General Motors, Chrysler See Drop in April Sales

General Motors Corp. and Chrysler Corp. said Thursday that U.S. sales of cars and light trucks declined last month, partly because of strikes at plants in Michigan and Oklahoma.

GM’s sales dropped 5% compared with a year ago. The decline was spurred by a nearly 13% fall in car sales. Light truck sales were up an estimated 6%.

Chrysler reported an 11% drop in April sales resulting from a 14% tumble in car sales and 10% decline in truck sales.

Nissan Motor Corp. reported April vehicle sales were down 10% from a year ago, while the two larger Japanese auto makers showed gains: Toyota Motor Corp. at 10% and Honda Motor Co. at 3%.

In all, April sales were up more than 2% for the three largest Japanese auto makers.

“They were good, strong numbers, and I think they were eating GM, Ford and Chrysler’s lunch,” said David Healy, an analyst with Burnham Securities Inc.

The Chrysler engine plant strike and resulting shutdowns have created some short-term uncertainty for truck sales, said James P. Holden, Chrysler’s executive vice president of sales and marketing.

About 1,800 Chrysler workers struck an engine plant in Detroit on April 9.

The strike halted U.S. and Canadian production of the Jeep Grand Cherokee sport-utility vehicle, Dodge Ram vans, Ram and Dakota pickups and Viper sports cars.

GM is trying to resolve two strikes, one at a Pontiac, Mich., pickup truck plant where 5,850 workers walked out April 22, and another at an assembly plant in Oklahoma City where 3,500 workers left April 4.

Both strikes are over staffing levels.

The Oklahoma City strike curtailed production of the new Chevrolet Malibu and halted assembly of its structural twin, the Oldsmobile Cutlass.

The strike has cost GM 4,500 to 5,000 units in sales of the two models, spokesman Dean Rotondo said.

“The strike has affected the momentum to some degree, but we see this as a short-term situation,” he said.

Analysts say prolonged strikes could have a bigger effect in May because Chrysler and GM were able to get by on healthy inventories in April.

Healy of Burnham Securities said Japanese auto makers were able to take advantage of a weak yen and strong dollar in outshining GM and Chrysler in April. He said he is especially surprised by Chrysler’s 10% drop in light truck sales.

Analyst John Casesa of Schroder, Wertheim & Co. said auto makers will need more rebates and other incentives to confront a softness in the market for the rest of the year.

“We’re in the waning stages of this auto cycle,” Casesa said. “A lot of the pent-up demand has been satisfied.”