WEAK DOLLAR VERSUS EURO CAUSES DECLINE IN GERMAN CAR SALES

Remember, a weak dollar causes imported foreign goods to be more expensive for those using the dollar to make purchases, while U.S.-made goods exported to other countries, in this case Germany, a user of the Euro, are less expensive to those using the Euro.

From The New York Times:

This year, the dollar was down about 6 percent against the euro, which damaged German car sales in this country. Its auto trade surplus with the United States fell 30 percent.

The declining American trade deficit for the auto industry does not mean that this country is anywhere close to reaching a balance in the sector. During the second quarter, the United States imported $1.90 in automobiles and parts for every dollar of such goods it exported. That is the lowest ratio since 1998 and is down from $2.27 in the 2006 period. It is way below the record ratio of $4.22, reached in 1989.

But it still means that it would take a 31 percent increase in American auto exports, and a similar decrease in imports, to produce a balance in auto trade. That would require a much lower dollar — and a much weaker American economy.

TOYOTA #1 IN GLOBAL VEHICLE SALES IN 1ST QUARTER

There is a new leader in global car sales according to data from 2007 first quarter sales.

From The Washington Post:

General Motors' 76-year reign as the world's largest automaker is over.

Fifty years after its cars first hit U.S. shores, Japanese automaker Toyota has surged past the 20th-century American colossus, selling more vehicles worldwide than GM during the first three months of this year.

The global sales benchmark had been looming for years, and its realization was only a matter of time, analysts said. In the United States, GM still sells the most vehicles, owning about 23 percent of the market, compared with Toyota's 16 percent.

GM had managed to hold on to its shrinking lead over Toyota in recent years, but the two companies are heading in opposite directions. GM has lost $12.4 billion over the past two years and plans to close 12 North American plants by the end of next year. By comparison, Toyota reported a profit of about $12 billion during its most recent fiscal year and expects to open its eighth North American factory in 2010.

For the first three months of 2007, Toyota sold 2.35 million vehicles worldwide, compared with 2.26 million for GM. Notably, Toyota's sales were up 9.2 percent over the first three months of 2006, while GM's were up 3 percent.

Last year, GM sold 9.1 million vehicles to Toyota's 8.8 million.

Toyota expects to sell 9.3 million cars in 2007; GM does not provide forecasts.

NOVEMBER AUTO SALES RESULTS

Here is the list of winners and losers for November U.S. light-vehicle sales (includes light trucks and SUVs). The comparison listed is November of 2006 to November of 2005.

Winners
Acura +24.0% (division of Honda)
Toyota +15.9%
GM +6.1%
DaimlerChrysler +4.7%
Chrysler Group U.S. +2.9%

Losers
Ford -9.7%
Honda -3.0% (Honda brand only)
Nissan -1.6%

This was only the second month ever that Toyota sold more vehicles in the United States than Ford. Toyota sold 196,695 vehicles to Ford's 181,111.

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