Auto industry leaders, stung from one of their sharpest dives in monthly U.S. sales, hope the pending $700-billion bailout package will restore public confidence in the nation's financial system and, in turn, resuscitate their ailing operations.
In releasing September sales numbers Wednesday that fell as much as 36.8%, executives at General Motors Corp., Toyota Motor Corp., Ford Motor Co. and Chrysler said that passing the bailout bill should help housing and consumer spending eventually get back on track.
"If the bill helps restore consumer confidence, let's hurry up and make it happen," said Don Esmond, Toyota's senior vice president for automotive operations.
The industry, which gained $25 billion in taxpayer-subsidized loans under a broader measure President Bush signed Tuesday, reported is biggest percentage drop in monthly sales in 17 years.
Toyota, Chrysler, Ford and Nissan Motor Co. reported U.S. sales declines of more than 30% for the month compared with September 2007, while Honda Motor Co. and General Motors Corp. showed sharp downturns as well.
Overall, the industry sold only 964,873 vehicles -- a 26.6% slide from a year earlier and its biggest percentage drop in 17 years, Autodata Corp. said Wednesday.
Industry executives blamed public unwillingness to make purchases amid the nation's financial troubles, as well as a lack of credit from lenders.
"It's tantamount, really, to a natural disaster," said George Pipas, chief sales analyst at Ford. Showroom traffic, he added, was at levels associated with "a large storm or the aftermath of 9/11."
According to CNW Marketing Research, visits to auto dealerships in the last 10 days of September declined 51% compared with the same period last year, the largest slide in at least 22 years.
Toyota's U.S. sales last month were down 32.3% from the year-earlier period, while Ford declined 33.7%, Nissan slipped 36.8% and Honda fell 24%. Since January, Toyota's sales are down 10.4%, while Ford's have fallen 17.1%. Maserati and Bentley were the only makers to post gains in September.
Until last month, Honda had been one of the few carmakers to show a net gain on the year, but declines in August and September have now sucked it down to an overall 1.1% downturn through the first three quarters. Truck- and SUV-heavy Chrysler saw a 32.8% decline for the period, and is off 25% on the year.
