Southfield (WWJ) -- A 34-percent decline for Ford, 33-percent drop for Chrysler, 29-percent fall for Toyota, 25-percent drop for Hyundai, and 16-percent drop for General Motors. Consumers weren't in a car buying mood in September.
Tight credit, economic worries and high gasoline prices combined to to give Ford its worst sales month this year, and the results are a strong indication that analysts' forecasts of another dismal month will come true.
General Motors's sales drop was a less severe 16 percent, mostly thanks to an offer of employee pricing on most of its vehicles.
Chrysler reported total September 2008 U.S. sales of 107,349 units, down 33 percent from the same period last year.
Hyundai, whose single-digit sales decline this year has looked like a success against the Detroit automakers' slide, reported its U.S. sales fell 25 percent. Toyota sales fell 29.5 percent. Honda reported a 24 percent drop.
Analysts have predicted September declines of more than 20 percent for most major automakers when compared with the same month last year as upheaval in the financial markets unnerved consumers.
Jim Farley, Ford's group vice president for marketing, said economic conditions have raised uncertainty among buyers.
"Even if you have good credit, there's a reluctance to pull the trigger on a big ticket item,'' he said.
Farley also announced that the marketing campaign for the new F-150 pickup would begin in November, a month earlier than Ford had projected, and the trucks already are on their way to showrooms. It took less time than expected to sell down the 2008 inventory, he said.
If overall U.S. industry sales drop in September, it will be the 11th straight monthly decline when compared with the year-ago period. That would be the longest string of down months since 14 straight negative months ended in December 1991, according to Autodata Corp.
Dealers from many manufacturers have said their customers are having an increasingly hard time qualifying for loans to buy autos, as banks have restricted lending because of widespread mortgage defaults that led to disruptions in the financial markets and the collapse of several banks. Plus, several automakers' finance arms have limited or discontinued leasing.
George Pipas, Ford's top sales analyst, said nearly all automakers saw "extremely weak'' sales in the waning days of the month as the Wall Street crisis grew and Congress debated the government's bailout plan.
"It was tantamount, really, to a natural disaster,'' he said.
Ford sales also were hurt as buyers continued to favor small fuel-efficient cars over trucks and sport utility vehicles. Truck sales were down 39 percent, while car sales dropped 19 percent. The numbers do not include Ford's Volvo Cars unit.
There were few bright spots in Ford-Lincoln-Mercury model lineup last month, with sales of all but three models far lower than the same month a year ago. Sales increased only on the Focus small car, up 5 percent; the Crown Victoria large sedan, up 3 percent; and the Lincoln Town Car, up 69 percent. Sales of F-series pickup trucks, Ford's top selling vehicle, were down almost 42 percent for the month.
Ford, like its U.S.-based competitors, has been trying to shift its factories and model lineup from trucks and SUVs to more efficient cars and crossover vehicles, while burning through billions of dollars in cash. The Dearborn-based automaker has lost $23.9 billion in the past 2 1/2 years and has had to mortgage its assets to stay in business.
GM has performed strongly overseas but plummeting demand for its most profitable products in the U.S. has led to losses of $57.5 billion in the past 18 months, including $15.5 billion in the second quarter.
Light truck demand at the Detroit-based automaker fell 19 percent in September, while car sales slid 10 percent.
Chrysler said total September sales reflect a highly volatile economic environment, ongoing segment shifts and reduced fleet and lease volume.
"The economy is going through a difficult restructuring, resulting in great uncertainty among consumers," Jim Press, Chrysler Vice Chairman and President, said. "We are committed to supporting our customers with significant savings and innovative financing, and our dealers with new business solutions. Longer term, we all need to be investing in building a healthier automobile industry and be ready to compete when the economy strengthens."
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