From Detroit Free Press
Sales of new cars and trucks have been falling in January, especially for General Motors Corp. and Ford Motor Co., automotive dealership data show.
Retail sales of new vehicles were down 11 percent in the first half of the month, compared to the same period a year ago, according to a report from the Power Information Network, a subsidiary of J.D. Power & Associates.
Automakers will report their monthly sales results on Feb. 1.
The preliminary findings from the Power Information Network, also known as PIN, are based on retail sales data from more than 10,000 automotive dealership franchises in North America.
It does not include fleet sales to government and rental companies.
When those sales are included, the brokerage firm Merrill Lynch predicts sales for the entire industry will be down 2 percent in January compared to a year ago.
GM and Ford are expected to fare worse than the market, both Merrill Lynch and PIN predict. That could be more bad news for the two domestic automakers, which have announced plans to lay off about 30,000 workers and close more than a dozen plants apiece.
Retail sales are down 28 percent at GM and 25 percent at Ford through the first 15 days of January, PIN reports. DaimlerChrysler, which has local operations in Auburn Hills, MI, is performing slightly better, with sales off 13 percent during the same period.
Merrill Lynch believes the month will end with retail and fleet sales off about 10 percent at GM, 5 percent at Ford and 3 percent at DaimlerChrysler.
The firm predicts U.S. market share in January will be 24.1 percent at GM, 18.2 percent at Ford and 14.9 percent at DaimlerChrysler. That would be down from a year ago, when market share was 26 percent at GM, 18.9 percent at Ford and 15.1 percent at DaimlerChrysler.
One explanation for the sales decline in January: Automakers have been easing off incentives, such as cash-back rebates and special interest rate programs.
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