CAR SALES SLUMP STALLS
As two of Detroit’s three automakers inched ever closer toward bankruptcy, the industry got a bit of good news yesterday when March auto sales — though dismal — weren’t as bad as analysts feared.
Overall, US auto sales tumbled 37 percent last month for the 17th consecutive drop in car sales, bringing annualized car sales to under 9 million units. In February, those sales dipped to 9.12 million — the lowest level since 1981. March had one fewer selling day than a year ago.
General Motors continued to drive the decline, recording a 45 percent plunge in car sales, right about what analysts expected. It was a vast improvement from February, when sales tanked 53 percent.
Ford sales skidded 40.9 percent in the month, which was slightly better than expected, even as sales of SUVs like the Expedition and Explorer fell 73 percent. Chrysler dropped 39 percent.
Among the Japanese automakers, Toyota sales sputtered 39 percent, while Nissan was off 38 percent and Honda was down 36 percent.
Despite continuing sales erosion, GM, Ford and Toyota all posted meager double-digit improvements from February’s 27-year low, and auto executives noted that record incentives helped stoke customer traffic in the last week of March.
“We believe we may be at or near the trough of the industry’s year-to-year comparisons, but do not see an uptick in industry demand before (the fourth quarter of 2009), at the earliest,” said analyst Efraim Levy at Standard & Poor’s Equity Research.
Automakers’ average incentive in US showrooms in March hit an all-time high of $3,169 — up 30 percent from a year ago, said auto Web site Edmunds.com.
In addition, Ford and GM have launched programs to cover buyers’ monthly car payments of up to $700 in the event they lose their jobs, similar to a plan Hyundai Motors has used for months.
Meanwhile, GMAC Financial Services said yesterday it would provide $5 billion for consumer auto loans over the next 60 days, and allow lower minimum credit scores for financing.
