Tuesday, February 03, 2009

Auto sales off sharply - not just Detroit cars, either

It was expected that auto sales for January would drop, but not like this.
NEW YORK (CNNMoney.com) -- Auto sales tumbled 38% in January, plunging even more than expected to their worst levels since 1982 as a pullback in purchases by rental car companies became the latest problem for the troubled industry.

General Motors (GM, Fortune 500) reported that its sales plunged 49% from a year ago. Ford Motor (F, Fortune 500) said sales fell 39% at its Ford, Lincoln and Mercury brands, and 40% overall when including sales at Volvo, which Ford is trying to sell. Chrysler LLC reported a 55% drop in sales.

But it wasn't just the U.S. automakers reporting sharply lower sales. Toyota Motor (TM) reported a 32% decrease in its U.S. sales, while sales at Honda Motor (HMC) tumbled 28%. Nissan (NSANY) sales fell 30%.

"We are facing unprecedented times in the industry, and no auto company is immune from current market conditions," said Dick Colliver, executive vice president of sales for American Honda, in a statement.
This was NOT the fault of union labor. This was a result of the Recession.

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