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![]() U.S. auto sales fell 36.7 percent in November, their lowest level since October 1982. The dire sales figures arrive as Detroit's auto executives head to Capitol Hill this week to ask Congress for up to $34 billion in emergency loans to help them through the worst auto market in decades. The auto companies' sales are reeling from tough economic times, spurred by the Wall Street meltdown, the subsequent tightening of the credit market and consumers moving from larger vehicles to more fuel efficient smaller ones. Consumers also remained wary of the down economy and postponed big ticket purchases. Dismal sales reports came from all corners, with the top six carmakers reporting double-digit losses in the United States. Chrysler LLC's November sales fell a staggering 47.1 percent; General Motors Corp.'s sales dropped 41.3 percent; and Ford Motor Co.'s were down 30.5 percent, according to Autodata Corp. Ford and GM announced Tuesday they would slash by one-third their first-quarter production in 2009. Japan's automakers also reported dramatic sales declines, led by Nissan Motor Co., whose sales were down 42.2 percent; Toyota Motor Corp. saw sales fall 33.9 percent; and Honda Motor Co.'s sales fell 31.6 percent. Like retailers of other expensive purchases, automakers have taken a beating in recent months as worries about the economy and unemployment have prompted consumers to slash spending. At the same time, some people afraid that they won't qualify for credit or that it will be too costly have put purchases on hold. On Monday, the National Bureau of Economic Research said the U.S. entered a recession in December 2007, much earlier than most predictions. November's seasonally adjusted annual sales rate of 10.18 million vehicles was the worst in more than 25 years and far below the rate of 16 million a year earlier, according to Autodata. Vehicle sales are down 16.3 percent for the year, with all manufacturers selling 12.3 million vehicles through November in the United States. Many analysts had expected better November sales because of aggressive incentive spending and the thought that the plunge in gas prices may have put a floor under sales. "The carnage was widespread," said Mark LaNeve, vice president for GM North America vehicle sales, service and marketing. Mike DiGiovanni, GM's executive director of global market analysis, blamed GM's sharp sales decline on the global economic crisis and the credit squeeze. "What we are facing is not a General Motors problem; what we are facing is an industry problem," DiGiovanni said. "We are seeing further deterioration in the industry into November." GM's car sales dropped 44.1 percent and truck sales were off 39.4 percent compared with the same month last year. For the year, GM's overall U.S. sales have fallen 21.9 percent. All eight of GM's brands have seen significant sales drops in 2008.Chrysler offered few highlights for its November sales other than that it cut its fleet sales by 63 percent when compared with last November. Most vehicles saw dramatic losses when compared with last November: The Dodge Caliber and Avenger were down 56.4 percent and 76.9 percent, respectively. Only the low-volume Dodge Viper and Chrysler Aspen showed improved sales. Jim Farley, Ford Motor Co.'s group vice president of marketing, said he expects the industry to post continued year-over-year declines in auto sales until at least the second half of 2009. "We could see some strengthening in the second half of next year, or at least some stabilization, albeit at a much lower level," Farley said in a conference call. Nissan, Toyota and Honda's sales declines reflect how tough the market has become for every automaker. Even Toyota's hot-selling hybrids stumbled, with Prius sales dropping 48.3 percent compared with the same month last year. Prius sales are down 9.9 percent for the year. Honda showed similar results with only its redesigned large SUV Honda Pilot as the sole vehicle showing a sales increase in November, up 241 vehicles or 4.5 percent. However, the No. 2 Japanese automaker in the U.S. has weathered the downturn better than most, in part because it has never offered a V-8. Its overall sales in the U.S. have fallen 5.4 percent for the year and it has seen a 2.2 percent increase in car sales for the year. Nissan's truck sales dropped 49 percent in November and its car sales fell 37.3 percent. Ford said while the overall market declined, it expected to pick up some market share. However, those gains will not help Ford continue to produce as many vehicles as it has in the past. Ford announced it would cut production in the first quarter of 2009 by 38 percent from the 692,000 vehicles it produced last year during the first quarter to 430,000 for the first quarter next year. GM also announced it would scale back its first-quarter production next year. GM projects it will build 600,000 vehicles during the first quarter, down 32 percent compared with the 2008 figures.
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