Stabilization Ahead, Though Auto Sales Continue to Decline

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) December 2, 2009 -- Though the last reports from automakers for November have shown sales that met or beat expectations, those sales still represent a sharp drop from October's auto sales. Essentially unchanged from year ago results, overall industry sales came in at a seasonally adjusted annual sales rate of 10.9 million vehicles which is the third best rate in the last 13 months.

The bad news is that before the downturn in sales hit the industry in October 2008, the latest sales rate would have been the weakest since 1983.

Edmunds.com, which is a major auto seller, says that though the figures are nowhere near the ideal, things could get worse.

Ford Motor's November sales were virtually unchanged from year-earlier results but were down about 10% from October's level. Ken Czubay, Ford vice president, said the company is still happy with the outcome of last month's sales.

"It appears that auto sales have stabilized and the worst is behind us," he told analysts and journalists on a conference call.

General Motors reported a 1.8% drop in November sales compared to November of last year which left sales in the period down 15% from the October sales. Like Fords' GM officials also said they were pleased that sales were going in the right direction. Mike DiGiovanni, GM executive director of corporate planning and other GM executives said the reorganization it went through during the bankruptcy process, especially the shedding of weaker brands, left GM in a much better position to survive these tough economy.

Both companies are positive with their first quarter projections for next year with Ford looking at an increase of 58%, while GM sees a jump 75% jump.

Toyota Motor reported an unexpected 3% gain in last month's sales compared to a year earlier while Honda Motor reported a 3% drop in U.S. sales from year-ago levels. Chrysler Group reported a 24% drop in sales compared to a year ago, a 25% drop from October sales.

Unlike other manufacturers Nissan reported U.S. sales jumping 20% from year ago levels, and the Hyundai Motor Co posted a combined 34% surge in U.S. sales at its Hyundai and Kia brands.

Though most manufacturers reported declines in sales in last month's reports, these numbers are still better than previous months and may actually be signalling a stabilization for auto sales for the major car makers.

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