Sales For GM, Ford Take Big Dip

(CBS/ AP)  General Motors and Ford both reported big drops in U.S. sales in October as low consumer confidence and tight credit combined to scare customers away from its showrooms.

GM's 45 percent drop and Ford's 30 percent falloff, compared with the same month last year, is a strong indication that sales will be poor for nearly all automakers, perhaps the worst in more than 25 years.

The Dearborn-based automaker, the first to report its monthly sales Monday, said its Ford, Lincoln and Mercury car sales were off 27 percent, while light truck sales for the three brands were down more than 30 percent.

GM said Monday it sold nearly 169,000 light vehicles, down from about 307,000 in the same month last year. Car sales fell 34 percent, while light truck sales dropped 51 percent.

Despite the drop, GM's total still beat Toyota Motor Corp.'s sales. GM's Japanese rival offered zero-percent financing on several models for most of last month and sold about 152,000 vehicles, a drop of 23 percent.

Overall Ford, including its Volvo brand, sold 132,278 light vehicles last month compared with 189,515 in the same month last year.

Ford said in a statement that the company faced an "economic gauntlet" last month.

"Challenging external conditions present the best opportunity to challenge the competition," Jim Farley, group vice president of marketing, said in a statement.

Poor sales in the last three months are expected to equal dismal third-quarter earnings for the struggling automaker. Ford is scheduled to release its financial results Friday, and the down sales raise the possibility of further plant closures or shift cuts. Ford has said it will continue to reduce production to match consumer demand.

Sales of the company's F-Series pickup trucks, traditionally its top seller, fell 16 percent in October. The company began selling a new version of the pickup last month and has announced plans to add 1,000 workers at its Dearborn Truck Plant in January to handle what it expects will be increased demand.

Some industry analysts are predicting a seasonally adjusted annual sales rate in October of 10.8 million or less, down from 16.1 million a year ago. If the rate drops below 10.83 million, it would be the worst sales month since March 1983, according to Ward's AutoInfoBank. The closely watched figure indicates what sales would be if they remained at their current rate all year, with adjustments for seasonal fluctuations.

The Associated Press reports unadjusted auto sales figures, calculating the percentage change in the total number of vehicles sold in one month compared with the same month a year earlier. Some automakers report percentages adjusted for sales days. There were 23 sales days last month, two less than in October 2007.

[tachoma-2009]

I bet the CEO and the upper management team gets a large bonus Posted by joe68sg1

Yeah they the only one that can afford the gas. middle class america can''t and i wouldn''t buy their stock or their cars. Honda for life

[hsinco-2009]

It seems that Detroit learned nothing, zero, ziltch from the last time gas was at a premium. I remember during the oil embargo in the early 1970''s, US car companies only built gas guzzlers. And the US car companies lost market share to Toyota and Datsun. US car companies rushed cars like Chevette, Pintos, Maverick (no not John or Sarah) to market.

Fast forward 34 years, US car companies were again caught making gas guzzlers to the harm of those companies financial health.

The car companies have brought this on themselves by being out of touch with the markets, current and future.

[lostcountry1]

they did exactly what gouge worthless bushit, and co. told them.they repealed all the environmental policies that were in place, told the auto. industry to build gas guzzlers, gave anyone with a pulse a mortgage on one,then pushed gas prices as high as they possibly could,short of ending the country with their prices. why do people need a new car every year?same old story of greedy ceo''s fleecing america.i think its their way of getting rid of all the employees that make too much money. its the corporate strategy of america, get rid of loyal workers just before they can retire, and replace them with an illegal.

[whitemale08]

Thanks ''trickle-down'' Ronny.

Because you lauded ''globization'' by busting up unions and lowering tarrifs and c.o.l.a.s on imports you''ve managed to destroy our ''machine tool'' capacity.

Our auto industry was forced to produce small unsafe vehicles with mundane styling for the last 20 years to compete with Japan.

Only recently have you went back to true American styling and horsepower that''s American but it''s too little to late now.

You never see B.M.W. or Ferrari change their styling and craftsmanship so why would you?

Bush''s ''tax cuts for rich'' only fueled the stupid stupid unproductive, unnecessary hedge-funds and so-called buy-out-firms to loot and pillage our auto companies.

What ashame, America is on the verge of no longer producing cars, truly 3rd world status.

Thanks again Republicans and George W. Bush, thanks a million.

[lochlan-2009]

"GM''s 45 percent drop and Ford''s 30 percent falloff"

This stock has been jumping up and down by as much as 50% almost daily for the last month and change. Talk about sensationalism. Buy GM, as much as you can, and hold it until 2011-2012.

[mytoosense]

When making decisions about Auto Worker''s jobs The Big Three should replace the word "Employee" with the words "Car Buyer".

Anyone I know who lost their job from an American car company stopped buying American cars.

The next question should be how many U.S. auto jobs have been lost in America in the last 20 years.

The number may be a clue as to why the big three are in so much trouble.

Oh well, they still have lots of their auto workers in Mexico and China to buy their products.

[hennighg]

Well. So the big auto industry in the US ignored the fuel crisis in the early 70s and built SUVs while Toyota, et al, did the R&D on cars we really want. Now we''ll have to bail THEM out, too, I suppose. Profit is nice, guys. Obscene profits, however, aren''t the name of the game. You COULD have done something. For me and my Toyota, I don''t care if the auto industry in the US is lost forever or not.

[joe68sg1]

For something different, why not try to make cars that people want...that would be something different for sure.
Not EVERYONE wants a large SUV or pickup truck.
I can''t believe our domestic car companies are so stupid.
I bet the CEO and the upper management team gets a large bonus...you can count on that...