US Auto Sales Plummet in December Amid Recession and Credit Crunch

Strategic Insights -

US auto sales plummeted by 36% in December, making it the worst year for the industry since 1992. All major carmakers, including Chrysler, General Motors, Ford, Hyundai, Nissan, Mazda, Honda, and Toyota, reported sales declines ranging from 26.8% to 53% compared to the previous year. Subaru was the only major automaker to report an increase in sales for the year, with a 0.3% growth over 2007.

Key Takeaways:

  • Chrysler's car and truck deliveries fell by 53% in December, while General Motors' fell 31% and Ford Motor Co.'s was off 32%.
  • Hyundai dropped by 48.3% and Nissan Motor Co. dropped by 31%, while Mazda's sales fell by 26.8%.
  • Honda and Toyota, which had been weathering the downturn relatively well, reported declines in their US sales of 34.7% and 36.7%, respectively.
  • Subaru was the only major automaker to report an increase in sales for the year, with a 0.3% growth over 2007.
  • Tight credit has been making it difficult for consumers to obtain car loans or leases, with dealers and industry experts citing it as a major contributor to the sales decline.
  • IHS Global Insight predicts that sales will drop from 13 million last year to 10.3 million in 2009.
  • Auto analyst Steven Spivey of Frost & Sullivan believes the industry is near the bottom, with a recently approved $5 billion federal loan for GMAC LLC likely to help free up credit in coming months.

Statistics:

  • US auto sales plummeted by 36% in December, making it the worst year for the industry since 1992.
  • Chrysler's sales fell by 53%; General Motors' fell 31%, and Ford Motor Co.'s fell 32%.
  • Hyundai dropped by 48.3%, while Nissan Motor Co. dropped by 31% and Mazda's sales fell by 26.8%.
  • Honda and Toyota reported declines in their US sales of 34.7% and 36.7%, respectively.
  • Subaru's sales increased by 0.3% over 2007.
  • IHS Global Insight predicts a 21.4% decline in sales for 2009, from 13 million to 10.3 million.

Sources:

  • Newsday, Melville, N.Y., January 6, 2009
  • IHS Global Insight
  • Frost & Sullivan
  • Automotive News
  • AP Story