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Auto Sales For Big 3, Toyota Still Sliding

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The Associated Press

Published: March 4, 2009

DETROIT - Major automakers' U.S. sales continued their deep slump in February, putting the industry on track for its worst sales month in more than 27 years as huge rebates and low-interest financing failed to spur fearful consumers to make a major purchase.

General Motors' sales tumbled 53 percent from a year earlier, while Ford's U.S. sales fell 48 percent and Chrysler's fell 44 percent. The major Japanese automakers fared only slightly better.

The slide casts further doubt on the financial viability of GM and Chrysler, which 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. Massive layoffs, the stock market decline and sliding home values are prompting people to hold on to their cars longer, while those who are buying are more often opting for a used car or truck.
Hyundai Motor Co.'s creative "Assurance" program helped it buck the trend of double-digit sales declines with a 2 percent drop in U.S. sales last month. The South Korean company's program allows buyers to return a vehicle within a year if they can't make the payments due to a misfortune such as job loss or disability.

Toyota Motor Corp.'s U.S. sales plunged 40 percent, while Honda Motor Co.'s sales dropped 38 percent and Nissan Motor Co.'s fell 37 percent.

Most other automakers posted significant declines, but Subaru of America Inc.'s U.S. sales edged up 1 percent in February as sales of its top-selling Forester model doubled.

Kia Motors Corp.'s sales were about flat from a year earlier.

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