Skip to content

Accessatlantaauction.com/

default color black color cyan color green color red color
Home arrow Access Atlanta Auctionarrow 2008 Auto Sales Drop By 3 Million

2008 Auto Sales Drop By 3 Million
E-mail
Written by Clay H. Jimenez   
Tuesday, 14 July 2009
The auto industry capped a grim year Monday by posting an 18% drop in sales from 2007. Results for December, down 35.5%, offered little hope that sales will pick up any time soon.

The industry continues to reel from the gas price surge, housing collapse and banking crisis. Consumer confidence has been hammered, and many potential buyers are waiting on the sidelines for some sign that the economy is recovering before they jump in.

Jesse Toprak, executive director of industry analysis for consumer website Edmunds.com, says sales will continue to be miserable until some form of federal stimulus package kicks in.

"It is difficult to see any kind of big improvement in sales for the next few months," he says.

December sales were off almost 500,000 to 896,124, industry tracker Autodata says. Total 2008 sales fell nearly 3 million, to 13.2 million the biggest year to year drop since 1973 to 1974 when the oil embargo had people scrambling for gas, not cars. The biggest December losers included Chrysler, off 53.1%, and Hyundai, down 48.3%.

General Motors' December sales fell 31.2%, but GM says that, all things considered, it was satisfied the year ended down just 22%: A supplier strike in spring shut down some GM plants, consumers shifted quickly away from its profitable trucks and SUVs, and it couldn't offer loans to many buyers once the banking crisis hit because its finance arm was crippled.

"Looking at all that, it's pretty remarkable," says Mike DiGiovanni, executive director of global market analysis.

Foreign automakers are suffering, too. After posting a 36.7% drop in December sales, Toyota joined the call for government aid to get consumers back where retailers need them: shopping.

"Our New Year's resolution is to shift the focus back to where it belongs, to the consumer," said Jim Lentz, president of Toyota's North American sales. "The sooner stimulus efforts find their way to where they'll do the most good into the hands of consumers the sooner we'll see a turnaround in confidence levels and a return of buyers to the marketplace."

Still, there are glimmers of hope. Bob Carter, Toyota's vice president and group manager of its Toyota brand, says Midwest and Northeast sales have remained healthy. Sales have been hit hardest where the housing downturn has been most dramatic, such as California, Arizona and Florida.
Last Updated ( Tuesday, 14 July 2009 )