November Auto Sales Take Double-Digit Dip

Sales plummeted by more than 40% at three automakers: 47% at Chrysler, 42% at Nissan, and 41% at General Motors. Toyota sold 33.9% fewer vehicles than in November 2007, Honda's sales declined 31.6%, and Ford's fell 30.6%. BMW said its sales dropped 26.8%.

Analysts estimated that November's sales rate was slightly lower than October's, which was a 25-year low, as the economic downturn and tight credit markets deterred consumers from buying a new car or truck. Though G.M., Ford, and Chrysler have been hit hardest because they sell higher percentages of trucks and sport utility vehicles, this has been an unpleasant year for foreign carmakers like Toyota and Honda as well. Those companies have been deeply discounting their vehicles, something they have done only sparingly before.

The news comes as the leaders of the Big Three Automakers resume their meetings with Congress as they seek to secure financing of more than $40 billion dollars. During the last meeting, skeptical lawmakers told the companies' leaders that they were unimpressed with the turnaround strategies in place at the troubled automakers. As part of a new plan, G.M. said it would deeply cut jobs, factories, brands, and executive pay as part of its plea to get $12 billion in federal loans and an additional $6 billion line of credit. Meanwhile, Ford said in its plan filed with Congress that it could survive through 2009 with its cash on hand and by tapping into its credit line with private banks.

The White House so far has resisted calls for any new taxpayer aid for the automobile industry but instead has pushed for Congressional action to speed up $25 billion in federally subsidized loans that were authorized in an energy bill last year to encourage advanced fuel efficiency.

Source: The New York Times, BusinessWeek

Copyright ©Ringier Trade .com.