Auto Sales Drop 23.1% in Continuing Skid

Sales of domestically made cars continued a slowdown that started last month, falling 23.1% in early November compared to a year ago, the auto makers reported Tuesday.

The drop continues a trend that pushed the nation’s October retail sales down 1%, the first such decline since February.

“We’re in the midst of an automotive recession,” said analyst Scott Merlis of Morgan Stanley & Co. of New York. “For anybody in this economy, these types of (auto sales) numbers today are not funny.

“It’s scary.”

The eight major companies that make cars in the United States said they sold cars and light trucks at an average daily rate of 26,194 during the Nov. 1-10 period this year compared to a daily rate of 32,833 during the same time last year.

Analysts said the selling rate for cars and light trucks in the early November period was 5.6 million units, compared to 7 million units a year ago.

Total sales of cars and light trucks slumped 20.2% during the period, compared to early November last year. Sales of light trucks dropped 15.3%. In October, domestic car and truck sales tumbled 11.6% from the rate of October, 1988.

And early November vehicle sales were 17.3% below the rate in early October.

“It could get moderately better as the month unfolds, but it’s still going to be awfully sluggish,” said analyst Joseph Phillippi of Shearson Lehman Hutton Inc. in New York.

AUTO SALES

Nov. 1-10 % 1989 change GM 62,549 -29.1 Ford 43,808 -23.5 Chrysler 20,766 -22.5 Honda U.S. 7,431 -30.5 Mitsubishi U.S. 982 * Nissan U.S. 1,802 +22.2 Toyota U.S. 5,599 +294.0 Mazda U.S. 530 -11.8 TOTAL 143,467 -23.1

There were 9 selling days in the selling period this year and last year.

*No comparison possible.