Tuesday, July 1, 2008

Auto sales plunge - Buyers flee SUVs and pickups but can't find the cars they want, resulting in steep declines at most automakers.

June auto sales plunged, according to reports from the nation's major automakers, as Americans shunned pickups and SUVs in the face of record gas prices.

General Motors (GM, Fortune 500) reported that its U.S. sales fell 18% in June versus a year ago. Sales of GM's light trucks, which includes pickups, SUVs and so-called crossovers, tumbled 16%. GM's car sales dropped 21% in the month.

Still, the results were better than forecasts of an overall 25% decline in sales. And it was good enough for GM to hang onto the title of the No. 1 automaker in terms of U.S. sales.

Toyota Motor (TM) reported a 21% drop in U.S. sales in June from a year ago, far worse than the forecast from Edmunds.com of only a 12% drop in sales. It was the biggest year-over-year decline in U.S. sales in 10 years for Toyota.

Ford Motor (F, Fortune 500), the No. 3 automaker in terms of U.S. sales, posted a 28% decline in sales -- steeper than Edmunds.com's forecasts of a 25% drop. Ford saw demand for its SUVs plunge by more than half and for pickups and other trucks fall more than a third.

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