Thread: Automakers’ sales slump continued in Feb.

Automakers’ sales slump continued in Feb.
Industry now on track for the worst month in more than 27 years
updated 1 hour, 26 minutes ago
DETROIT - Major automakers reported February U.S. sales Tuesday that continued to fall sharply, putting the industry on track for its worst sales month in more than 27 years as huge rebates and low-interest financing fail to spur fearful consumers to make a major purchase.

General Motors said its U.S. sales fell 52.9 percent in February from a year earlier, while Ford Motor Co.’s U.S. sales dropped 48 percent. Toyota Motor Corp. posted a 40 percent drop, proving that massive layoffs, the stock market decline and sliding home values are prompting people to hold on to their cars longer. Those who are buying are more often opting for a used car or truck.

The slide casts further doubt on the financial viability of General Motors Corp. and Chrysler LLC, which planned to report their sales later Tuesday. They need to sell cars and generate critical cash to supplement the $17.4 billion in government loans that are keeping them in business.


Automakers and analysts have been predicting sales will rebound in the second half of this year, but they are becoming less certain.

Emily Kolinski Morris, Ford’s top economist, said retail sales to individuals had been stable for four months but dropped in February, indicating that last month may not be the bottom for auto sales.

The bottom, she told reporters and industry analysts, can’t be predicted. But she said Ford’s forecast still calls for a modest second-half recovery as economic stimulus measures takes hold.

Industry analysts say when all the numbers are tallied, February sales could be worse than January’s total of 656,976 light vehicles. That was the lowest monthly total since the industry sold 656,310 vehicles in December 1981, according to Autodata Corp. and Ward’s AutoInfoBank.

The trough is likely even though automakers spent more on rebates, low-interest financing and other incentives in an effort to bring out buyers. But despite the fantastic deals, sales continued to slump.

“If it wasn’t for the generous level of incentives now, we probably would be seeing even lower sales, if you can believe it,â€

DON'T BUY ANYTHING NEW IF POSSIBLE