SEPTEMBER U.S. AUTO SALES

Richard Truett
and James Henry

Automotive News | October 1, 2008 - 2:22 pm EST

With a 32.3 percent decline in sales, Toyota Motor Sales U.S.A. in September turned in one of the worst performances in its 50-year history in the United States. Toyota sold 144,260 vehicles last month, down from 213,042 in September 2007.

American Honda saw its September sales decline 24.0 percent over last year, while General Motors fell 15.6 percent.

In a conference call with journalists this afternoon, Toyota officials said their September sales were hurt by low consumer confidence and a general downturn in floor traffic, even though Toyota and Lexus dealer should not have felt much direct effect from the credit crisis.

“Toyota’s credit rating is so good, our dealers have good access to credit and leasing,” said Don Esmond, senior vice president of automotive operations for Toyota Motor Sales U.S.A. Inc.

Toyota and Toyota Financial Services have “AAA” credit ratings, according to Fitch Ratings, much higher than the Detroit 3 and their captive finance companies.

Nevertheless, floor traffic dropped sharply for most Toyota and Lexus dealers at the end of September as Wall Street faced its worst crisis in decades and stock markets plunged.

“The last 10 days are typically the best (of the month). We saw it declining to extremely low levels the last couple of days,” said Bob Carter, group vice president and general manager, Toyota Division.

Brian Smith, vice president of Lexus sales and dealer development, said luxury-car customers seemed to be particularly affected by the news about the credit crunch.

“It certainly put the brakes on consumers, especially luxury. They take a look at their 401(k)s and we had folks calling up and asking for deposits back. It’s because they lacked confidence,” he said in the conference call.

Toyota said its results were the worst since it posted a 32 percent decline in its daily selling rate in June 1987.

Honda results down

Honda’s September sales totaled 86,629, a result Honda officials blame on jittery consumers.

“This month was an incredibly volatile month for Wall Street,” Dick Colliver, Honda’s executive vice president for sales, said in a statement. “Obviously, no one is immune to market shifts as dramatic as we are seeing.”

GM’s 15.6 percent decline for September easily outperformed most of the industry.

Because GM’s decline was less than most other automakers, GM posted its best monthly market share of the year at 27 percent. Still, the sales numbers were ugly.

Saturn, GM’s best-performing division, saw a 10 percent decline over last year. For the month, GM delivered 284,300 vehicles, down from 337,640 last year.

Misery loves company

“We have to get our U.S. business turned around in order for GM to succeed,” CFO Fritz Henderson told reporters today in Paris at a press event on the eve of the auto show there. “We must. There’s no other choice. And with the U.S. as it stands, I think it’s going to be difficult for us.”

Nissan Motor Co. reported a 37 percent drop in U.S. vehicle sales for September from a year earlier.

The sales decline included a 42 percent drop in sales of light trucks and a 34 percent drop for cars.

Nissan said in a statement it sold 59,565 vehicles, including both its Nissan and Infiniti brands in September. That was down from U.S. sales of 94,269 vehicles a year earlier.

Meanwhile, Kia Motors America saw a 27.8 percent decrease in September unit sales from 2007, although its year-to-date passenger-car sales are up 17.2 percent from 2007.

Mazda North America reported a 35.6 decrease in September unit sales from 2007. But its 2009 Mazda6 arrived at dealerships in September and exceeded the company’s sales objectives, with 3,694 vehicles sold.

BMW and MINI combined for 25.7 percent sales volume losses in September over 2007. Year-to-date sales decreased 4.8 percent from 2007. BMW’s 6 Series saw sales volume decrease 64 percent, sales of the Z4 roadster and coupe decreased by two-thirds, and sales of MINI’s Cooper convertible decreased by three-fourths.

Suzuki and Subura also reported steep declines.

Subaru fell 11.9 percent to 14,491 vehilces sold while Suzuki fell 46.6 percent to 4,083 vehicles sold in September.

Toyota monthly sales plummet 32%

Honda down 24.0%, GM down 15.6%, Nissan down 37%