Nov 4, 2003 By John Porretto Ap Auto Writer 2 min read

DETROIT (AP) – The world’s two largest automakers said their U.S. sales declined more than predicted last month as a late summer sales frenzy caused more of an industry backlash than expected. At No. 1 General Motors Corp., overall sales fell 7.7 percent from a year ago, the company said Monday. Truck sales were off 8 percent, car sales nearly 7 percent.

No. 2 Ford Motor Co.’s domestic business fell nearly 3 percent as strong demand for its new F-150 pickup failed to offset a sharp decline in car sales.

“GM sales in October fell short of our objectives, in part due to a slight hangover from our very strong performance in the third quarter,” said John Smith, group vice president for GM vehicle sales, service and marketing.

Industrywide, October sales were expected to top last year’s sluggish levels, when a sputtering economy and fears of a war with Iraq hurt business. Sales last October fell nearly 30 percent from record highs in 2001.

But last month’s volume was forecast to be well below the levels of August and September, when the introduction of 2004 models and a barrage of incentives on ’03 models sparked a summer selling craze.

Sales of Ford, Lincoln and Mercury cars were off 9.3 percent last month compared with a year ago, while truck sales rose nearly 1 percent. Ford sold 68,828 F-Series trucks in October.

12 percent more than a year ago. Ford’s F-Series pickup is the best-selling vehicle in the United States, and it accounts for about one-quarter of Ford’s sales.

The new F-150, beefier than the previous model, went on sale in September and is considered a vital part of the company’s turnaround bid.

“We’re extremely pleased with all aspects of the launch of the new F-150,” said Jim O’Connor, Ford’s group vice president for North American marketing, sales and service.

Despite October sales that were below predictions of some analysts, O’Connor said he is optimistic for prospects as the year winds down.

“The economy is sprinting, and consumer fundamentals remain favorable,” he said.

In afternoon trading on the New York Stock Exchange, Ford shares were up 9 cents to $12.22. GM shares were up 36 cents to $43.03.

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On the Net:

http://www.ford.com

http://www.gm.com