Early April Sales of Cars, Trucks Drop 18.4% From 1990

Sales of domestically made cars and light trucks fell 18.4% in early April, dampening hopes of a rebound in the slumping motor vehicle market.

Nine of the 10 major U.S. auto makers said Monday that they sold cars and light trucks at an average daily rate of 22,861 units from April 1 to 10. That compared to a daily average of 28,339 during the same time last year.

Analysts said the failure of sales to increase with the end of the Gulf War and the arrival of spring indicated that the weak economy continued to be the prime concern of potential auto purchasers.

Typically, sales rates rise in March and April as weather improves and Americans begin thinking of summertime road trips. Interest rates have fallen, showroom shopping is increasing, consumer confidence is improving and even the weather is getting better--all of which should be reflected in an upturn in vehicle sales.

But a recovery continues to elude auto makers.

“We’re going to have to see some signs of improvement in the economy if auto sales are going to get better,” said Michael Luckey, president of Luckey Consulting Group.