March auto sales drop, GM off 13 percent Auto sales dropped 12 percent in March in a decline blamed on shaky consumer confidence, high fuel prices and concern that a housing market downturn could spread into a full recession. All three Detroit-based automakers posted declines on Tuesday. Toyota Motor Co (7203.T), No. 2 in U.S. sales behind General Motors Corp (GM.N), posted its fourth consecutive U.S. sales drop that marked the most extended downturn since 1995 for the No. 1 Japanese automaker.
GM and Toyota held out the prospect the U.S. market could stabilize in the current quarter and start to climb back as consumer confidence recovers from the battery of concerns that hit in March. Others challenged that view.
Overall U.S. March auto sales fell 12 percent before adjusting for the number of sales days in the month, driving the full-quarter down by 8 percent from a year earlier.
Toyota, notable for its fast growth and conservative forecasting, said it would be forced to lower its forecast for U.S. industry sales of 16 million vehicles in 2008.
"We're not immune to economic cycles," said Toyota division sales chief Bob Carter.
GM reported a 13 percent sales decline for the month, Chrysler LLC a drop of 13.2 percent, and Ford Motor Co (F.N) a 7.6 percent decline. Toyota, which cut U.S. truck production in March, said sales fell 3.4 percent.
Japan's Honda Motor Co Ltd (7267.T) and Nissan Motor Co Ltd (7201.T) both outperformed the weak industry and increased their market share. Sales at Honda rose 4.2 percent. Nissan posted a gain of 3.6 percent.
The results underscored the continuing weakness of the U.S. industry and touched off a debate about whether the U.S. economy and auto sales would improve in the second half.
"I would like to be able to tell you that the worst is behind us, but I really can't give you that assurance," Ford marketing chief Jim Farley said, adding that availability of consumer credit remains uncertain.
"At this point, our sense is that the next quarter, the second quarter of the year, may be our most difficult of the year," Farley said.
Sales of pickup trucks and SUVs fell 18 percent in March, a trend that has hit the truck-heavy line-ups of the Detroit automakers especially hard as consumers turn to smaller sedans and more fuel-efficient crossover vehicles.
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