Ford Posts 34 Percent Drop in September Sales

DEARBORN, Michigan — The gloomy mood of the U.S. auto industry continued on Wednesday, as Ford reported that September sales are down 34 percent versus a year ago. Other automakers reporting sales declines for September include Hyundai, Mercedes-Benz, Smart and Volkswagen.Ford, the first of the Detroit automakers to turn in its monthly report card, said in a statement that September was the 'lowest sales month for Ford and the industry this year.' Ford recorded its 10th straight monthly decline with the news.'Consumers and businesses are in a very fragile place,' said Jim Farley, Ford group vice president for marketing and communications. 'An already weak economy compounded by very tight credit conditions has created an atmosphere of caution.'In one positive note, Farley said the 'sell-down of the current model (Ford) F-150 is ahead of schedule, and the first shipments of the new F-150 will arrive soon at Ford dealers.'In a dire footnote to the sales reports, CNW Research said in an e-mail report that 'during the final 10 days of September, floor traffic (in auto dealerships) fell more than 50 percent versus a year ago — the worst showing since CNW began keeping track in 1986.' CNW Research's Art Spinella said, 'Manufacturer incentives aren't pulling in the crowds.'Hyundai Motor America on Wednesday announced sales of 24,765 for September, a 25 percent decrease from a year ago. Daimler AG reported that combined sales for Mercedes-Benz and Smart car dropped 9 percent for September versus a year ago.At the same time, Volkswagen of America Inc. said September 2008 sales decreased 9.4 percent over September 2007 sales.'This is the toughest economy we've seen in a long time,' said Mark Barnes, Volkswagen of America chief operating officer. However, he noted that 'we are still ahead of last year's sales.'What this means to you: If you can't get credit, you can't buy cars, a point that was dramatically brought home on Wednesday with September auto sales reports. — Anita Lienert, Correspondent

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