Sign in Subscribe
Automobile industry

Auto Industry Sees Worst Sales Year Since 1992 as Consumer Confidence Plummets

Strategic Insights

— 1 min read

The North American auto industry suffered its worst sales year since 1992, with sales plummeting 13.2 million cars and trucks, a decline of 23% from 2007. This decline was attributed to higher unemployment, lower consumer confidence, and a tight credit situation. Despite the sales slump, Subaru of America Inc. saw a 0.3% increase in sales, while compact SUVs and certain models such as the Ford Escape, Chevy Malibu, and Dodge Challenger performed well.

Key Takeaways:

  • The auto industry sold 13.2 million cars and trucks in 2008, a decline of 23% from 2007.
  • General Motors Corp. sales dropped 31% to a 49-year low in December, while Chrysler's monthly sales plummeted by 53%.
  • Toyota Motor Corp. reported a 37% sales slide, Honda Motor Co. said its sales tumbled 35%, and Nissan Motor Co. posted a 31% decline in December.
  • Subaru of America Inc. was the only major automaker to see an increase in sales, with a 0.3% rise to 187,699 vehicles in the U.S.
  • The sales slump is attributed to higher unemployment, lower consumer confidence, and a tight credit situation.
  • Compact SUVs such as the Ford Escape, Chevy Malibu, and Dodge Challenger are bucking the trend, with sales increases.
  • The Big Three automakers are preparing for the North American International Auto Show in Detroit, where new products will be unveiled.
  • Automakers are offering large incentives such as zero-percent financing and rebates to boost sales.

Statistics:

  • 13.2 million: The number of cars and trucks sold in the auto industry in 2008.
  • 23%: The decline in sales from 2007 to 2008.
  • 49-year low: GM's December sales, which dropped 31%.
  • 53%: The decline in Chrysler's monthly sales.
  • 37%: The sales slide at Toyota Motor Corp.
  • 35%: The decline in sales at Honda Motor Co.
  • 31%: The decline in sales at Nissan Motor Co.
  • 0.3%: The increase in sales at Subaru of America Inc.
  • 2.22 million: Toyota's sales in 2008.
  • 2.95 million: GM's sales in 2008.
  • 2.22 million: Ford's sales in 2008.
  • 43%: The increase in Malibu sales in December.
  • 19%: The increase in Impala sales in December.
  • 195,823: The number of Focus models sold by Ford in 2008.

Sources:

  • J.D. Power's Power Information Network
  • AutoPacific Inc.
  • IHS Global Insight
  • Pittsburgh Post-Gazette
  • The Associated Press
  • McClatchy-Tribune Information Services

Read more