Automakers see sales fall during March

updated 8:42 p.m. ET April 1, 2008

DETROIT - Automakers reported double-digit U.S. sales declines in March as demand for trucks and sport utility vehicles plummeted and consumers held back because of concerns about gas prices, the housing slump and tightening credit.

General Motors Corp.’s U.S. sales fell 19 percent, Ford’s sales dropped 14 percent and even industry stalwart Toyota was down 10 percent compared with last March, according to figures released Tuesday. Nissan fell 4 percent, and Honda reported a 3 percent drop. Some automakers warned things could continue to worsen in the near term.

“I’d like to be able to tell you that the worst is behind us, but I really can’t give you that assurance,” Jim Farley, Ford Motor Co.’s sales and marketing chief, said in a conference call with reporters and analysts. Farley said Ford is concerned the shrinking availability of consumer credit will continue to hurt sales and that the second quarter could be more difficult than the first.

GM’s truck and SUV sales were down 22 percent in March while its car sales fell 14 percent. New vehicles like the Chevrolet Malibu were a bright spot, with sales up 17 percent, but sales of Chevrolet pickups were down 25 percent while sales of GM’s gas-guzzling Hummer brand were down 29 percent. GM’s sales were down 11 percent for the first quarter.

“There’s no question that the industry and the economy is in a weakened state,” Mike DiGiovanni, GM’s executive director of global markets and industry analysis, said in a conference call. “We expected the first three quarters to be weak, and this has exceeded what we thought.”

DiGiovanni said GM remains hopeful the federal economic stimulus package will help sales in the second half of the year.

Mark LaNeve, GM’s vice president for North American sales and marketing, said a monthlong strike by American Axle and Manufacturing Holdings Inc. that has idled or shut down 30 factories that make GM trucks, cars and SUVs has cut GM’s production by 100,000 vehicles. But he said slow sales and a high inventory before the strike has minimized the impact. LaNeve said inventory of trucks and SUVs was “more than adequate” for spring, but he wouldn’t speculate on whether the strike will impact hotter sellers like the Malibu.

“We don’t believe that it’s affected retail business one bit to date,” LaNeve said.

A 24 percent jump in sales for Ford’s popular Edge crossover couldn’t make up for falling sales of pickups and large SUVs. Ford’s truck and SUV sales dropped 16 percent versus March 2007. Sales of the Ford Expedition SUV fell 34 percent, while sales of the perennially popular F-Series pickup — which will be replaced with a new version this fall — were down 24 percent.

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