- 04 April 2008 -
Top Automakers Report
Sales Slump in March

First-quarter automotive sales continued on their downward curve as several of the industry’s largest manufacturers reported a slump in sales. General Motors Corp. (GM) and Chrysler reported declines of nearly 13%, while Ford Motor Co. posted a decline of 7.7%. Sales at Toyota fell 3.4%, representing the third consecutive month that it posted a year-over-year falloff.

Although it is still early in the year, automotive industry analysts are cautiously optimistic that sales will rebound in the latter part of the second quarter. (J.D. Power & Associates forecasts industry sales won’t exceed 14 million units—the lowest amount since 1994.) Observers say much is dependent on the state of the economy moving into the second half of the year. If current economic trends persist (including a projected rise in fuel prices heading into the summer season), consumers are expected to postpone big-ticket purchases.

March’s automotive sector performance mirrors the activity witnessed in February and January. In February, GM, Ford Motor Co., Chrysler, and Toyota Corp. all reported lower revenues. GM led the declines with 13%, while Ford reported a 7% drop in sales. Toyota reported that units sold were down 3% for the month in both the SUV and sedan categories. In January, Ford Motor Co. sales dropped 4%, to 159,919 units, while Chrysler was off 12% to 137,392; fleet sales were down by 18%. GM, however, bucked the trend in January, reporting an increase—a 2.1% rise to 252,565 units. However, that same month the company reported a record $38.7 billion loss for calendar year 2007, its biggest annual decrease.