The automakers won’t announce August sales figures until September, but indications are that sales are slowing down for GM and Ford.

Ford’s market forecaster announced an expected drop-off compared to August 2003.

Ford, the second-biggest U.S automaker, reported lower sales in six of seven months this year. This year through July, Ford’s sales fell 3.7 percent from a year ago to 1.84 million. Ford is the only company among the six largest automakers selling in the United States to lose sales this year. Overall U.S. industry sales have risen 2.4 percent this year.

While GM has not similarly hinted at less robust results for August, the Wall Street Journal today reported that slowing dealer orders for 2005 models suggest that the vendor is facing a toughening situation.

“Business is definitely off. I don’t intend to carry as much inventory in the next six months as I did a year ago at this time,” said Tom Shellworth, president of Shellworth Chevrolet, a dealership in Vacaville, California.

The report appears to bolster Ford’s position that consumers are not responding to discounts as they once did, possibly, one dealer suggested because of concern over slow job growth, high gas prices and election-year uncertainty.

Yes, consumers are not responding to incentives the way they have in the past. But consumers are buying; they just are buying other than Ford. The incentive doesn’t span the gap. The dynamics of the market are changing; the sooner the automakers recognize that change and embrace it, the better their chances for long-term success.

We’ll have to see what kind of lift Ford gets from the Escape hybrid. In terms of absolute numbers it won’t be great—they are simply not manufacturing enough. In terms of positioning Ford, though, it may do quite a bit.