Major automakers posted lower sales for September, with Ford Motor Co. (F) reporting better sales than its peers. Sales for the month were heavily affected, as the U.S. government's "Cash for Clunkers" program ended. Ford sales fell 5.1%, Toyota Motor Corp. (TM) sales decreased 12.6%, Chrysler sales fell 42%, and General Motors sales dropped 45% from a year ago.
As analysts predicted, U.S. auto industry sales faced a setback with the automakers again reporting a double-digit sales drop in September, reflecting the impact of the exhaustion of the "Cash for Clunkers" incentive program devised by the U.S. government.
General Motors Co., now known as Motors Liquidation Co. (MTLQQ.PK), reported that September sales declined 44.9% to 156,673 units from 284,300 units in the year-ago month.
There were 25 selling days in this month, compared to 24 selling days last September.
Total car sales dropped 42.4% to 68,232 units from 118,440 units, while total truck sales fell 46.7% to 88,441 units from 165,860 units in the prior year month.
GM blamed Cash for Clunkers conclusion, weak consumer confidence and extremely low inventory levels for its lower sales in the month.
GM retail sales were down 46%, while fleet sales declined 43%.
Among GM's four core brands, Chevrolet sales fell 40.7% to 102,538 units in September, while Cadillac sales dropped 8.8% to 11,339 units. GMC sales slipped 53.0% to 18,359 units, and Buick sales declined 33.0% to 9,455 units.
Non-core brand total sales reflected the impact of the Cash for Clunkers program ending and overall market demand. Pontiac sales declined 53%, Saturn was down 84%, HUMMER dropped 82%, and Saab declined 73%.
GM Certified Used Vehicles, Saturn Certified Pre-Owned Vehicles, Cadillac Certified Pre-Owned Vehicles, Saab Certified Pre-Owned Vehicles, and Hummer Certified Pre-Owned Vehicles posted a double-digit drop in sales for September 2009.
In September, GM North America produced 233,000 vehicles, including 88,000 cars and 145,000 trucks, which is down 30% from last year when the region produced 335,000 vehicles, including 162,000 cars and 173,000 trucks.
At the end of September, about 424,000 vehicles were in stock, down 41% over last year. There were about 157,000 cars and 267,000 trucks, including crossovers, in inventory at the end of month.
For the year-to-date period, GM's U.S. vehicle sales fell 36.4% to 1.55 million units from 2.43 million units in the same period last year. Car sales for the period dropped 35.2% to 672,882 units, while truck sales slid 37.4% to 874,069 units.
For the third quarter, GM North America produced 533,000 vehicles including 207,000 cars and 326,000 trucks, which was down 42% over a year ago. However, production volumes for the quarter have substantially increased over the first quarter, and second quarter.
Looking ahead, GM North America's fourth quarter production forecast remains at 655,000 vehicles, including 262,000 cars and 393,000 trucks, which is down 20% compared to a year ago. However, the fourth quarter production volumes represent over a 20% growth compared with the third quarter.
GM, which emerged from bankruptcy in 40 days, is taking a more "streamlined" approach in running its business. GM is shrinking its workforce to match reductions across its operations, including the shutdown of 14 U.S. plants and three warehouses by the end of 2011 and the planned sale or elimination of half its eight domestic brands. GM will concentrate on its four core brands that include Chevrolet, Cadillac, GMC, and Buick.
Last month, GM said that its board recommended the sale of a 55% controlling stake in its German unit Adam Opel GmbH and sister firm Vauxhall to a consortium led by Canadian car-parts maker Magna International Inc. (MGA, MG-A.TO).
GM agreed to spin off the Opel division along with some other divisions before the Detroit-based troubled car maker went into bankruptcy in June. Opel is the largest of GM's units and employs more than 25,000 people in Germany, and as much as 50,000 in Europe.
GM, last month, came up with a new plan to boost its vehicle sales. The automaker said it would offer a 60-day money-back guarantee to eligible buyers of new Chevrolet, Buick, GMC and Cadillac vehicles, in a bid to regain customer confidence.
The guarantee allows customers to return their vehicle to their dealer between 31 and 60 days of purchase and receive a refund of the purchase price for the vehicle. The refund program started September 14, and runs through November 30.
In order to increase its manufacturing plant utilization in the U.S., GM is adding a third shift at its Fairfax, Kansas-based, Fort Wayne, Indiana-based, and Lansing Delta Township, Michigan-based production plants. The company also said it would restore a total of 2,400 jobs at these plants. GM expects to begin phasing in the third shift in April 2010.
Among others in the industry, Ford Motor said it sold 114,655 vehicles in September, down 5.1% from 120,788 vehicles sold in the same month last year. In the Ford, Lincoln and Mercury brands, car sales fell 3.9% year over year to 38,890 units in September. Truck and van sales declined 0.9% to 44,656 units.
Daimler AG (DAI) reported that its September U.S sales for the Mercedes-Benz Cars division, Mercedes-Benz and smart combined, declined 13.4% to 17,799 units from 20,557 units last year.
Mercedes-Benz USA reported a 9.6% decline in September sales that totaled 16,985 vehicles. Sales from smart USA declined 54.2% to 814 vehicles from last year.
Another peer, Chrysler Group LLC reported that its September sales dropped 42% to 62,197 units from 107,349 units in the same month last year. Total car sales fell 43% to 17,806 units, while total truck sales decreased by 42% to 44,391 units over a year earlier.
Japanese automaker Toyota Motor reported that its U.S. sales for September declined 12.6% to 126,015 units from 144,260 units in the year-ago month.
The Toyota Division posted September sales of 108,076 units, up 15.7% from the same month last year. However, sales of Lexus Division grew 11.8% to 17,939 units from the prior year month.
Nissan North America Inc. (NSANY.PK) reported September sales of 55,393 units, down 7% from 59,565 units a year ago. Total car sales dropped 7.6% to 35,566 units, while total truck sales fell 5.9% to 19,827 units from the year-ago month.
Government intervention and the reluctance of consumers to go for guzzlers has made automakers look toward the development of fuel efficient cars. Low interest loans were sought by automakers from the US government, submitting plans to make green vehicles. Chrysler, Ford Motor. and Daimler AG are all in the process of developing electric cars.
The buzzword around the auto industry now is the hybrid electric car, which combines a conventional internal combustion engine propulsion system with an electric propulsion system. The electric powertrain is intended to achieve better fuel economy amid increasing fuel prices and fears of fossil-fuel scarcity in future, while cutting back on climate-changing greenhouse gases.
In the coming years, the auto sector expects several technology advancements in hybrid electric cars, with leading manufacturers geared up for the mass production of a variety of electric vehicles. This would definitely be a silver line of hope for the sector that looks to get rid of the troubles that shook even giants.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.