General Motors and other major automakers posted sales declines after the end of the cash-for-clunkers program. Pictured is the 2010 Chrysler Sebring.
Ford Motor Co.'s U.S. sales fell 5 percent in September following two straight months of year-over-year gains, as demand dropped after the U.S. cash-for-clunkers program.
General Motors and Chrysler plunged more than 40 percent, while American Honda tumbled 20 percent. Most of the declines matched the projection of analysts. After August's year-high seasonally adjusted annual sales rate of 13.7 million units and the first year-over-year monthly gain since October 2007, analysts surveyed by Automotive News predicted an average annual rate of 9.3 million units in September. That would tie March for the second-lowest this year.
"I think we are still going to see the hangover from cash for clunkers both in September and almost potentially through the end of the year," said Rebecca Lindland, director of automotive research at IHS Global Insight.
Demand was weakest in the first half of the month, analysts said. The federal government's clunkers program, which ended Aug. 24, had stifled September sales by draining inventories and pulling ahead buyers who would have made their purchases later in the year, they said.
By the end of the month, automakers had built inventory to improve selection for shoppers, setting the stage for a gradual improvement in sales through next year.
Ford's Benefit
Ford's results included a second-straight monthly gain in sales for F-series pickups. September's volume grew 4 percent from year-earlier levels. Ford released its redesigned version of the truck a year ago today.
Ford's overall decline, predicted to be the slimmest among the Detroit 3 and major Japanese automakers, benefited from a comparison to its 36.3 percent sales drop in September 2008. In that month, Ford's slide was the worst of the five top-selling companies.
Hyundai sales swelled 27 percent, the brand's third-straight increase. BMW Group rose 4 percent, for their first increase since August 2008.
Subaru's sales climbed 1 percent, giving the Japanese automaker a 10 percent increase through September in an industry that will be down about 30 percent.
Nissan North America fell 7 percent.
Porsche's sales rose 8 percent for its second-straight monthly advance.
Daimler AG's Mercedes-Benz fell 10 percent, while its Smart microcar plummeted 54 percent.
"While we had some bright spots in September, it was still a challenging sales environment for the industry," said Peter Fong, head of the Chrysler brand, in a statement. "We believe the remainder of 2009 will continue to be a challenge for the U.S. automotive market. Credit markets have thawed slightly, but still remain tight, and consumer confidence, as we saw in September, is tenuous."
Year-over-year comparisons became more favorable last month as September 2008 saw the collapse of Lehman Brothers that plunged the U.S. economy into months of turmoil. The sales rate that month fell to 12.2 million units, at that time the lowest in 17 years.
