GM and Ford Report Biggest Sales Decline

Things are far from getting any better for the major car manufacturers as the auto industry reports its sixth straight month of drop in sales of over 30%.

The figures are tumbling down for the major players in the car industry as the March sales reports come in. The drop in sales were reported by Ford at 42%, GM 44.7%, Chrysler LLC 39.3%, Nissan North America 37.7%, Honda in the US 36.3%, and Toyota USA by as much as 39%.

Experts have predicted a drop in annual sales which will mark a 27-year low. They are foreseeing sales to hit just below the 9 million mark. The uptick in demand may still be seen before the end of 2009.

Economists are seeing some signs of hope as the economic decline may be moderating but still it is a nothing is for sure game. Restructuring of the auto industry will still play a big factor in the next several months.

Ford has decided to lower its production for the first quarter by 26,000 units. Honda will be closing down 13 of its plants and cutting its production in North America by as much as 62000 vehicles.

Analysts pin point the low confidence of the market on the auto industry as everyone watches closely on the fate of General Motors and Chrysler which are kept afloat by a government loan amounting to $17.4 billion.

The federal government has recently declined additional loans of $21.6 billion to the car manufacturers. Hopes will be bleak for them unless they will be able to restructure properly by spring.

Consumer confidence has been on its lowest in the recent months since it has been rated in 1967.

Leave a Reply

Commenting rules

  • Try to keep your comments as relevant as possible.
  • No HTML/JavaScript/BBcode.
  • Don't be abusive: No racism, homophobia or any other nastiness.
  • Feel free to express your opinion, but do so in an eloquent way.

If you do not respect these rules your comments may be edited or even deleted.