Last Updated: March 02. 2010 4:37PM

Ford sales jump 43% as Big 3 gains; Toyota slips, starts ad blitz

Robert Snell and Alisa Priddle / The Detroit News

Ford Motor Co. outsold General Motors Co. in February, picking off customers from recall-plagued Toyota Motor Corp. It was the first time in 40 years that Ford sales surpassed GM -- except for a blip in 1998, when GM was on strike.

All of the Detroit Three automakers posted sales gains in February over a year ago. Toyota's sales slid 8.7 percent from a year ago and the automaker launched what it calls an "unprecedented" marketing and incentive campaign for March that will be reflected in new ads that start running today.

Toyota will offer zero percent financing for five years or an attractive lease rate on 80 percent of the vehicles it sells, including all the core vehicles in the lineup. And returning Toyota customers will receive two years of free maintenance for their new vehicle. the deals end April 5.

Ford Motor Co. sales jumped 43 percent in February compared with a year ago, joining General Motors Co. in posting strong results as GM sales rose 12 percent. Chrysler Group LLC eked out a 0.47 percent gain from February, 2009.

The other big gainer for the month was Nissan Motor Co., with a 29 percent increase. The Nissan Division reported a sales rise of 32 percent with a pair of small vehicles, the Versa subcompact car and Rogue compact crossover, achieving record sales in February. The Infiniti luxury brand was up almost 11 percent.

Honda Motor Co., which has been gaining sales in the wake of Toyota's recall problems, posted a sales increase of 12.7 percent in February compared with the same month in 2009.

Including Volvo, Ford sold 142,285 vehicles for the month compared to GM's 141,951.

Ford's increase was across the board: Car sales were up 54 percent, sport utility vehicles 39 percent and trucks 36 percent. Among brands, Ford sales were up 46 percent, Lincoln sales 19 percent, and Mercury sales 24 percent.

The Dearborn-based automaker estimates its February U.S. total market share was 17 percent -- up 3 percentage points versus a year ago.

Ford said it will increase production in the second quarter of 2010. It plans to produce 595,000 vehicles, up 144,000 vehicles (32 percent) compared with the same period in 2009. The automaker built 570,000 vehicles in the first quarter.

"The strength of our new products and Ford's leadership in quality, fuel efficiency, safety, smart design and value are resonating with customers," said Ken Czubay, Ford vice president, U.S. marketing sales and service.

"The good news is we have even more new products and fuel-efficient powertrains coming this year, and we expect our progress to continue."

GM said its rise was fueled by stronger fleet, crossover and passenger car sales.

But expected gains by other automakers are not likely to lift industrywide sales enough to recover from the snowstorms and recall problems confronting Toyota, analysts said.

"Even substantial increases by other top players in the industry, like General Motors and Ford, are unlikely to boost the seasonally adjusted sales rate, a key indicator of the industry's momentum," said Jack Nerad, executive editorial director and executive market analyst for consumer guide Kelley Blue Book's kbb.com.

"Some consumers, especially Toyota loyalists, are simply waiting out the market right now."

GM would not provide figures on how much its sales increased because of Toyota's woes.

"We got what we thought would be our fair share," Mike DiGiovanni, GM's executive director of global market and industry analysis.

Sales of GM's four core brands -- Chevrolet, Buick, GMC and Cadillac -- rose 32 percent, while sales of castoff brands Saturn, Hummer, Pontiac and Saab fell 86.1 percent.

"Although we've been operating as a new company with four brands for just seven months, our February results demonstrate that our long-term plan is already paying dividends," said Susan Docherty, GM's vice president of marketing.

It is the fifth straight month of year-over-year sales increases for GM.

Docherty said reopening a shuttered plant is not an option to alleviate a shortage of some vehicles and that GM plans on "leveraging our existing manufacturing footprint at this stage."

While GM non-fleet retail sales for the four core brands rose 7 percent, retail sales overall were down 9 percent when factoring in the castoff brands.

Sales of GM's crossovers -- Chevrolet Equinox, GMC Terrain and Cadillac SRX -- rose 198 percent compared to prior models.

In a change, GM announced sales at 9:45 a.m. instead of the traditional 1:45 p.m. -- a move aimed at gaining positive media exposure ahead of rival automakers.

"We have some good stories to tell and want to get ahead of things a little quicker in the day," GM spokesman Tom Henderson said.

Snowstorms that blanketed the northeast region of the country last month and elsewhere crimped sales, Docherty said.

Chevrolet posted double digit increases in other regions, but fell almost 17 percent in the northeast, she said.

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From The Detroit News: http://www.detnews.com/article/20100302/AUTO01/3020399/Ford-sales-jump-43--as-Big-3-gains--Toyota-slips--starts-ad-blitz#ixzz0h4I1ydxp