SUV sales decline dents US firms

DETROIT -- Sales of sport utility vehicles fell in September, dragging down US automakers, who were already expecting consumer payback after a summer of employee-pricing discounts. Asian brands, which didn't offer employee discounts, felt less pain.

Several automakers yesterday reported strong car sales, but SUVs took a hit as gas prices skyrocketed following Hurricane Katrina. Sales of the GMC Envoy and Chevrolet Tahoe fell more than 50 percent, compared to last September's. The Cadillac Escalade, Mazda Tribute, Ford Explorer, Ford Expedition, Toyota Sequoia, and Nissan Armada all saw sales fall 18 percent or more. Dodge Durango sales were down 11 percent.

General Motors Corp. sales were down 24 percent overall. Its SUV and truck sales fell 30 percent; its car sales dropped 14 percent. GM's overall sales were flat for the first nine months of the year.

Ford Motor Co. also took a hit, with sales down nearly 20 percent in September. Ford, Lincoln, and Mercury car sales rose 6 percent, but sales of trucks and SUVs fell nearly 28 percent. The company's overall sales were also flat for the first nine months of the year.

Ford attributed the declines to the strong summer. Ford began allowing customers to pay the employee prices in July, and the incentive helped deplete the automaker's 2005 inventory. Ford expects SUV sales will stay soft in the near term.