The minus sign key was oft-used by US auto industry statisticians at the back end of last week as they totted up the results for the first January since the subprime mortgage crisis and really high fuel prices hit.
Go deeper with GlobalData
Nonetheless, although there were the usual winners and losers among individual automakers, overall industry sales were off just 3.9% to 1,044,773 cars and light trucks/SUVs, according to WardsAuto.com.
Chalk one up for the US automakers, in fact, whose car sales were actually up 0.4% to 350,411 while sales of import brand cars (these are the guys who specialise in the fuel-sipping models, note) were off 5.1%.
The US industry mainstay, light trucks, saw sales fall 6% but the import brands were off 7.1%. Meanwhile, total domestic brand light vehicle sales fell 3.3% and the imports were down 5.9%.
Turning to automakers themselves, Chrysler did not start its first full year under private ownership at all well with a 12.4% fall to 136,994 cars and ‘light’ trucks.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“We’re moving fast to earn the trust of dealers and customers and prove that we are listening,” said new marketing chief Deborah Meyer in a statement.
“In the first 60 days after Chrysler became private, we approved 260 line-item improvements to our products. With all of the changes, we have the opportunity to really get back in step with the American public.”
Ford volume was off 4.1% but crosstown rival GM managed something rare last month across the industry – an uptick (2.6%).
Rises were rare in import land – minnow Mazda managed 10.1% and Mercedes 7.1% and that was about it of note.
Toyota and Honda both posted falls of 2.3% and Nissan was off 7.3%. Larger falls were led by Mitsubishi (-23%), Hyundai (-22.6%), Porsche (-13%) and Suzuki (-12.9%).
But this is a cyclical biz, with many new models waiting in the wings, and the marketers can at least console themselves that one month does not necessarily a bad year make.
For example: “We’re seeing real strength in our compact and subcompact vehicles,” said American Honda sales chief Dick Colliver. “[Our] products like the Civic, CR-V and Fit are proving to be solid performers in these turbulent economic times.”
“It is a tough economic climate but fuel efficient vehicles like Rio and Spectra continue to sell well even as gas prices remain high,” noted Kia America chief Len Hunt. “We saw a good start in what is typically a slow month and in what is predicted to be a tough year in the auto industry.”
“We are disappointed with our sales results and recognise this is a challenging sales environment and the industry overall is struggling,” said Dave Zuchowski, Hyundai Motor America’s sales chief.
“We are hopeful that the government’s proposed fiscal stimulus package and our newly announced incentives will get us back on track in February.”
“On the retail front, consumers are sitting in the catbird’s seat, with falling interest rates and a competitive market giving rise to showroom values,” noted Toyota president Jim Lentz.
“On the product front, the migration toward passenger cars dovetails nicely with February’s launch of the [new] Corolla and Matrix.”
However, the Associated Press noted that industry analysts have predicted 2008 will be the worst US auto sales year in more than a decade.
Given that, January was not an auspicious start.
Graeme Roberts
