General Motors automobile sales plunge by 45%

April 1, 2009

General Motors Corporation (GM) announced on Wednesday that it saw a 45% drop in United States vehicle sales for its cars in March.

Executives from several auto firms, however, said that there was some hope for the auto industry to stabilise, as car sales rebounded in the last week of March.

"The market is starting to show small signs of life which need to be nourished like seedlings," said the vice president and chairman of Chrysler LLC Jim Press. "It's too early to see a trend, but spring shows signs of hope."

Other automobile manufacturers also saw their car sales slip: Chrysler and the Japanese Toyota both reported a 39% loss, whilst Ford Motor Company sales fell 41%.

Annualised sales of vehicles in the car industry in the US are predicted to have dipped below nine million in March, compared to February's 9.12 million, which was the lowest number since 1981.

"Auto makers are pulling every lever in their effort to attract buyers, as evidenced by the new programs from Ford and GM. The typical incentive programs simply do not resonate in today's economy," Jesse Toprak, an analyst for Edmunds.

Ford shares gained 2.3% to a level of US$2.69 in early trading at US stock markets on Wednesday, while stocks for Toyota's US depository increased 5.9% to $67. GM shares slipped 1.6% down to $1.92.