U.S. Auto Sales Outlook Worsens

June 3, 2008 3:41 p.m. EST

Detroit, MI (AHN) - U.S. automakers continue to struggle as May auto sales came in lower. Ford Motor Corp (F) reported a 16 percent decline for the month on Tuesday. Ford sold 217,268 vehicles compared to 258,123 in the same month a year earlier.

The bulk of the decline stems from continued weakness in sales of its F-series truck line. The company reported 47 percent of U.S. sales in May came from small and midsize cars. Sales of their economy car Focus outpaced the popular F-series trucks. "In January, sales of small cars and midsized cars were 34 percent" said Ford marketing chief, Jim Farley. "It is the most dramatic customer shift we have seen in decades" Farley stated.

Toyota Motor Corp. (TM) reported a decline of 4.3 percent in May sales. The company sold 257,404 vehicles compared to 269,023 in May a year earlier.

The automaker's compact Corolla model outsold Ford's F-150 for the first time ever, selling 52,826 cars to Ford's 51,291 trucks. Last year, Toyota overtook Ford as the number two automaker in the U.S.

The sales trends continue to show a true consumer shift to gas efficient automobiles as the price of oil remains high.