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Thursday, August 2, 2001


art
FL MORRIS / FMORRIS@STARBULLETIN.COM
Some of the 12,966 new vehicles sold in the
state during the second quarter came from
the Tony Group Autoplex in Waipio.



State auto sales
hit brakes in
second quarter

Purchases of cars and trucks
decline a combined 4.4%


By Rick Daysog
rdaysog@starbulletin.com

Sales of new autos in Hawaii skidded 4.4 percent during the second quarter, part of a nationwide downtrend in automobile sales.

A total of 12,966 new cars and trucks were sold during the three months ended June 30, down from 13,565 a year earlier, according to figures compiled for the Hawaii Automobile Dealers Association.

The results -- which are on top of a 3.6 percent decline in car sales during the first quarter -- indicate that Hawaii's economy is beginning to feel the mainland downturn.

For the first six months this year, new car and truck sales are off 4 percent, to 25,813, from 2000's 26,897. Last year's full year sales of 52,456 vehicles were a 10-year high.

art
"The market is more sluggish both here and on the mainland," said Eric Miyasaki, chief executive officer for Nissan Motor Corp. in Hawaii. Nissan prepared the report for the association.

Sales of new trucks increased 5.7 percent, to 3,170, during the second quarter from the previous year's 2,999.

But that was more than offset by the decline in new car sales. That segment fell 7.3 percent during the same period, to 9,796 from 10,566.

Import car and truck sales slipped 3.7 percent to 8,006 from second-quarter 2000's 8,314. Sales of domestic models were down 5.5 percent, to 4,960, from 5,251.

Nationwide, retail car and truck sales were down about 4 percent during the first six months this year, according to Miyasaki. For July, car sales across the country dropped another 5.9 percent, according to industry figures released yesterday.

General Motors Corp.'s U.S. sales fell 9 percent in July from a year earlier, while Ford Motor Co.'s sales excluding foreign brands fell 13.7 percent. Both declines were slightly worse than industry analysts had predicted.

The Chrysler side of DaimlerChrysler AG said its sales fell 3 percent, a better-than-expected performance. Toyota Motor Corp. reported record sales for the month, while Honda Motor Co. Ltd. and Nissan Motor Co. Ltd. both reported sales declines.

Executives cautioned that a long-anticipated slowdown in the nation's auto industry was likely in the third quarter, even as the industry stays on track to hit its third-best yearly total for sales.

"I would describe the industry as clearly wrestling with moderating demand in an intensely competitive market," said Paul Ballew, director of industry analysis for General Motors Corp. "That's impacting all vehicle manufacturers."



Reuters contributed to this report.



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