auru sedan. Aura sales were up an astonishing 800%! Obviously since the Vue is a larger vehicle, it only saw a month-to-month increase of 750%. Unfortunately, due to some of their own serious supply issues, like battery leakage problems, 800% only translates to total monthly sales of 36 and 750% only translates to another limp volume number. Again, a supply issue.

Other hybrids also did reasonably well, including a 100.6% month-over-month increase in sales for the Nissan Altima Hybrid and a 3.5% year-over-year increase for the Civic Hybrid. But given that hybrid sales in the US for 2008 total only 155,958 vehicles, minor fluctuations make a big impact on monthly results. Overall, although hybrid sales are up 4.5% compared to the first five months of 2007, if neither Toyota or GM are able to get their supplier issues licked, we're not expecting it to start raining hybrids anytime soon. [WSJ, HybridCars.com]