The Auto Writer

When things aren't going well, sometimes you have to look for signs of promise. If you follow the auto industry, you take what you can get especially in this economy. When you find it, you leap.

For everyone with any sort of involvement in the auto industry, tracking sales data is a must. After all, if sales are down it can have a profound effect on the economy, something we’ve been experiencing now for the better part of a year.

March 2009 sales figures are in for the US market and as expected there is plenty of gloom to spread around. Yet, when examining the hard data there is some good news too, perhaps just enough of it to lighten the step of analysts everywhere.

Sharp Drop Month v. Month

Yes, domestic sales tanked versus March 2008, registering a whopping 36.8% drop. But, sales were expected to come in worse and March saw 857,735 passenger vehicles sold compared to February’s dismal 688,909 sales for an increase of 24%. In addition, March sales numbers were just 37,000 units fewer than December 2008, a month when year end sales drives usually translates into a nice finish.

Unlike February where Kia and Subaru registered small gains and Hyundai a slight drop in sales, every full line manufacturer saw a decrease in March. But, those three brands continued to pick up market share while the Big Six (GM, Toyota, Ford, Chrysler, Honda and Nissan) continued to see their share erode. However, Ford nearly overtook Toyota for the month while Chrysler continues to hold off Honda.

GM Is Tops, But Vulnerable

General Motors remains the best selling automaker in the US, but they also now carry the distinction of having the biggest sales drop when comparing the first quarter of 2008 with 2009: 48.8%.

August 2008 was the last month when US sales were above one million unit mark and we have a long way to go before that threshold is reached once again.  With the federal government backing GM and Chrysler warranties and with Ford rolling out new models at a feverish pace, the Big Three could finally be in a position to ease their losses, perhaps also benefiting from a “Cash For Clunkers” program if one is put in place later this spring.

Source: Autodata Corp.

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