- General Motors down 53%
- Ford down 48%
- Chrysler down 44%
- Toyota down 40%
- Nissan down 39%
- Honda down 38%
- Hyundai down 2%
Hyundai has limited severe declines in their sales via a creative incentive for its customers. Hyundai will cover a new vehicle's depreciation if customers return a car within 12 months because they are unable to make payments due to a job loss, disability etc. Subaru sales were up 1% mainly due to the Forester model shown below. The Forester doubled in sales over the same period last year.
Even though automakers have spent more money on rebates, low interest rate financing and other incentives, buyers have continued to avoid purchasing new cars.
Many buyers are opting for used cars due to the decline in used car prices over the last year. Althought rising used car prices may change that picture.
GM and Chrysler are have submitted their viability plans to the government. The automobile business is a capital intensive business and severe sales declines impact their ability to operate. The American auto manufacturers are not currently well capitalized. Few businesses can take severe sales declines without a substantial balance sheet and the cash to endure this downturn. These kind of numbers if sustained would be a difficult obstacle to their continued viability.