Ford’s Sales in December Plunge More Than 32%

Jan05

Ford’s Sales in December Plunge More Than 32%

AUTO INDUSTRY | By NICK BUNKLEY | |

The decline means Ford’s sales fell 20.7 percent, a difference of more than 500,000 vehicles, for all of 2008.

Other major automakers, including foreign and domestic brands, are expected to say that their sales fell at least 38 percent in December, according to projections by Edmunds.com. The most dismal reports will probably come from General Motors and Chrysler, which both received $4 billion in loans from the federal government at the end of December to help them remain solvent, as well as from Nissan.

Smaller carmakers fared only slightly better. Mercedes said its sales fell 23.5 percent last month and 11.2 percent for the full year.

Over all, analysts say 2008 will end up as the worst year for selling cars and trucks since 1992. But that comparison does not capture how quickly business deteriorated in recent months, as credit markets tightened and consumer confidence sank.

Plummeting demand for vehicles caused Toyota last month to project its first full-year operating loss in 70 years, showing that the industry’s woes extend far beyond Detroit.

George Pipas, Ford’s chief sales analyst, projected total industry sales for 2008 of about 13.5 million, a full 3 million fewer than in 2007. Not since 1974, when an oil embargo against the United States caused the price of oil to quadruple, has the market collapsed that much in a single year, he said.

Analysts said December’s sales rate would probably be worse than even the 26-year lows reached in October and November.

“When you adjust it for population, this is something that we really haven’t seen since the 1960s,” Erich Merkle, an automotive analyst in Grand Rapids, Mich., with the consulting firm, Crowe Horwath, said. “This is a really horrible cycle in terms of auto sales.”

There were some modest bright spots for Ford. The company estimated that its market share increased to 14.6 percent in December, up 0.7 of a point from a year ago. It marks the first time in 11 years that Ford’s market share rose, on a year-over-year basis, for three consecutive months.

In addition, the Ford F-series pickup appears to have maintained its position as the best-selling model in the United States for a 27th consecutive year, despite surging demand for small cars like the Honda Civic and Toyota Corolla. Ford began selling a redesigned version of the F-series this fall.

  • Print this Page

This story posted by LeaseTrader.com, the automotive service company that lets people transfer out of their Car Leases early. If you're looking to swap a lease or transfer out of your car lease, please visit www.leasetrader.com



  • 2010 Toyota Prius IV
    2010 Toyota Prius IV
    2010 Toyota Prius
    IV
    18 months remaining
    $298.77 per month
    Silver color
    Pewter interior
    San Francisco, CA 94158
  • 2010 Mercedes C300 Sports Sedan
    2010 Mercedes C300 Sports Sedan
    2010 Mercedes C300
    Sports Sedan
    14 months remaining
    $337.00 per month
    Titanium color
    Black interior
    Rancho Santa Margarita, CA 92688
  • 2011 Toyota Sienna Minivan
    2011 Toyota Sienna Minivan
    2011 Toyota Sienna
    Minivan
    20 months remaining
    $295.00 per month
    Gold color
    Beige interior
    Dunwoody, GA 30338
  • 2011 Mercedes E350 4MATIC Sedan
    2011 Mercedes E350 4MATIC Sedan
    2011 Mercedes E350
    4MATIC Sedan
    25 months remaining
    $655.00 per month
    Black color
    Black interior
    Staten Island, NY 10305
  • 2010 Toyota Corolla LE
    2010 Toyota Corolla LE
    2010 Toyota Corolla
    LE
    10 months remaining
    $148.80 per month
    Gold color
    Ash interior
    New York, NY 10027
  • 2009 BMW X5 xDrive30i
    2009 BMW X5 xDrive30i
    2009 BMW X5
    xDrive30i
    7 months remaining
    $599.99 per month
    White color
    Brown interior
    San Francisco, CA 94116
  • 2010 Toyota Prius III
    2010 Toyota Prius III
    2010 Toyota Prius
    III
    16 months remaining
    $262.00 per month
    Black color
    Gray interior
    Northport, NY 11768
  • 2008 Honda Civic DX Coupe
    2008 Honda Civic DX Coupe
    2008 Honda Civic
    DX Coupe
    13 months remaining
    $354.73 per month
    White color
    Gray interior
    Mississauga, ON
  • 2011 Mercedes E350 RWD Sedan
    2011 Mercedes E350 RWD Sedan
    2011 Mercedes E350
    RWD Sedan
    29 months remaining
    $411.00 per month
    Blue color
    Beige interior
    High Point, NC 27265
  • 2009 Mercedes CLK350 Coupe
    2009 Mercedes CLK350 Coupe
    2009 Mercedes CLK350
    Coupe
    10 months remaining
    $499.00 per month
    Dark Blue color
    Beige interior
    New York, NY 10314