Auto industry girds for chilling Dec. sales report

[Omaha Steve]

http://apnews.excite.com/article/20090102/D95F8GG00.html

By DAN STRUMPF

(AP) The discount pricing available is advertised on a placard placed on the side of an unsold 2008...
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NEW YORK (AP) - The good news for the auto industry in December came when General Motors and Chrysler got their federal bailout. The bad news is coming Monday, when automakers are expected to report another month of staggering sales declines.

Many analysts are predicting the industry to report that U.S. sales in December dropped about 40 percent, bringing an official close to what has been one of the industry's most trying years and providing little hope for much improvement in 2009.

"I'm off the same 40 percent that everyone else is," said David Kelleher, owner of two Chrysler dealerships in the Philadelphia area. "I've had to downsize quickly to get in front of this. We're hanging in there."

The auto Web site Edmunds.com is predicting December sales of 852,000 light vehicles in the U.S., down 38 percent. Deutsche Bank auto analyst Rod Lache predicted a sales drop of 41 percent to a seasonally adjusted annual rate of 9.5 million. That figure reflects what sales would be if they remained at that month's pace all year, with adjustments for seasonal fluctuations.

"All the negative factors that were with us the last three months will still have an impact on sales in December as well," said Jesse Toprak, executive director of industry analysis for Edmunds.

U.S. auto sales fell 37 percent to 746,789 in November, their lowest level in more than 26 years, as skittish consumers avoided big purchases, unemployment and home foreclosures rose, and tight credit markets made it difficult for some willing buyers to obtain loans.

FULL story at link.

[spindrifter]

1. Nothing was selling in December, so this is no

surprise.