DETROIT -- General Motors Corp., the world's largest automaker, said yesterday that its U.S. sales of cars and light trucks rose 18 percent in February, beating estimates and helping push industrywide sales up 13 percent to a record for the month.
GM's results included gains of 20 percent for cars and 15 percent for light trucks.
The report from the largest U.S. automaker came after reports of February increases of 8.8 percent for Ford Motor Co. and 7.7 percent for DaimlerChrysler AG, and 19 percent gains for Toyota Motor Corp. and Honda Motor Co.
Cars and light trucks sold at an annual rate of 17 million industrywide, the highest ever for a February, aided by low unemployment and rising consumer confidence.
The momentum hasn't slowed since 1998, the second-best sales year ever, and analysts and executives warned that the bounty can't last forever.
"This industry annual rate is blowing out everyone's expectations," said Donald DeVeaux, market analysis director at GM, which was helped by higher truck production, demand for redesigned cars and employee discounts.
George Magliano, an analyst with the WEFA Group in New York, said the payback might come in two months, and show up in car sales that decline and truck demand that levels off.
GM's shares slipped 18.75 cents to close at $82.875 as the Dow Jones industrial average fell 21.735 points to 9,275.88.
February was the second time in three months that the industry ran at an annual pace of 17 million or more, something that consulting firm Autodata Corp. said likely was a first.
The industry is capitalizing on a robust U.S. economy, which is on track to begin a ninth year of expansion next month and set an all-time record for longevity a year from now.
GM beat the average analyst estimate of a 6.4 percent increase for North America-built cars and light trucks. Sales of pickups, sport utility vehicles and minivans rose 15 percent to 177,421, while car sales increased 20 percent to 204,840 from the year-earlier month. Including imports and heavy trucks, total sales rose 17 percent to 389,049.
The comparison was helped by a weak sales month in February 1998, which last spring prompted GM to offer coupons worth up to $1,000 to some buyers. That stimulated sales for the entire industry as other makers followed suit.
GM factories were better able to keep up with demand for the Chevrolet Silverado and GMC Sierra full-size pickups, sales of which rose 18 percent. The trucks were introduced in the fall, but GM had struggled to build them fast enough to meet demand.
Sales of midsize car models such as the Buick Regal rose 44 percent, while Buick Century rose 32 percent. Pontiac Grand Am, which was introduced in the summer with a new design, more than doubled its sales from the year-earlier month.
The automaker said a $1,000 employee rebate program revived in the last week of February added sales of about 8,000 units. "It was a big factor, because about 12 percent of their sales are to employees or their families," said Nicholas Lobaccaro, analyst with Merrill Lynch & Co.
Cadillac continued to struggle against competition from Mercedes-Benz, Bayerische Motoren Werke AG and Toyota's Lexus. Sales for GM's luxury division fell 9 percent.
BMW of North America said yesterday that its sales, including its Land Rover unit, rose to 13,358, up 22 percent from February 1998. American Isuzu Motors Inc. said its sales last month rose 32 percent to 7,220 vehicles.
Pub Date: 3/04/99