Ford extends US sales losing streak, Nissan soars

DETROIT - Ford Motor Co. on Tuesday reported its 11th consecutive month of weaker US vehicle sales as high petrol prices, and ebbing demand for its big SUVs, caused it to lose traction again to foreign competitors.

The decline, and an expected drop in April sales at General Motors Corp., spelled more trouble for Detroit. The two largest US automakers face mounting financial hardships as they lose more US market share -- their industrial lifeblood -- to fast-growing Asian rivals.

By contrast, Nissan Motor Co. Ltd. said its US sales jumped 27 per cent in April. And analysts said Toyota Motor Corp., the richest automaker on the planet, was expected to report another month of double-digit sales gains as well.

Ford, the second-largest US automaker, said its US sales fell 5.1 per cent. All sales figures are adjusted for an extra selling day in April this year, and Ford's results exclude its foreign brands.

Sales of Ford's large sport utility vehicles fell sharply again in April, as record US petrol prices continued to take a toll on the company's most fuel-thirsty models.

Company officials have said repeatedly that higher prices at the petrol pump were hurting sales of its traditional truck-based SUVs. Cheap loan offers and big rebates have done little to reverse that trend.

Despite the disappointing results at Ford, vehicle sales across the industry were expected to strengthen to a seasonally adjusted annual rate of between 16.7 million and 17.1 million units, up from a rate of 16.6 million in April last year.

Recent surveys show that US consumers have turned a bit more glum about the future as they struggled with high petrol prices and sluggish wage growth. But spending on cars and trucks, which account for about one-fifth of US retail sales, has rebounded from a soft patch at the start of the year.

The Chrysler side of DaimlerChrysler, which has played down the impact of higher fuel prices, said its April sales rose 5 per cent. It was the 13th straight month of year-over-year sales gains for Chrysler.

Other automakers are due to report April sales later on Tuesday.

Paul Ballew, GM's chief of industry analysis and sales, told Reuters on Friday that April US sales were "down modestly" at the world's largest automaker. But analysts said GM's sales fell by as much as 9 per cent, due partly to a poor performance by its aging lineup of truck-based SUVs.

Nissan's North America sales chief Jed Connelly told Reuters its strong performance was driven in part by record sales of its Altima mid-sized sedan.

Underscoring the importance of the Japanese automaker, a relatively new rival for GM and Ford, President Bush was due to visit a sprawling vehicle assembly plant it operates in Canton, Mississippi, on Tuesday afternoon.

The visit comes as Bush is pushing his plan to shore up Social Security by reducing promised benefits for all but low-income retirees.

- REUTERS