Auto sales may hit goals by year-end

By Earle Eldridge
USA Today

November auto sales fell 12.8 percent from a year ago. But they were better than October's sales, and automakers are predicting December will be better yet.

For consumers, that could mean even more bargains as automakers try to meet year-end sales goals.

The annual sales pace in November was 16 million, up from 15.5 million in October. Automakers predict a sales pace of at least 16 million will continue through the first quarter of 2003. Automakers sold 17.2 million cars and trucks last year.

General Motors started the incentive war after the Sept. 11 attacks with no-interest financing and hefty cash rebates. Other automakers followed, and the deals have become increasingly aggressive.

Likely to make December one of the best bargain months for car shoppers: the high number of vehicles at or on the way to dealerships. Automakers typically like to have a 65-day supply of vehicles — the number of days dealers could sell cars at the current pace with no more factory deliveries. At the end of November, GM's supply was 75 days; Ford Motor, 79 days; and Chrysler, 88 days.

Adding sales pressure is that Detroit-made brands from GM, Ford and Chrysler took 58.8 percent of the market in November, slipping below the psychologically significant 60 percent mark.

The European luxury brands provided the exception to falling sales from a year ago. Mercedes-Benz reported its best November ever, with sales up 3.4 percent. BMW was up 10.8 percent; Audi, 9.8 percent; and Land Rover, 38.8 percent.