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CHICAGO: US auto sales dropped 37 per cent in November amid a worsening economic crisis, credit crunch and talk of a potential bankruptcy at General Motors or Chrysler should Congress fail to deliver a massive bailout package, industry data showed Tuesday.
Every major automaker took a massive hit last month, as total US sales fell to 746,789 from nearly 1.2 million vehicles in November 2007.
Sales are now down 16.3 per cent for the year at 12.3 million vehicles, according to Autodata.
The sales figures were released as GM, Ford and Chrysler presented lawmakers with plans to radically restructure their businesses and begged them for US$34 billion in loans.
Executives from the Big Three will testify before Congress on Thursday and Friday.
GM, which saw its sales drop 41 per cent to 154,877 vehicles, said total US auto sales are now at their lowest rate in at least 50 years on a per capita basis, and called the dramatic drop off in demand the worst in recorded history.
"Every manufacturer is posting awful numbers and we are no exception," said Mark LaNeve, vice president of North America vehicle sales, service and marketing.
"The fact that we have outstanding, high quality, fuel efficient products and great deals in almost every market segment is not driving demand right now," LaNeve added.
"The consumer is scared and sitting on the sideline. We need appropriate economic stimulus to get the consumer back in the game."
Despite the sharp losses, GM managed to increase its market share to 20.4 per cent compared with 19.9 per cent in October, according to Autodata. But its share was still down from the 22.0 per cent it claimed in November 2007.
Ford also managed to increase its share of the shrinking domestic market to 15.8 per cent from 14.3 per cent a year ago despite a 31 per cent drop in November sales to 123,222 vehicles.
"The economy continues to weaken and auto sales reflect this reality," said Jim Farley, Ford vice president of marketing and communications.
"At Ford, we are focused on executing our plan. In 2009 and 2010, we'll launch an unprecedented number of new vehicles, and every product will offer consumers the best or among the best fuel economy in its class."
Ford said strong demand for its F-series trucks, particularly the all-new F-150 which was launched in November, helped it grow its market share despite the overall weakness in demand.
Chrysler's sales plummeted by 47 per cent to 85,260 vehicles and saw its market share slip to 11.3 per cent from 13.7 per cent in November 2007.
Chrysler blamed the collapse on tight credit and poor consumer confidence due to the worsening economic conditions, and said poor overall industry sales "highlight the need for government action" to bailout of the industry with US$25 billion in loans.
"2008 will go down as unlike any other year in the industry, and thus, comparisons to 2007 sales have become irrelevant," said Jim Press, Chrysler's vice chairman and president.
"Our goal is to fight to maintain our share of the retail market month-to-month by keeping a strong advertising and incentive presence in the marketplace and finding financing solutions for our customers, roughly 75 per cent of whom finance their vehicles with dealer assistance."
Some of the losses could be attributed to a planned 63 per cent reduction in low-margin fleet sales, Chrysler said. Its retail sales were down some 36 per cent in November, which is in line with the overall industry.
Toyota reported Tuesday a 34 per cent drop in November US auto sales to 130,307 vehicles as its market share rose to 17.4 per cent from 16.7 per cent in November 2007.
Honda saw its sales fall 32 per cent to 76,233 vehicles but increased its share of the US market to 10.2 per cent from 9.4 per cent in November 2007, according to Autodata.
Nissan's sales fell 42 per cent to 46,605 vehicles while Hyundai reported a 40 per cent drop to 19,221 vehicles.
- AFP/yb
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