DETROIT — Automakers began 2008 expecting the worst year for U.S. auto sales in a decade. So far, they’re getting what they anticipated.
Sales dropped by double digits in March, even for usual stalwarts like Toyota. And with fragile consumer confidence, falling home values, tightening credit and high energy prices, it may be some time before auto sales recover.
General Motors and Chrysler both reported a 19 percent drop in U.S. sales Tuesday. Ford’s sales fell 14 percent and Toyota was down 10 percent compared with last March. Nissan fell 4 percent, and Honda reported a 3 percent drop.
If the March sales rate held steady for the full year, U.S. sales would be 15.1 million units in 2008, according to Auto data. That’s down from a rate of 16.2 million units last March, and the lowest monthly sales rate since October 2005, when a summer of heavy discounts hurt fall sales.
GM remained upbeat, saying demand is building up and the federal economic stimulus package could help boost sales in the second half of the year.
“We hope we are in the trough and we are now gradually coming back,” Mike DiGiovanni, GM’s executive director of global markets and industry analysis, said in a conference call.
The introduction of high-volume products this fall, including the new Ford F-Series and Dodge Ram pickups, also should boost sales. But most automakers seemed resigned to more tough times ahead.
“I’d like to be able to tell you that the worst is behind us, but I really can’t give you that assurance,” said Jim Farley, Ford’s sales and marketing chief.
Farley said Ford is concerned that the shrinking availability of consumer credit will hurt sales and that the second quarter could be more difficult than the first.
Jesse Toprak, chief industry analyst for the auto information site Edmunds , said consumers’ lack of confidence is the top reason for this year’s lackluster sales.
“It’s not because people can’t afford to buy a car. It is because they don’t know what’s going to happen and they’ve lost trust in the stability of the economy,” he said.
Small cars fared best in March as consumers focused on fuel efficiency. Sales of the Ford Focus jumped 24 percent for the month, while Toyota’s subcompact Yaris saw sales rise 83 percent and Honda’s subcompact Fit surged 74 percent.
