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



  • 2007 Chevrolet Trailblazer LS
    2007 Chevrolet Trailblazer LS
    2007 Chevrolet Trailblazer
    LS
    17 months remaining
    $199.00 per month
    Silver color
    Gray interior
    Brownstown, MI 48134
  • 2008 Mercedes SLK280 Roadster
    2008 Mercedes SLK280 Roadster
    2008 Mercedes SLK280
    Roadster
    15 months remaining
    $387.91 per month
    Other color
    Beige interior
    Johns Creek, GA 30097
  • 2008 Audi Q7 3.6 Premium Quattro
    2008 Audi Q7 3.6 Premium Quattro
    2008 Audi Q7
    3.6 Premium Quattro
    21 months remaining
    $550.00 per month
    Gray color
    Gray interior
    Santa Monica, CA 90404
  • 2006 Mercedes SL500 Roadster
    2006 Mercedes SL500 Roadster
    2006 Mercedes SL500
    Roadster
    14 months remaining
    $899.00 per month
    Red color
    Gray interior
    Commack, NY 11725
  • 2008 BMW 328 i Sedan
    2008 BMW 328 i Sedan
    2008 BMW 328
    i Sedan
    28 months remaining
    $399.00 per month
    Red color
    Black interior
    Charlotte, NC 28269
  • 2008 Mercedes S550 Sedan
    2008 Mercedes S550 Sedan
    2008 Mercedes S550
    Sedan
    28 months remaining
    $1,199.00 per month
    Dark Blue color
    Beige interior
    Glendale, CA 91207
  • 2008 Land Rover LR2 SUV
    2008 Land Rover LR2 SUV
    2008 Land Rover LR2
    SUV
    11 months remaining
    $297.00 per month
    Amber Fire color
    Black interior
    Upton, MA 01568
  • 2007 BMW 328 Xi Sedan
    2007 BMW 328 Xi Sedan
    2007 BMW 328
    Xi Sedan
    6 months remaining
    $399.00 per month
    Silver color
    Gray interior
    Short Hills, NJ 07078
  • 2008 BMW 328 i Convertible
    2008 BMW 328 i Convertible
    2008 BMW 328
    i Convertible
    20 months remaining
    $685.00 per month
    Black color
    Black interior
    Bal Harbour, FL 33154
  • 2006 Mercedes CLK350 Convertible
    2006 Mercedes CLK350 Convertible
    2006 Mercedes CLK350
    Convertible
    20 months remaining
    $470.00 per month
    White color
    Gray interior
    Delray Beach, FL 33483