A research firm claimed yesterday (2nd December) that auto sales in the US have plummeted to their lowest levels in 26 years as consumers continue to rein in their spending.

Autodata Corporation found that sales in the nationwide industry fell by 37 per cent during November on a year-on-year basis, with major slumps recorded by all the leading manufacturers.

General Motors (GM), for instance, saw sales slide by 41 per cent, while Toyota recorded falls of 34 per cent - its worst since 1981 - and Chrysler LLC suffered a 47 per cent decline, which was the most for 26 years.

Commenting on the results, Rebecca Lindland, a Lexington-based analyst at HIS Global Insight, told Bloomberg: "When you think of the psyche of the American consumer right now, it's bad.

"And until we start seeing some help from the economy we are going to keep seeing months like this."

Automakers have been begging for financial support from the government to help combat the effects of the economic downturn and GM, Ford and Chrysler yesterday appealed to Congress for $34 billion in loans.

Meanwhile, Ford's sales were down by 31 per cent and it now intends to cut production in North America by 38 per cent, while GM is planning to cut first-quarter output in the region by 32 per cent.

As Mike Robinet, an analyst at CSM Worldwide Inc in Michigan, explained to the news provider: "We've probably reached a point where no vehicle is immune from the ravages of the market."

Source:

U.S. November Auto Sales Plunge 37% on Recession (Update1) (02/12/08)
http://www.bloomberg.com/apps/news?pid=20601087&sid=a91kPEWlcOos&refer=home