GM, Ford to Cut Production as Sales Weaken

The nation’s two largest automakers said they would reduce production in the first quarter of 2005 after reporting weak November sales. Toyota Motor Corp. and Nissan Motor Co., meanwhile, posted record sales for the month.

General Motors Corp. said Wednesday that its total vehicle sales fell 13.1% from November 2003, with a 17.1% decline in cars and a 10.3% decline in trucks. The company said it intended to cut vehicle production by 7.1% in the first quarter from a year ago.

The No. 2 domestic producer, Ford Motor Co., said sales fell 4.3% in November from the year before, its ninth monthly decline this year. Car sales fell 12.5%, and sales of pickups and SUVs were down 0.9%. Ford also announced that first-quarter North American production would be cut 7.7%.

Sales at the smallest of Detroit’s Big Three, DaimlerChrysler’s Chrysler Group, rose 8.9% -- 17.5% for cars and 6.8% for trucks. It was the eighth consecutive monthly increase, aided by the buzz from its distinctive Chrysler 300 sedan.

For Nissan, trucks drove November’s overall increase of 31%. Sales of pickups and SUVs were up 58.7%, and cars rose 10%.

Toyota’s American division, meanwhile, did best with cars. With the Camry holding its place as the country’s bestselling passenger car and sales of the Prius hybrid continuing to climb, Toyota sold 19.2% more cars last month than in November 2003. Truck sales fell 1.4%, giving Toyota an overall increase of 8.8%.

Honda Motor Co. said its sales rose 3.1%, boosted by strong demand for its Acura models and Honda trucks. Truck sales increased 10.2%, and car sales fell 2%.

“The domestics can’t compete on just price,” Argus Research analyst Kevin Tynan said of GM and Ford. Asian automakers attract buyers because customers are seeking “the best value and quality for your dollar.”