DETROIT — The Big Three’s share of the U.S. auto market hit a record low in January, casting new doubt on the ability of General Motors and Chrysler to attract car buyers and turn around their ailing companies in time to repay vital government loans.
The once-mighty trio of GM, Chrysler and Ford saw their share erode to just under 43 percent, down from 49 percent in December. That shrinking slice of the market is part of a long-term decline from around 80 percent as recently as April 1985, according to Ward’s AutoInfoBank.
Several industry analysts said U.S consumers who are buying cars are having doubts about whether Detroit car companies can stay in business and back their warranties.
At the same time, Asian automakers are offering attractive rebates and low-interest financing.
For their part, GM, Chrysler and Ford blamed the sharp decline in January sales on falling purchases from fleet companies such as rental-car firms.
“There’s still some lingering anxiety in car buyers today when they think about the future of the Detroit auto companies,” said Joe Barker, senior manager of North American vehicle-sales forecasting for CSM Worldwide, a Northville, Mich., consulting firm.
Ford’s top sales analyst, George Pipas, said U.S. fleet sales in January fell 60 percent from the same month a year ago. That hit the Big Three especially hard since they traditionally have sold more cars to rental companies than their foreign competitors.
As Detroit’s market share fell, Asian automakers gained, with share rising to 49.5 percent last month from 41.8 percent in January 2008.
With the market shifting rapidly every month, it’s difficult to tell if Detroit’s market- share drop will persist, said Diane Elnick, an industry analyst with Ward’s Automotive.
She said Asian manufacturers, particularly Hyundai and Kia, had big rebate and financing deals available for cars and crossover vehicles, areas of the market that sold relatively well last month.
“The foreign automakers are outdealing the Detroit Three right now,” she said.
