Toyota Sales Drop 31%

TORRANCE, Calif. (TheStreet) -- Toyota (TM) said August sales fell 31% as a result of an unfavorable comparison with the same month a year earlier, when Toyota benefitted disproportionately from Cash for Clunkers sales.

But some analysts said the decline at Toyota was more than expected. "Toyota was expected to report a big year-over-year decline because it was one of the biggest beneficiaries of Cash for Clunkers last year, but this month's results are even worse than expected," said Edmunds.com analyst Michelle Krebs, in a prepared statement. "Toyota still is suffering a hangover from its numerous recalls this year. It is taking a long time for Toyota to get back to 'business as usual.' "

Edmunds.com analyst Jessica Caldwell said that other manufacturers are seeing increased sales from new car introductions, but "Toyota has no exciting product news to speak of."

For the month, Toyota sales totaled 148,388, third behind General Motors with 184,921 and Ford(F) with 157,503. Ford reported a 10.7% decline, while the GM decline was 24.6%.

Still, in a prepared statement, Don Esmond, senior vice president of operations, said that: "Customer loyalty rates have returned to traditional levels," and Toyota is pleased with the results. While its Toyota division passenger car sales declined 47%, trucks declined 7.6% to 53,012. Sienna minivan sales rose 15.7% to 8,729.

-- Written by Ted Reed in Charlotte, N.C. .

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