The US car market could be heading for its lowest ebb in 25 years after three major automakers posted significant decreases in sales for October on Monday (3rd November).

Ford reported a decline of 30 per cent in comparison to the same month last year, with sales falling from 190,195 to 132,838, while Toyota sold just 152,101 vehicles - a decrease of 26 per cent.

However, the worst affected company was General Motors (GM), whose sales slumped to 170,585, representing an alarming 45 per cent drop from the figure recorded in October 2007.

The results have led some analysts to claim that October's seasonally adjusted annual sales rate for the industry at large could fall to 10.8 million, the lowest figure for 25 years.

GM Vice-President for North American sales Mark LaNeve said: "We are obviously disappointed in our results, which reflect a difficult comparison with a strong year-ago October performance.

"More importantly, it also reflects an unprecedented credit crunch that is dramatically impacting the entire US economy."

Ford is set to come under further scrutiny on Friday when it publishes its third-quarter figures, following a loss of $8.7 billion during the second quarter.

However, the second-biggest automaker in the US is remaining defiant and is set to tackle the economic downturn by launching a range of new vehicles in the near future.

Jim Farley, Vice-President of Marketing, said: "In the next nine months we will introduce nine new products plus two new hybrids which together will account for 45 per cent of our volume in 2009."

German automaker Porsche, which is attempting to compete with compatriot Volkswagen, also confirmed that its US sales slumped by 52 per cent during October.



Source:

Sales continue to crash in US car markets (04/11/08)
http://business.timesonline.co.uk/tol/business/industry_sectors/transport/article5076549.ece