The Auto Writer

Few automakers can boast about a sales increase for August 2008 with GM and Chrysler posting record declines.

August Sales Went Down, Down, Down….

Domestic (U.S.) auto sales have been down all year, but sales for August 2008 have been shaping up as truly historic…as in really bad!

Each of the automakers who sell cars in the US got a one-day sales announcement reprieve on September 1st, thanks to the Labor Day holiday which always falls on the first Monday of September. Sure, it delayed the inevitable bad news, but in a year of bad news on top of bad news, I’m sure most people preferred to think about BBQ’ing, returning to school, or getting a final dip in the pool before air temperatures plunged. Besides, the news about Hurricane Gustav was trumping everything else out there.

As expected, all three U.S. automakers were hammered as customers continued to avoid big trucks and SUVs, turning to most anything sold with a four cylinder engine. Bad news for GM, Ford, and Chrysler (even Toyota) meant good news for Honda, Volkswagen, and Kia, brands whose fleets are dominated by four-bangers. True, the Chevy Cobalt and Ford Focus continued to sell well, but with not enough small car models to pull people in, even GM’s employee pricing wasn’t enough to stoke sales.

Lower Gas Prices Help A Bit

Before Hurricane Gustave pummeled the US Gulf Coast on Monday, gas prices had retreated from their historic high numbers. The drop, an average of 40 cents per gallon, likely helped encourage some people to consider a pickup truck or large SUV if only to grab a model year end bargain before it went poof. How long that slight bump will last is anyone’s guess, with additional Atlantic basin tropical activity threatening domestic oil activity, cumulative events that will likely push gas prices upward.

Winners and Losers

As the sales information for August 2008 comes in, The Auto Writer will update this page accordingly.

Update: September 5, 2008 — I’ve finished reviewing the monthly numbers from Autodata and can report the following:

Winners — Subaru saw a nice jump in sales by 14.2% and with sales up by 5.9% for the year, the automaker is seeing the best year over year performance of any car seller. Nissan nearly matched Subaru’s gains while BMW posted a small increase for the month.

Losers — What a long list this one is. Discounting Isuzu, which is ceasing sales this year, Jaguar and Porsche were the next biggest losers with sales down by over 40%. Of the major sellers, Chrysler’s sales sunk by 34.5% while Ford and GM continued to see losses exceeding 20%. Suzuki and Mitsubishi both saw big losses while even Honda dropped as its inventory of available cars dropped.

In Between — VW, Kia, and Hyundai registered some of the smallest losses and each company could finish up for the year.

If gas prices continue to fall and the economy stabilizes, car sales could increase before the year comes to an end.  Model year clear out sales have already begun and they’ll be in force through the end of the year.