Auto Sales: Worst February in 40 Years

Business Week ^ | March 3, 2009 | By David Welch and David Kiley

[Baladas]

February was another dismal moth for carmakers as every major producer saw sales drop from 35% to 53%.

The sales rate of 8.9 million cars sold was the worst February performance in 40 years as a dismal economy warded nervous consumers away from showrooms. Car sales fell 41% for the month; General Motors (GM) was the biggest loser, with sales falling 53%. Ford Motor (F) also took a big fall, as sales dropped 48%. Toyota 's (TM) U.S. sales fell 40% and the company has asked the Japanese government for $2 billion to help its finance arm write car loans.

The news was bad for other Japanese automakers, too. Honda (HMC) sales fell 38% for the month, and Nissan (NSANY) was down 37%.

"Americans are pulling in their horns because they are worried about lost income," said Michael DiGiovanni, executive director of global market analysis for GM. DiGiovanni said that between Americans who are laid off and those who say in a recent Gallup poll that they fear losing their jobs, about 36 million consumers are shying away from the market.

[Baladas]

Crash and burn, baby.

[Always Right]

this economy is now in a freefall. and Obama’s stimulus is not gonna stimulate anything.

[Tarpon]

I can't help but remember the auto sales guy with stars in his eyes over Obama, who told me he would be great and loved his plans for free health-care.

I said he didn't have a clue how the economy works.

The dealership he worked at went bankrupt and closed two weeks ago. Sure would like to meet up with him again.

[Diana in Wisconsin]

Haven’t owned a new car...ever. Don’t plan on it, either. I never was part of the problem, and I certainly won’t be part of the solution. :)

[Nuc1]

DIW,

I object to your tag line for assuming facts not in evidence. :D) I may buy a new Silverado. Looks like I better hurry, huh.

[oldironsides]

My son just crunched up my 4 wheel drive Dakota. The airbag never deployed in front end damage. Going out to look for a new GM or Ford pick up.

[RonDog]

Toyota 's (TM) U.S. sales fell 40% and the company has asked the Japanese government for $2 billion to help its finance arm write car loans.

The news was bad for other Japanese automakers, too.

Honda (HMC) sales fell 38% for the month, and Nissan (NSANY) was down 37%.

This is NOT just a problem with "American cars."

See also THIS thread:

UNSOLD CARS AROUND THE WORLD
The Business Insider ^ | Feb. 27, 2009 | Barry Ritholtz

Posted on Saturday, February 28, 2009 9:45:01 AM by Daffynition

Nissan has announced plans to cut its Sunderland workforce by 1,200. Thousands of unsold cars are stored around the factory's test track

Honda is halting production at its Swindon plant in April and May, extending the two-month closure announced before Christmas to four months. Honda and Japanese rival Toyota are both cutting production in Japan and elsewhere. Pictured, Hondas await export at a pier in Tokyo

[Comparative Advantage]

Our cars are well maintenanced and good for another 4 years, and 8 years, if necessary.

[yazoo]

We could pull out of this in a year under normal circumstances. Obama has guaranteed it will last a lot longer.

[yankeedame]

Word to the wise:

My husband is a car/truck salesman for Dodge. He is advising people to buy now, and not just for the normal reasons.

It's b/c the way things are going now inflation/stagflation is on the horizon. Buy now, lock in 60 month loan rate. Don't like that long a loan? You can always pay it off when things turn around. And he walks the walk, not just talks to talk: Around New Year's, after we talked it over, he came home with an '09 Grand Caravan w/ 60 loan.

[6SJ7]

Don’t think of it as an auto sales slump, think of it as going carbon neutral.

[Ditter]

I just bought a new Tahoe a couple of hours ago.

[jaz.357]

Whatta youz tawkin aboudt...

Wez got Great Caaz heea!

[Boanarges]

I guess that is one way of looking at the current economic climate, but it does sound like a sales pitch.

Another way to look at car sales if you’re a consumer is to just wait and wait like everyone else is doing for not only financing to collapse to zero per cent, but for prices to collapse as well when dealerships still can’t sell ‘em at 0%. This deflation spiral could last a very long time before we see any inflation. Just sayin...

[central_va]

this economy is now in a freefall. and Obama’s stimulus is not gonna stimulate anything.

It will stimulate two things, inflation and seperatism. In that order.

[mrmargaritaville]

just hold on a little longer all of those ACORN company cars (Prius’) will start flying off the lot any day now.

[DCPatriot]

And armored Prius’ for the Domestic Security cops. LOL!

[warchild9]

Please, sir, the only people who will benefit from a separation of the states are lawyers.

I’ve thought this over in detail. It’s better to stand and fight for what we have now.

[edge10]

My understanding is that the user car market is doing very well right now.

[genghis]

the stimulus is going to do exactly what it was intended to do
1-grow government
2-make more people dependent on government