Car sales continued their dark and cloudy run in March, but that didn't stop automakers from casting about for silver linings.
Sales of new cars and light trucks in the U.S. last month declined 37% from the year-earlier period, according to Autodata Corp. The dismal performance marked the 15th straight month of declines for the industry.
Yet, desperate for any good news, executives at major automakers found surprising encouragement in the numbers.
"I think we're seeing the first signs of a brightening in outlook for the industry," said Mike DiGiovanni, chief sales analyst at General Motors Corp., which reported a 45% sales decline for the month and on Monday learned that President Obama deemed its restructuring plan inadequate.
"Despite the difficult conditions, we are seeing some signs for optimism," said Bob Carter, group vice president at Toyota, whose sales declined 39%.
At Chrysler, which also got stern treatment from the president, spirits were relatively high despite a 39% sales drop in March and 46% so far in 2009. "We feel we're making the progress we've been forecasting," said company Vice Chairman Jim Press.
Collectively, it was a curious talking point from an industry that, even after a slight uptick in March, is on pace to sell only 9.89 million cars this year -- a quarter fewer than in an already weak 2008.
Ford Motor Co.'s sales were down 41%, while Honda Motor Co.'s fell 36%. Nissan, the last of the six largest manufacturers that sell in the U.S., reported a 38% decline.
No manufacturer reported a sales increase for the month, although Kia Motors Corp., Hyundai Motor Co. and Subaru all held their declines to single digits.
Much of it has to do with context, analysts say. "We have a depression level of car sales in this country," said David Cole, chairman of the Center for Automotive Research. "Consumers have been barraged by bad news about the auto industry and need a reason to find confidence."
GM has 60 days, and Chrysler 30, to prove to the Obama administration that they can get on track financially. If not, they face being cut off from further federal aid and possibly having to file for bankruptcy. Combined, the two automakers have borrowed $17.4 billion from taxpayers.
Although other automakers aren't in the same bind as GM, the tough economy has been slamming all of their sales. The tide of bad news about the auto industry seems to have kept buyers of all stripes on the sidelines.
