US car sales drop down in September 2009

Toyota's US sales drop 16% in September

Toyota reported a 16 per cent drop in September US sales as demand fell in the wake of the expiration of the government-funded "Cash for Clunkers" program.

Toyota reported a 16 per cent drop in September US sales on Thursday as demand fell in the wake of the expiration of the popular government-funded "Cash for Clunkers" program.

"Improving economic conditions and the (Clunkers) program led to a significant increase for the industry in the third quarter over the first-half year," said Don Esmond, vice president of automotive operations for Toyota Motor Sales USA.

"Moving into the fourth quarter, we expect continued momentum will close the year on a bright note."

Total sales were down 16.1 per cent compared with September 2008 at 126,015 while sales for the year to date were down 27.4 per cent at 1.3 million vehicles.


GM's US sales down 45% in September

General Motors' US sales crashed in September, falling 45 per cent after the expiration of the government-funded Cash for Clunkers program, the automaker says.

General Motors' US sales crashed in September, falling 45 per cent after the expiration of the popular government-funded Cash for Clunkers program, the automaker says.

GM says weak consumer confidence and extremely low inventory have also hit sales.

"September was a tough transitional month for the industry, and a difficult year-over-year comparison for GM," Mark LaNeve, vice-president for GM's US sales, said on Thursday.

"As expected, the market returned to pre-Cash for Clunkers levels in September, but we believe that our four core brands - Chevrolet, GMC, Buick and Cadillac - are well positioned with new products to generate enthusiasm."

GM said its sales were down 36 per cent for a "strong August", when sales fell 20 per cent from August 2008, but were up 30 per cent from July.

The fourth quarter "looks brighter" and LaNeve noted "our year-over-year comparisons should look more favourable" in the coming months, given that the current collapse began a year ago.

September sales fell 44.9 per cent in September at 156,673 vehicles and were down 36.4 per cent for the year to date at 1.55 million.

GM, which temporarily shuttered its factories when it sought bankruptcy protection in June, said inventory levels remain at very low levels but plans to gear-up production in the fourth quarter "to replenish depleted dealer stocks and improve availability of our vehicles for customers."

Production is forecast to be up 20 per cent from the third quarter but will nonetheless be down 20 per cent from the fourth quarter of 2008.
source AFP, October 2, 2009