The Auto Writer

The U.S. auto industry continues to labor under its worst downturn of our generation, posting month over month losses above 35% for the fifth consecutive month. According to Autodata Corp. which tracks U.S. Light Vehicle Retail Sales, February 2009 numbers were down 41.3% for the month.

A Silver Lining Thanks To Three Asian Brands

That bit of news should be discouraging enough, but it isn’t entirely bad. Subaru and Kia both posted tiny gains for the month while Hyundai slipped just 1.5%. Subaru has been basking in having the right product mix for our times, including the 2009 Sport/Utility of the Year model in the Forester. The Hyundai-Kia Automotive Group has used both aggressive pricing and Hyundai’s liberal return policy to help bolster sales.

Every one of the Big Six car manufacturers saw sales drop by at least 37% for the month with Nissan sinking 37.1% while General Motors led losses with sales falling 53.1%. Particularly dismal for GM is Saab, which sold only 712 vehicles for the month, reflecting consumer worry that the brand would not be around for the long haul. Hummer and Saturn, two other makes GM plans to abandon suffered as well.

Something Positive From Chrysler LLC

Chrysler saw its sales fall by 44% but with one bright spot: light truck sales beat out Ford for the month as the smallest of America’s Big Three car companies slashed prices to the bone, offering incentives averaging a whopping $5556 per vehicle. Ford, on the other hand, trimmed its incentives somewhat which allowed Chrysler to pick up market share.

Not to let a positive moment slip by unnoticed, Chrysler LLC issued a press release with the following quote regarding retail sales:

“We see our retail number as a shining light of positive news,” said Jim Press President and Vice Chairman – Chrysler LLC. “By working together with our strong dealer body, we will continue to move the needle on sales and service. Additionally, our focus on quality is evident in the 2009 Dodge Ram, which continues to demonstrate our ability to improve the quality of our products. Recently reported data is not representative of the positive progress Chrysler has made over the last year. In the last 12 months, our corporate warranty claim rates are down over 30 percent.”

Sailing Out Into Unchartered Waters

Most definitely we’re living in a time that few people have seen before as the current economic downturn deepens.  Analysts have been comparing this recession to the 1982 beat down, but as each month passes 1982 isn’t looking all that bad. When Toyota and Honda, the industry mainstays, continue to report sharp losses, then the problem goes well beyond product offerings.

Clearly, Americans are terribly worried about the economy and many are in no mood to buy a new car. As unemployment surges and credit remains tight, then many more bad months can be expected.

This news bodes poorly for GM and Chrysler which are seeking additional federal money and could force Ford to join the chorus calling for help. The Obama administration hasn’t said what action they plan on taking beyond offering a small tax credit for new car buyers, a small gesture which isn’t having much effect on new vehicle sales.

See also: As Expected, January 2009 Sales Were Horrid