Sharp price increases, caused by the dropping of incentives because of inventory shortages resulted in the Detroit Three becoming the Big Three in sales for the first time in years.
Toyota, Nissan and Honda – the Japanese Big Three – all saw U.S. sales plummet in May as a combination of their limited inventories because of the production disruptions from the Japan earthquake, and the decreased marketing activities that followed took a huge bite out of sales.
More sales declines are likely to follow in June, but sales executives – ever optimistic – said that now is the low point of the production disruptions. Inventories and sales will build during the summer.
All of the Detroit Three automakers – GM, Ford and Chrysler – clearly outsold the Japanese in May as a result of the marketplace chaos.
The largest Japanese automaker Toyota – also the most dependent on imports to the U.S. – saw decreases of 33% across its brands to 108,387 vehicles compared to a year ago. The Toyota Division posted May total sales of 96,082 units, down 32%.The Lexus Division reported total sales of 12,305 units, down 45% compared to the same period last year. Total light vehicle sales declined almost 4% for all makers on average during the month.
“We really had two different months in May,” said Bob Carter, Toyota Division group vice president and general manager, Toyota Motor Sales, U.S.A. “Early on, because of inventory concerns, we dialed back on our marketing programs and the sales pace slowed. By mid-May, however, the production outlook was rapidly improving and we were able to reinstate many of those programs.”
Nissan, the second largest Japanese automaker, fared somewhat better. Nissan North America reported May U.S. sales of 76,148 units versus 83,764 units a year earlier, a decrease of 9%. Nissan Division sales were down 7.8% for the month at 69,759 units. Sales of Infiniti vehicles decreased 21% from the prior year to 6,389 units.
Honda posted May sales of 90,773, a decrease of 16% the American sales division of the Japanese company announced today. Honda Division May 2011 sales were 81,773, a decrease of 16% versus May 2010. Acura Division posted May sales of 9,000 units, a decrease of 17% from the same period last year.
“May sales are on par with what we expected due to the lingering effects of parts and production shortages resulting from the devastating March 11 earthquake in Japan,” said John Mendel, executive vice president of sales for American Honda, in a statement since Honda does not offer press conferences on sales. “We are confident that sales will rebound as our North American plants reach 100% production capacity for most models in August,” Mendel said.
