U.S. Auto Sales plunge: 2008 could be weakest year in over a decade
Thursday, May 1, 2008 at 3:51 PM
Tags: Auto Manufacturers, Auto Sales
U.S. auto sales fell sharply in April, leading some automakers to suggest that industry-wide
annual sales could fall to the lowest levels in more than a decade and a half.General Motors posted an incredible 23 percent decline in sales, led by a 32 percent decline in truck sales. Sales for Ford Motor Co dropped 19 percent, which included an 18 percent decline in truck sales.
Toyota Motor Corp saw sales fall nearly 5 percent on sharp drops in SUVs and pickup trucks. Nissan reported a 1.6 percent overall decrease in April U.S. auto sales. Honda and Chrysler are expected to post sales data later today.
GM and Ford said preliminary data suggested industry-wide sales had fallen below 15 million units on an annualized basis, which would mark the weakest result in more than a decade and a half, according to Reuters.
Rising gasoline prices weighed hardest on sales of large SUVs and trucks, creating a market shift toward cars - a trend that tends to favor Japanese car makers.
"Smaller vehicles are going over big," said Toyota U.S. sales chief Jim Lentz. "With oil prices at record levels, compact cars and hybrids continue to lead the way."
The trend towards smaller vehicles could impact the conversion rate for satellite radio, though it remains unclear if this is truly the case.
"The more SUVs you have, the more high-end cars you have, the higher the conversion rate," said XM Satellite Radio CEO Nate Davis to analysts in late February. "The lower, the low-end cars, the less [the conversion rate] is."
[Reuters]
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Comments
Good thing XM Management put all their eggs in the OEM basket! Another well done execution!
Posted by: Not Davis | May 1, 2008 4:41 PM
What is being lost in all this is the fact that chrysler and ford have increased the number of 2008 vehicles with sirius, which should offset lower vehicle sales...
Posted by: crfceo | May 1, 2008 6:34 PM
more "subscribers" sitting on the lot.
Poor sales don't hurt Sirius . All those unsold cars are listening to Howard 101
Posted by: waitwhat | May 1, 2008 8:37 PM
Yeah pretty hard to buy a car without a job.
Posted by: Anonymous Coward | May 1, 2008 9:51 PM
hey GM... them trucks with that Ugly big ass chrome grille is one reason why they are not selling.
that and the $150 cost to fill the tank.
But as for looks
WTF are the big three thinking? those big vertical grills look like crap. I just purchaces a 2 year old Silverado over a new one cause the new body style looks bad IMO.
Posted by: jeff | May 2, 2008 8:03 AM
Jeff that is why I got an '08 Sierra. No Chrome
Posted by: another thought | May 2, 2008 1:25 PM
but they're going to have 55 million subs in a couple of years right?
Posted by: pfreak | May 2, 2008 1:27 PM