Car manufacturers have reported a decline in new car sales in the US market, with demand hampered by high petrol prices and meltdown in the US subprime mortgage market.

Figures for July show that all five major car marques reported a decline in sales during the month - the first time this has happened for two years.

Ford saw sales fall to 195,314 from 241,339 - a drop of 20 per cent compared with the year ago period -, while Daimler-Chrysler's figures were down by nine per cent to 156,314 from 171,940.

Meanwhile, Japanese firms Toyota and Honda have reported a decline in sales of at least seven per cent and General Motors sales were down nine per cent.

Mark Fields, Ford President of the America's told CNN Money: "We know we have a lot of work to do, and July is a sobering reminder of the economic and competitive challenges we face."

News of the gloomy outlook in the market comes as the price of petrol hit $3 last month, just below its highest-ever level.

Sources:

DaimlerChrysler, Ford Post Lower U.S. July Sales, 01/08/07

http://money.cnn.com/news/newsfeeds/articles/djf500/200708011430DOWJONESDJONLINE000974_FORTUNE5.htm

Carmakers feel effects of petrol price as US sales plunge, 02/08/07

http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article2183296.ece





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