Decline in Auto Sales

Automakers see big sales declines in January

For the sixth straight month auto sales have been on the decline. GM vehicle sales dropped 49%, Ford sales have gone down 40%, Toyota down 32%, and Nissan’s 30%. Starting in 2009 GM and other car companies have already seen declines in sales even to fleet accounts from customers such as rental car companies.

The only two companies that have shown any growth was Subaru for the second month in a row gaining an 8% sales increase and Hyundai saying their sales went up 14% as well. One possible reason Hyundai said their sales have risen while competitors have declined was because of their new policy which will cover new vehicles depreciation if a customer returns the car within 12 months because they are unable to meet the payment requirements.

Both the domestic and foreign car makers said they have been struggling since the unemployment rise, consumer confidence has weakened, and people are having a tougher time obtaining loans, are all helping contribute to this decrease in consumer purchasing. Chrysler said their annualized sales rate for the month could be dropped below 10 million which would be for the first time in over 26 years. In order to try to lure in new customers, the automakers have been offering heavy incentives to try and boost sales. According to Edmunds.com the average incentive now for automakers is at $2714 per vehicle.lllll lllllllll l l l l l ll l l l l l l ll l l l l l l l ll l l l

Source: http://www.msnbc.msn.com/id/28996904/