MercoPress. South Atlantic News Agency

Scrappage program boosts Ford, Toyota and Honda sales in the US

“Cash for clunkers” proved to be one of the fastest acting US stimulus plans

US car sales responded positively to the government's 3 billion US dollars “Cash for Clunkers” program, led by a 17% sales jump at Ford and higher sales from Japan auto makers Toyota and Honda. However General Motors, Chrysler and Nissan still reported lower sales.

The two largest Japanese auto makers, Toyota and Honda, reported single-digit increases as the “scrappage” program helped boost market share for some foreign auto companies. The Toyota Corolla, Honda Civic and Toyota Camry were the three most popular vehicles purchased under the program.

Toyota said Tuesday its vehicles accounted for 19% of sales within the program, saying “Cash for Clunkers” provided “tangible benefits” to the industry, as well as state and local economies.

Ford's gain was also helped by its trucks posting the first year-over-year sales increase in nearly three years. Meanwhile, Chrysler's 15% decline was in part due to a lack of inventory - most of the company's plants sat idle for almost three months as the auto maker dealt with its bankruptcy process.

“Cash for Clunkers,” ended late last month, weeks earlier than expected, amid higher-than-expected consumer interest. The program, launched in late July, proved to be one of the fastest-acting stimulus programs to come out of Washington since the recession began, but higher sales in July and August are expected to be followed by weak demand in September.

Mike DiGiovanni, GM's sales analyst, said he expects the annualized selling rate to fall back to 10.5 million for the year from the mid-14 million vehicle range. He added that the auto maker expects the selling rate to jump to between 11.5 million and 12 million in 2010.

Ford's light-vehicle sales were 181,826. GM reported 245,550 units sold, down 20%, as truck sales continued to slump, dropping 31%. Car sales declined 4.6%.

For Toyota, sales were up 6.4%, to 225,088, topping Ford's total for a second straight month after three months of falling behind its US competitor. Total passenger car sales were up 20%, while light-truck sales dropped 15%.

Honda posted a 9.9% jump, to 161,439 - the company's second-best month in the US as car sales grew 23% but truck sales dropped 9.3%. Nissan reported sales dropped 2.9% to 105,312, with car sales jumping 38% and truck sales slumping 48%.

Chrysler sales dropped 15% to 93,222 but rose 5% from July despite rapidly shrinking inventories.