The Auto Writer

Like every other automaker, Kia sales for November 2008 plunged. However, with incentives of $5000 on its mid-size sport/utility vehicle, Kia managed to see sales increase on that model for the month.

Another Miserable Month For U.S. Car Sales

Yesterday, I kept finding myself going to the various sites where I check car sales information, in a bid to find out just how bad sales were for November 2008. Not much surprised me although Chrysler’s 47% drop for the month is a bit hard to fathom. When nearly half of your customers disappear from the same time a year earlier, you have to be worried!

But, as it turns out Chrysler wasn’t the only automaker to see sales drop in the 30 to 40 percent range as Ford, General Motors, Mazda, Honda, Toyota, Mitsubishi, Kia, Mercedes, BMW, Nissan and Hyundai each saw similar drops. On the other hand, Volkswagen “only” fell 19% while Subaru sales fell just 8%.

Digging Deeper, Some Models Sold Quite Well

I’m not one to take sales figures at face value, choosing to dig a little deeper to see which models sold how many units and how individual segments (car or truck) held up. Some of the more notable changes for November 2008 includes the following:

• Kia sales would have been much worse off if customers suddenly didn’t choose the Sorento, the automaker’s mid-size sport/utility vehicle. Lower gas prices and a generous $5000 rebate helped drive the price of the Sorento EX 4×4 down near the $20K level, an excellent price point for a vehicle of that size. For the month, Sorento sales were up about 47% thanks to incentives.

• The BMW Group must be glad that its MINI line is doing so well. Though nowhere nearly as profitable as the BMW brand, MINI is doing very well for the German company, seeing sales increase by 43% while BMW sales slid by 36%. Combined, the BMW Group’s sales dropped by 26.8% for the month.

• Getting 14 mpg city and 17 mpg highway is a disaster when gas hovers around $4 a gallon but with prices dipping below $1.80, suddenly the Toyota Sequoia is appealing once again. Buyers, all 1873 of them, snapped up the big SUV last month, an increase of nearly 52% over the same period last year. Zero percent financing for up to 72 months is helping push the Sequoia out of Toyota showrooms, an offer that is in place through January 2, 2009.

• Chrysler’s once popular 300 is no longer prized, partially because it isn’t the thriftiest model out there. In addition, the car desperately needs a redesign. Sales for the month were down a whopping 70%. For Dodge dealers, the Viper suddenly surged in sales from just five units in November 2007 to sixty-one last month – a 1120% gain.

• Like everyone else, Mazda got pounded in November, but their one bright point for the month is a vehicle that has been selling well all year: the Mazda5 crossover (or is it best described as a mini minivan?) Year to date, sales are up by 58.3% but for November sales managed to triple over November 2007.

• Of the Big 6 automakers (GM, Ford, Chrysler, Toyota, Nissan and Honda), Honda has been the only automaker showing some restraint to building big SUVs and pickup trucks, the two segments that have seen the most losses over the past year. Still, the Honda Pilot isn’t exactly the thriftiest of all Hondas and it, too, has seen sales plunge. Ripping a page out of the “let’s incentivize our gas guzzlers” play book, Honda is offering lease specials and low rate financing on the burly beast. Sales last month increased by 4.5%, the only Honda model to see a rise for the month.

Consumer Financing Continues To Be A Drag On Sales

Financing continues to be a big problem for the industry as many bankers will only lend to people with good credit (usually a credit score of 700 or more) while leasing options continue to shrink or disappear. Year end sales have been in place for weeks, giving shoppers a chance to get a jump on some of the best bargains of the year.

Clearly, if you can pay cash for your new ride, then you stand a good chance of coming away from the deal with big savings.

Photo Credit: Kia Motors America, Inc.

Sources: Respective automakers press releases issued December 2008.