Ford Gains Sales Traction; Toyota Slides
NEW YORK (
) --
Toyota
(TM) - Get Report
U.S.A's January sales plunged 16% from the year-ago period following a massive recall of popular car models and an unprecedented suspension of sales and production.
CNW Marketing Research auto analyst Art Spinella said that, based on the company's first week of sales, Toyota's January sales were expected to increase 12% to 16%.
After the automaker announced that it would stop selling some of its most popular vehicles, Toyota dealership flow traffic dropped by half, according to Spinella.
The hit in Toyota's sales coincides
with Ford's (F) - Get Reportcontinual progress in
market-share advancements. Ford has reported a roughly 25% increase in U.S. January sales and estimates achieving a U.S. market share of 16%. This is up two points from the same month last year.
GM's
sales also increased in January, up 14%.
Toyota's troubles began with a recall involving gas-pedal entrapment in floor mats. Then, on Jan. 26, Toyota announced that it is instructing Toyota dealers to temporarily suspend sales of eight models, and said it expects to stop producing vehicles on several production lines for the week of February 1.
The announcements came after Toyota said the week before that it would recall about 2.3 million vehicles in the U.S. to correct "sticking accelerator pedals." Later, Toyota expanded the recall to China and Europe.
Toyota stock has tumbled 2.8% to $77.70 ahead of the closing bell, while Ford stock has risen 2.2% to $11.40.
Meanwhile
Daimler
( DAI) stock has risen 1% to $47.30 and
Honda
(HMC) - Get Report
ADRs are up 1.1% at $34.20.
-- Reported by Andrea Tse in New York
RELATED STORIES:
>>Can Ford Reclaim Toyota's Throne?
>>See our new stock quote page.
Follow TheStreet.com on
and become a fan on
Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.