Auto sales tumble in March
GM sales decline 19% , Ford falls 14% and Toyota slips 10% from last March. Trucks and luxury brands take big hits.
March proved another tough month for carmakers, as U.S. sales declined for nearly all brands, according to results posted today.
With the economic mood dampening, General Motors Corp., Ford Motor Co., Toyota Motor Co., Honda Motor Co. and Nissan Motor Co., five of the six largest automobile manufacturers selling in the country, all reported lower sales compared to last year. Chrysler, the other large carmaker, is expected to report its results later today.
GM suffered the biggest hit, with sales down 19% for March, to 280,713 vehicles. Ford also showed a big slide, down 14%, while Toyota, which made record U.S. sales in 2007, fell 10%, its fourth straight month of declines. Honda and Nissan, both of which were slightly up in an otherwise tough February, each fell more than 3%.
Gas prices, which reached a record national average of $3.25 a gallon for the month -- a 27% increase over last March -- were partially blamed for the tough results. But other factors, such as tighter standards on loans and the prospect of better incentives from carmakers in the summer, may also have kept buyers on the sidelines.
Industry analysts were eagerly awaiting complete results to see whether the sales rate for the year was as dire as some predictions. Two weeks ago, JD Power & Associates predicted that total 2008 U.S. sales would fall to 14.95 million cars and light trucks, a precipitous drop from last year's 16.1 million.
"If we come in at 15.1 or 15.2, all things considered, that really won't be that bad," said Wesley Brown, president of auto marketing and consulting firm Iceology in Los Angeles. "Brands are doing poorly, but not as bad as the forecasters' predictions."
Industrywide, sales for the month were particularly slow for trucks and luxury vehicles. GM's overall truck sales were down 22%, while Ford's F-Series trucks dipped 24%.
Lexus, Toyota's luxury brand, was down 17.9%, compared to a 5.7% drop for the Toyota and Scion brands. Similarly, while the Honda brand was down less than 1%, its Acura flagship fell nearly 22%.
Even high-end luxury brands like Porsche, which sold 24.7% fewer vehicles this March than last, are suffering, as observers suggest that the struggling economic conditions may be causing luxury buyers to hold back on purchases.
Not all news was grim for automakers. Volkswagen saw a 12.9% increase, propelled by strong demand for the Jetta sedan.
ken.bensinger@latimes.com
