Clunkers boost Ford sales in Aug.; GM, Chrysler sales fall

ByABC News
September 1, 2009, 3:33 PM

DETROIT -- The popular cash-for-clunkers program boosted Ford Motor's U.S. sales in August 17.2% over last year, but shortages of smaller vehicles weighed on rivals Chrysler Group and General Motors.

The program, which ended on Aug. 24, drew hordes of buyers into quiet showrooms by offering up to $4,500 toward new, more fuel-efficient cars and trucks. The hefty rebates gave automakers and dealers a much-needed lift, spurring 690,114 new sales, many of them during August, at a taxpayer cost of $2.88 billion.

Other automakers are expected to release U.S. sales figures later Tuesday. Combined, the results are likely to mark the first year-over-year monthly sales gain since October 2007.

Two of Ford's vehicles the Focus and Escape were among the top selling cars under the clunkers program. Sales of the Focus rose 56% while those of the Escape crossover vehicle climbed 49%.

Meanwhile, low supplies of fuel-efficient vehicles at Chrysler kept the automaker from benefiting more from the clunkers program, whose rebates encouraged customers to buy gas sippers in exchange for guzzlers with gas mileage of 18 mpg or less.

Chrysler sales fell 15% to 93,222 units.

Going into August, five of Chrysler's most efficient vehicles were already at low inventory levels. Those vehicles the Dodge Caliber, the Chrysler Sebring, the Jeep Patriot, the Jeep Compass and the Dodge Avenger all qualified as cash-for-clunkers purchases.

To make up for the shortfalls, Chrysler is boosting production by 50,000 vehicles of most of its vehicles through the end of the year.

At General Motors, sales fell 20% to 245,550. GM said its inventory levels hit an all-time low of 379,000 during August.