Gas costs affect car sales

DETROIT — Rising gas prices had a mixed impact on U.S. auto sales in April, with some automakers reporting plummeting sales of trucks and sport utility vehicles while others appeared unaffected.

"There's something rolling around related to fuel economy," George Pipas, Ford Motor Co.'s U.S. sales analysis manager, said Tuesday, reflecting the wait-and-see attitude many automakers are taking toward fuel prices.

Industrywide, sales slipped 4 percent in April compared to the same month a year ago, when they got a boost from a heavy dose of incentives. The seasonally adjusted sales rate for April, which shows what total sales would be if they remained at the same rate for the entire year, was 16.7 million vehicles, according to Autodata Corp. Automakers sold 17 million vehicles in 2005.

While General Motors Corp. hit pay dirt with its new lineup of SUVs — GMC Yukon sales climbed 36 percent — Ford struggled with a 15 percent decline in SUV and truck sales compared with April 2005. Hyundai Motor Co.'s truck and SUV sales fell 27 percent, but Toyota Motor Corp. and Honda Motor Co. both reported that their light truck sales outpaced car sales.

"In a tough competitive market like this, the victories are model by model, not typically across the board for any particular maker," said Paul Taylor, chief economist for the National Automobile Dealers Association. Taylor added that the impact of gas prices seems to be slight so far and that consumers seem to be adjusting and are continuing to buy the size of vehicle that best meets their needs.

GM said its April sales fell 11 percent from April 2005, primarily due to a 21 percent decrease in car sales as the company pulled away from the rental car business. GM's truck and SUV sales were down 2 percent.

Paul Ballew, GM's executive director of market and industry analysis, said sales to rental and corporate fleets will continue to decline throughout the year as part of the automaker's restructuring plan. Fleet sales bring in lower margins for automakers and can hurt vehicles' resale values. Fleet made up 30 percent of GM's sales in April, down from 32 percent a year ago, Ballew said.

Ford's April sales fell 7 percent from a year ago, dragged down by a 15 percent drop in sales of trucks and SUVs as consumers turned to more fuel-efficient cars and crossovers. Sales of Ford, Lincoln and Mercury cars rose nearly 11 percent, and the company said sales of its car-based crossover utility vehicles were up 8 percent.