Automotive sales are struggling right now, but it’s likely that October may be the worst month for sales in over 25 years. Sales were up approximately 10 percent in the second half of the month as gasoline prices plummeted, but that isn’t enough to help the abysmal sales of early October.
Just as gasoline prices dropped, Wall Street decided to go for a roller coaster ride. Fears over the economy are now keeping consumers from buying new cars and October sales will likely be the sixth straight drop of 10 percent or more.
The whole industry is suffering, not just the Detroit 3. It’s projected that Nissan, Toyota, and Honda sales will fall15 percent and GM, Ford, and Chrysler sales will fall 35 percent. In response to falling sales, most companies have rolled out incentives on vehicles. Toyota and Nissan recently announced that there will be 0 percent financing offers on most of the vehicles in the two automakers lineups.
Even with these attractive financing offers, several industry projections have put the total sales volume for 2008 as low as 11 million vehicles. It sounds like Ford may have jumped the gun in blaming Jim Farley’s ad campaign for the Ford Flex’s slow sales.
Source: Automotive News