ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, March 15, 1990                   TAG: 9003152564
SECTION: BUSINESS                    PAGE: C-6   EDITION: EVENING 
SOURCE: The New York Times
DATELINE: DETROIT                                 LENGTH: Medium


DOMESTIC AUTO SALES DOWN IN EARLY MARCH

Sales of domestically produced cars and light trucks continued to decline in early March, falling 3.8 percent compared with the comparable period of 1989.

That follows a 7.9 percent decline at the end of February. But some analysts said the latest weak results were balanced by strong sales in January, giving the first quarter a generally healthy appearance.

New-car inventories currently stand at relatively healthy levels, but auto companies have given up profits by cutting production and paying hefty customer incentives.

"After the strong sales in the beginning of the year, it's normal to see some cooling down and for rebates to lose some of their magic," said Scott Merlis, an analyst at Morgan Stanley.

Car sales fell 3.3 percent and sold at a seasonally adjusted annual rate of 6.3 million in the first 10 days of the month, falling behind last year's lackluster rate of 6.4 million for the similar period. The current rate is well below the 7.1 million rate for the first two months of the year.

Sales of light trucks were down even more, falling 4.6 percent, in early March from the comparable period last year. For the year to date, truck sales are up 3.2 percent.

General Motors, Ford and Chrysler suffered sales declines for both cars and light trucks, while the Japanese producers in the United States all posted sales gains.

Together, car sales by the Big Three were down 7.7 percent, while Japanese car sales were up 48.1 percent.

The combined market share of the five Japanese "transplants" in cars rose to 12 percent of sales in early March, compared with 7.9 percent a year earlier.

The downturn in Big Three sales probably will not affect production plans for the second quarter, Merlis and other analysts said.

The nation's auto makers plan to build in the second quarter at 6.4 percent below last year's levels.



 by CNB