November Auto Sales Continue Their Death Spiral, With No End in Sight

DETROIT — In a depressing roll call, automakers on Tuesday began reporting devastatingly low November sales numbers. Ford reported a November sales plunge of 30 percent versus a year ago, while Toyota said its November sales in the U.S. were down 33.9 percent from last November. General Motors said November sales were down 41 percent compared with a year ago.'Every manufacturer is posting awful numbers, and we are no exception,' said Mark LaNeve, GM North America vehicle sales, service and marketing vice president. 'The global economic crisis and credit freeze have had a very negative impact on the vehicle market which runs on consumer confidence and available financing.'The grim November sales picture emerged at the start of a pivotal week for Detroit's automakers. Ford, GM and Chrysler will make their second pitch this week in Washington, D.C., as they seek federal financial help and work to convince lawmakers that the wolf is indeed at the door. Ford issued its sales report just hours after making its formal presentation to lawmakers public.'The economy continues to weaken and auto sales reflect this reality,' said Jim Farley, Ford group vice president, marketing and communications, in a statement. He added: 'We believe the economy will continue to weaken in 2009.'Farley's words were echoed in Herndon, Virginia, where Mark Barnes, Volkswagen of America's chief operating officer, said: 'This is the toughest economic environment we've seen in a long time, and it presents a significant challenge.' He added: 'Nevertheless, our clean diesel TDIs continue to sell very well even in this tough economy and represented 17 percent of our monthly sales.' Volkswagen of America said November 2008 sales dropped 19.2 percent versus a year ago.American Honda posted November sales of 76,233, a decline of 31.6 percent versus November 2007. The Acura division recorded a November sales decrease of 38.9 percent compared with November 2007. Acura's rival Lexus did not fare much better. Toyota said Lexus recorded a drop of 40 percent versus November 2007.At the same time, Edmunds.com estimated on Tuesday that the average automotive manufacturer incentive in the U.S. was $2,625 per vehicle sold in November 2008, down $52, or 1.9 percent, from October 2008, but up $346, or 15.2 percent, from November 2007.'All three domestic automakers lowered their incentive spending this month, seeking to preserve cash during these incredibly tough times,' said Jesse Toprak, Edmunds.com executive director of industry analysis. 'Meanwhile, the imports have poured more money into incentives, attempting to seize the opportunity to gain market share. Toyota's monthly incentives spending hit a new record high in November, and the company's market share might follow suit.'The terrible November sales numbers come a day after the National Bureau of Economic Research declared that the economy slipped into recession in December 2007.Inside Line says: The unbelievably bad November sales report may be yet another bit of ammunition that Detroit can use as it makes its case this week in Washington. — Anita Lienert, Correspondent

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