Toyota Motor Corp.’s recalls and snowstorms across the U.S. may have slowed the rebound in auto sales in February, keeping some shoppers out of showrooms and dashing the industry’s hopes for bigger gains, Bloomberg reported.
Toyota’s deliveries probably fell 10 percent to drag the company to its lowest U.S. market share since 2005, researcher Edmunds.com said. General Motors Co. and Ford Motor Co. likely posted increases of 20 percent and 33 percent, based on the average of 5 analysts’ estimates compiled by Bloomberg.
February provided automakers with easy comparisons from a year earlier, when the recession was still deepening. The results being reported tomorrow may be weak enough to raise questions about the U.S. market’s health after a streak of sales increases that began in November.
“While February sales have improved from a year ago, the pace of the recovery has hit a speed bump,” said Jeff Schuster, forecasting chief at J.D. Power & Associates in Troy, Michigan. “Because of the Toyota recall, buyers are sitting on the sidelines. The severe storms in February also had some impact.”
The seasonally adjusted annual sales rate for cars and light trucks may have reached 10.3 million, the average of 8 estimates compiled by Bloomberg. That would be a fourth straight gain from a year earlier. The February 2009 pace was 9.1 million, the lowest since 1981.
“Based on sales of recent months, February sales should have been higher,” said Jessica Caldwell, director of industry analysis for Santa Monica, California-based Edmunds.com.
Of the seven largest automakers in the U.S., only Toyota and Chrysler Group LLC probably will post February sales declines, according to Edmunds.com and the analysts surveyed by Bloomberg. GM, Ford, Honda Motor Co., Nissan Motor Co. and Hyundai Motor Co. will have increases.
A monthly drop for Toyota would be the second in a row for the Toyota City, Japan-based automaker, which recalled about 8 million vehicles globally for defects linked to unintended acceleration and suspended U.S. sales of eight models, including Camry and Corolla sedans, starting Jan. 26. Dealers were able to resume the sales once repairs are made.
Edmunds.com estimated that the 10 percent slide in Toyota’s U.S. sales would cut its market share to 12.6 percent. TrueCar.com, another Santa Monica-based researcher, projected a 27 percent drop in deliveries by the world’s largest automaker.
