Car Sales Fall Sharply in Mid-December
Underscoring the White House’s admission Wednesday that the U.S. economy is in a recession, the auto industry reported a sharp, broad-based, 19% decline in mid-December sales of U.S.-produced cars and trucks compared to the same period in 1989, when sales also were weak.
Americans bought an average of 20,487 North American-built cars and trucks a day Dec. 11-20, compared to an average daily rate of 25,795 cars during the same 10 days in 1989. The results reflected the drop in consumer confidence since Iraq invaded Kuwait on Aug. 2.
Led by Chrysler Corp.’s 29.1% decline, the Big Three U.S. auto makers posted a combined 20.6% decrease in vehicle sales for the period. Car sales slipped 18.9%; truck sales fell 22.8%
Sales of Asian auto makers’ cars produced in the United States, which had been holding up better than those of their U.S. rivals, fell a combined 9.9%.
Even Honda, whose top-selling Accord has resisted the downward pull of the market, reported a steep 43.2% drop in car sales. Honda spokesman Kurt Antonius said there was no explanation for mid-December’s results except the state of the economy.
“We guess it’s just consumer uncertainty over the market and the Mideast crisis,” Antonius said.
The bright spot in the performance results was reserved for Nissan, which recorded an 85.2% increase in vehicle sales.
General Motors Corp. said mid-December car sales were down 18% for the period, Ford Motor Co. reported a 21% drop and Chrysler posted a 19% decline.
Auto makers are to report their final 1990 sales results Friday. For the year ahead, auto analysts and company executives estimate that car and truck sales will fall another 5%, with all bets off if there is war in the Middle East.
VEHICLE SALES
Dec. 11-20 % change 1990 year to year GM* 94,155 -17.0 Ford* 57,946 -20.9 Chrysler* 32,278 -29.1 Honda U.S. 6,384 -43.2 Mitsubishi U.S. 1,092 +55.6 Nissan U.S.* 4,838 +32.3 Toyota U.S. 6,270 -10.6 Mazda U.S. 1,445 +46.7 Subaru U.S. 1,657 ** Isuzu U.S.* 1,215 ** TOTAL 127,933 -17.7
*Includes light truck sales.
**No comparison possible.
There were 9 selling days in the selling period this year and last year.
