By Kalea Hall
Sept 24 (Reuters) – General Motors and Ford Motor have lost more market share in the United States than any other automakers so far this year as buyers prioritize fuel efficiency amid high gas prices, an industry forecast shows.
Ford’s vehicle sales are expected to drop 8.8% through the first three quarters of the year, according to a forecast released Thursday from Cox Automotive. That would knock Ford’s market share down nearly a full percentage point, to 12.5%.
GM’s US vehicle sales pace also is trailing the broader industry, expected to decline 6.2% year-to-date through September 30, Cox projects. The firm estimates GM will finish the quarter with a 16.7% market share, down from 17.4% a year earlier.
Those would be the two steepest market-share declines among 13 car companies tracked by Cox, according to its quarterly forecast.
Chrysler-parent Stellantis, the other one of the traditional three Detroit carmakers, is expected to gain market share through the third quarter. Still, the overall share of the three companies is expected to be at an all-time low of around 36%, Cox said.
Analysts say both GM and Ford are being hurt by a relative lack of fuel-efficient cars and SUVs, compared to rivals.
A GM spokesman declined to comment.
CAR BRANDS WITH HYBRIDS GAIN
GM dealers have said some of their customers have switched to other brands because GM doesn’t offer hybrid models.
Ford’s sales declined in part after it discontinued its popular Escape compact SUV, one of its most fuel-efficient offerings. Ford’s overall sales also have been pressured this year by lower pickup-truck production after a fire at an aluminum supplier cut output.
Automakers with several hybrid models – which combine a gas engine with an electric motor and battery to save fuel – have fared better this year amid higher gas prices stemming from the Iran war.
Sales from Hyundai and Kia combined are expected to surpass Ford’s sales in the third quarter, which would be the first time the sibling South Korean automakers sold more cars than Ford in any quarter, according to Cox.
In a statement Ford said Hyundai and Kia are two separate companies and “even lumped together, Ford outsold the two Korean companies combined year to date. By revenue, the gap between Ford and Hyundai Kia is much higher.”
Toyota, the industry’s leader in hybrid sales, is expected to post a 1.1% sales gain through three quarters. Honda’s sales are expected to be up 5.6%, Cox said.
“We see some of these Asian brands coming forward and really taking the industry by storm,” said Erin Keating, Cox executive analyst. “Most importantly, they have the hybrids.”
Overall, US consumers are weathering tough economic pressures. Cox forecasters upped their US vehicle sales expectations to 16.1 million for the year, from an earlier forecast of 15.8 million.
“Despite this volatile year, the new vehicle market has actually held up surprisingly steady,” Keating said.
(Reporting by Kalea Hall in Detroit; Editing by Mike Colias and Aurora Ellis)
