Better Days in Auto's Rear-View Mirror

February 5, 2008

(bettertrades) - Automakers posted dreadful January sales as economic conditions continue to deteriorate. The survival of the big three - General Motors, Ford, and Chrysler - has become a hot button topic in the U.S. as faltering auto producers stagger on the brink of collapse.

General Motors (GM) reported January U.S. vehicle sales dropped 48.9% to 128,198 from 250,926 during the same period last year. The largest U.S. auto producer also forecasted a 57% drop in North American production compared with January 2008.

Ford Motor (F) said January car sales plummeted 35.1% to 93,060 and truck sales dipped over 40% to 61,889.

Daimler AG (DAI) sales sunk 35.5% to 12,209 vehicles last month.

The world's new number 1 auto producer, Toyota Motor Corp (TM), reported U.S. sales plunged 31.7% in January compared to last year when the Japan-based automaker sold 117,287 vehicles. Toyota assumed the mantle of the world's number 1 auto producer from General Motors earlier this year.

Fellow Japanese automaker Honda Motor (HMC) realized a 27.9% drop in sales for the month to 71,031 vehicles. German luxury carmaker Porsche (POAHF) saw its U.S. January sales plunge 36% to 1,658 cars from 2,696.

Total sales for 2009 are expected to fall near 10.5 million vehicles which would be the lowest point in 27 years. The big three made headlines in December when they went to Capitol Hill asking for a bridge loan from the U.S. Government. Ford had previously stated they do not intend to access government funding unless car sales drop well below the December level.

Ford had previously stated they do not intend to access government funding with the caveat that car sales would have to stabilize.