Crisis slamsautos2
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K CMY 2A THURSDAY, OCT. 2, 2008 ◆ DETROIT FREE PRESS | WWW.FREEP.COM The Free Press corrects all errors of fact. If you know of an error, please call the news- room at 313-222-6600. ❚ A front-page article Monday incorrectly cited state investi- gators as saying Detroit Edi- son and Consumers Energy appeared at times incompe- tent and indifferent in re- sponse to the needs of custom- ers left without electricity in a massive outage in June. Cus- tomers expressed those kinds of sentiments in remarks that were included in a Michigan Public Service Commission re- port on the outage. Getting it straight Michigan Wednesday Daily 3 and 4 Midday ...................534 and 3092 Evening ..................221 and 3684 Fantasy 5 .................3, 8, 19, 28, 38 Classic Lotto 47....4, 22, 23, 32, 40, 46 Keno 5, 9, 11, 12, 15, 17, 26, 31, 32, 37, 44, 49, 51, 54, 63, 64, 69, 71, 72, 74, 76, 79 Friday’s Mega Millions jackpot.$42 million Ohio Wednesday Pick 3 and 4 Midday ...................648 and 2467 Evening ..................190 and 8689 Classic Lotto......4, 9, 27, 31, 42, 44 Rolling Cash 5......19, 31, 32, 33, 35 Wednesday Ten-Oh Numbers Midday 5, 12, 19, 24, 27, 33, 36, 38, 41, 42, 44, 46, 48, 49, 53, 60, 61, 67, 71, 77 Evening 2, 8, 10, 12, 13, 21, 25, 28, 29, 39, 40, 44, 46, 55, 59, 60, 67, 76, 78, 80 Lottery results “We do anticipate them being on time and on schedule.” MEAGAN PITTS, spokeswoman for Detroit Mayor Ken Cock- rel Jr., after Detroit bus rid- ers were stranded Wednes- day during what she called a protest by bus drivers. A union official disputed a walk- out. STORY, 5B OVERHEARD MSU students aid ‘Extreme Makeover’ LOCAL NEWS, 3B Foreclosures to rise, Oakland Co. official says BUSINESS, 1D Flaws found with some booster seats NATION/WORLD, 6A IN TODAY’S FREE PRESS See our Emmy winners! Free Press staffers won two national Emmys last week for videos on pit bulls and Aretha Franklin’s hit “Respect.” See them both at freep.com/emmys. FREEP.COM: POWERED BY YOU AND THE FREE PRESS On MomsLikeMe.com: The credit crunch From mortgage woes to skyrocket- ing credit card rates, moms talk about how the financial crisis is affecting them. RUTH TO THE RESCUE Avoid being taken by furnace scam artists The Michigan Department of Labor and Economic Growth is warning resi- dents: Don’t sign up to pay for expensive new furnace equipment because a heating and cooling contractor says your furnace is dangerous. Instead, ask for a written copy of the contractor’s furnace test result, then imme- diately call your gas company to verify any carbon monoxide risk. - RUTH SPENCER, LOCAL 4 NEWS Find previous Michigan numbers on the Web at www.michigan.gov/lottery Find previous Ohio numbers on the Web at www.ohiolotttery.com JUMP START (USPS 155-500) (ISSN 1055-2758) Published daily by the Detroit Free Press at 615 W. Lafayette Blvd., Detroit, MI 48226 PERIODICALS POSTAGE PAID AT DETROIT, MI, AND ADDITIONAL OFFICES CUSTOMER SERVICE: 1-800-395-3300 6 a.m.-6:30 p.m. Mon.-Fri.; 7 a.m.-1 p.m. Sat.-Sun. To order Free Press books, posters: 1-800-245-5082 FREE PRESS NEWSROOM PHONE NUMBERS Local News ................................................. 313-222-6600 Editorial Page ............................................. 313-222-6583 Sports ........................................................ 313-222-6660 Life ............................................................ 313-222-6610 Entertainment ............................................ 313-222-6610 Business News ........................................... 313-222-8765 DETROIT MEDIA PARTNERSHIP Classified advertising .................................. 586-977-7500 TOLL FREE............................................ 1-800-WANT-ADS Display advertising...................................... 313-222-2700 All other departments ................................. 313-222-6400 Telecommunication Device for Deaf .............. 313-222-2576 MONTHLY HOME DELIVERY RATES Wayne, Oakland, Macomb, Livingston, Washtenaw Monroe, St. Clair, Lapeer, Genesee All Other Areas 7-days (Monday-Sunday) ............. $14.13.... $19.50.. $23.18 6-days (Monday-Saturday)............ $9.78.... $13.00.. $15.60 5-days (Monday-Friday) ................ $8.69.... $10.83.. $13.00 Weekend (Thu.-Sunday)* ............ $10.22.... $10.83.. $10.83 Sunday* ...................................... $9.13...... $8.67.... $8.67 NEWSSTANDS: Wayne, Oakland, Macomb: Daily $0.50; Sunday $1.50 All other counties: Daily $0.75; Sunday $1.75 In some areas, independent contractor rates may vary. All subscriptions are continuous. *HOLIDAY/BONUS DAYS (Sunday and weekend subscribers in Wayne, Oakland, Macomb, Livingston, Washtenaw, Monroe) In 2008, Sunday and weekend subscribers in these counties will receive the following holiday/bonus day editions as part of their subscriptions billed at up to 40¢ each: January 1, January 21, February 18, March 17, March 21, May 12, May 26, July 7, August 25, September 1, October 13, November 5, November 27, December 25. Additional bonus days may be added, based upon story developments or anticipated reader interest, not to exceed 20 holiday/bonus days in 2008. MAIL SUBSCRIPTION RATES Within the state of Michigan Daily and Sunday Daily only Sunday only 52 weeks .............. $520.00.......... $369.20............. $176.80 26 weeks ................ 260.00............ 184.60................ 88.40 13 weeks ................ 130.00............. 92.30................ 44.20 4 weeks................... 40.00............. 28.40................ 13.60 Outside Michigan 52 weeks .............. $556.40.......... $397.80............. $184.60 26 weeks ................ 278.20............ 198.90................ 92.30 13 weeks ................ 139.10............. 99.45................ 46.15 4 weeks................... 42.80............. 30.60................ 14.20 Foreign rates furnished upon request. The Free Press is printed partially on recycled newsprint. Postmaster, please send address changes to: Mail Subscription Department 615 W. Lafayette Boulevard Detroit, MI 48226 DETROIT MEDIA PARTNERSHIP, OFFICERS David L. Hunke, Chief Executive Officer .........313-222-8777 Susie Ellwood, EVP & General Manager .........313-222-2149 Joyce Jenereaux, Sr. VP/Finance...................313-222-8891 Janet Hasson, Sr. VP/ Audience Development & Strategy ............313-222-2373 Rich Harshbarger, VP/Consumer Marketing ..313-222-6694 Keith Pierce, Sr. VP/Operations....................313-222-2386 Rebecca Steckler, Sr. VP/Advertising ............313-222-2274 Michael Quinn, VP/Logistics.........................586-826-7087 Patricia Kelly, VP/ Digital Development & Client Solutions .....313-222-6504 Jeff Kapuscinski, VP/Strategic Planning........313-222-2432 Kristi Bowden, VP/Human Resources............313-222-2061 John Jackson, VP/Digital Sales 313-222-2424 Mark Brown, Controller ................................313-222-5108 Dale Parry, Publisher/Signature Media..........313-222-6549 Effective 9.1.08 Your Free Press store ❚ Order Free Press books, posters and T-shirts, including our new 2008 Stanley Cup poster: www.freep.com/bookstore or 800-245-5082. ❚ Order Free Press photo reprints or full-page reprints: www.freep.com/reprints. “It’s tough to sell anything.” In all, U.S. consumers bought just 964,873 cars and trucks last month, a drop of 26.6% from the same month a year ago. Monthly auto sales usually break the million mark, and September’s dismal result was the worst sales month on rec- ord since 1993, according to Autodata Corp. of Woodcliff Lake, N.J. No automaker — foreign or domestic — was spared pain. Sales were down a breath- taking 36.8% at Nissan Motor Co., 34.5% at Ford Motor Co., 32.8% at Chrysler LLC and 32.3% at Toyota Motor Corp. Even Honda Motor Co., which had been a top perform- er all year with its fuel-efficient lineup, posted a 24% decline. “Obviously, no one is im- mune to market shifts as dra- matic as we have been seeing,” Dick Colliver, executive vice president of sales for Honda in America, said in a statement. General Motors Corp. also managed to post a better-than- industry performance. Its sales fell just 15.6%, allowing GM to capture an impressive 29% of the market last month. “GM performed extremely well in tough market condi- tions,” Mark LaNeve, GM’s vice president of North Ameri- can sales, service and market- ing, said during a conference call with journalists. “You have to remember these numbers are relative. These numbers, a few years ago, I would have jumped out the window with these numbers — and we’re on the 39th floor here” at the Re- naissance Center in Detroit. GM achieved most of that performance by selling large numbers of cars and trucks in- to the fleet market, where au- tomakers sell vehicles in bulk at discount to rental-car com- panies and other businesses. GM’s retail sales were down 26% despite a nationwide em- ployee-pricing promotion. Future uncertain Heading into September, the U.S. economy was already under siege because of deepen- ing crises in the housing, credit and energy sectors. However, many industry in- siders were hopeful that Au- gust sales, which came in at 1.3 million vehicles, were rock- bottom and that the industry was headed toward a recovery. But after automakers re- vealed their September re- sults, few were willing to pre- dict the future. “I don’t think anyone can say where the bottom might be,” Ford’s senior U.S. econo- mist, Emily Kolinski Morris, said during a conference call with journalists. “Clearly, we are looking at a very fragile economy,” she said. Mike DiGiovanni, chief sales analyst for GM, said the industry’s awful auto sales last month highlight the need for Congress to pass a financial rescue package soon. “The sooner we get this sorted out, the better we’ll all be,” he said. “If it doesn’t hap- pen, it’s going to set off some continuing spiraling down in the economy. … We feel it’s critical.” Jackson, the nation’s larg- est auto dealer, agreed. “We need an official an- nouncement … the sky is not going to fall,” he said. “The trust is broken. The psycholo- gy has turned negative, and we now need an event to turn it back.” It that doesn’t happen, Jackson said Main Street would continue to feel the squeeze from Wall Street’s woes, and the industry should expect auto sales to sputter along at weak levels for the foreseeable future. But he was holding out hope that Congress would pass a bailout plan and the president would sign it by week’s end. “At least we’ll be on the road to better days,” Jackson said. A silver lining? While most automakers blamed the intensification of falling auto sales on the declin- ing availability of credit, one Michigan mega-dealer said he viewed the tightening of mon- ey as a good thing. Joseph Serra, whose Grand Blanc-based Serra Automo- tive owns 21 new-car dealer- ships in six states, said the pull- back in lending that he has wit- nessed has been a responsible reaction to a market that had become far too freewheeling in recent years. He said lenders are making sure buyers can really afford what they are attempting to purchase now. “Things got too loose,” said Serra, who was educated as an accountant and also is the se- nior cochairman of the North American International Auto Show in Detroit. “Sometimes, a lot of good can come out of bad situa- tions,” he said. “I’m a believer: Bad habits are created in good times, and good habits are cre- ated in bad times. … “We’re going to get back to doing things right.” Contact SARAH A. WEBSTER at 313-222-5394 or swebster @freepress.com. Business writers Tim Higgins, Katie Merx and Brent Snavely contributed to this report. SALES ❘ Carmakers feel the squeeze as economy worsens From Page 1A Preps Extra Follow your team every Friday. 05my0022cmfp_f September auto sales U.S. light-vehicle sales totals, individual automaker results and market share for September compared to September 2007: SEPTEMBER 2008 Maker volume % change from 2007 % mkt share YTD volume % change from 2007 YTD % mkt share GM 282,806 -15.6% 29.3% 2,412,666 -17.8% 22.4% Toyota 144,260 -32.3% 15.0% 1,793,303 -10.4% 16.7% Ford 120,355 -34.5% 12.5% 1,587,670 -17.4% 14.8% Chrysler 107,349 -32.8% 11.1% 1,183,519 -25.0% 11.0% Honda 96,626 -24.0% 10.0% 1,180,583 -1.1% 11.0% Nissan 59,565 -36.8% 6.2% 785,698 -3.4% 7.3% Volkswagen 24,937 -8.2% 2.6% 243,997 -1.3% 2.3% Hyundai 24,765 -25.4% 2.6% 337,664 -5.8% 3.1% Mercedes 18,792 -16.4% 1.9% 177,485 -1.7% 1.6% BMW 18,525 -25.8% 1.9% 236,615 -4.8% 2.2% Kia 17,383 -27.8% 1.8% 228,088 -1.7% 2.1% Mazda 16,169 -35.6% 1.7% 215,408 -5.7% 2.0% Subaru 14,491 -11.9% 1.5% 143,789 3.8% 1.3% Mitsubishi 7,378 -39.0% 0.8% 80,105 -24.3% 0.7% Suzuki 4,083 -46.6% 0.4% 74,513 -9.1% 0.7% Jaguar Land Rover 3,591 -31.6% 0.4% 35,261 -26.7% 0.3% Smart USA 1,778 NA 0.2% 18,156 NA 0.2% Porsche 1,458 -44.8% 0.2% 21,076 -19.8% 0.2% Isuzu 258 -54.3% 0.0% 4,188 -24.3% 0.0% Maserati 199 30.1% 0.0% 1,930 14.9% 0.0% Ferrari 105 -3.7% 0.0% 1,234 -5.3% 0.0% TOTAL 964,873 -26.6% 100.0% 10,762,948 -12.8% 100.0% GM includes Buick, Cadillac, Chevrolet, GMC, Hummer, Pontiac, Saab and Saturn. Ford includes Lincoln, Mercury and Volvo. Chrysler includes Chrysler, Dodge and Jeep. Volkswagen includes Audi and Bentley. BMW includes Mini and Rolls-Royce. Toyota includes Lexus and Scion. Honda includes Acura. Nissan includes Infiniti. Figures are not adjusted for selling days. Source: Autodata Corp. Top 20 vehicles for September The worst sales month since February 1993 saw little to cheer about. Sept. 2008 % change 2008 YTD % change Chevrolet Silverado 50,428 -3.9% 370,502 -22.5% Ford F-Series 32,727 -41.6% 392,698 -26.9% Toyota Camry 29,486 -27.1% 355,562 -2.6% Chevrolet Impala 27,143 17.1% 209,734 -16.0% Honda Accord 22,371 -36.1% 313,228 3.8% Honda Civic 21,577 -12.8% 285,715 12.1% Toyota Corolla / Matrix 21,316 -27.9% 279,685 -4.2% Dodge Ram 20,812 -30.9% 196,058 -29.2% Chevrolet Malibu 19,725 79.0% 139,390 50.8% GMC Sierra 18,744 1.6% 133,811 -14.9% Chevrolet Cobalt 16,521 -16.5% 162,462 6.3% Nissan Altima 16,043 -42.4% 223,776 2.6% Honda CRV 15,928 -19.4% 158,024 -5.5% Dodge Caravan 11,056 6.1% 102,398 -21.5% Toyota Prius 10,873 -13.0% 130,561 -4.8% Honda Odyssey 10,783 -34.5% 112,041 -14.0% Ford Focus 10,346 4.7% 165,382 24.3% Pontiac G6 10,326 -8.5% 119,706 8.4% Toyota RAV4 10,305 -28.5% 106,738 -19.1% Ford Fusion 9,942 -16.9% 117,545 4.5% Source: Autodata Corp. Made in Michigan Here is how vehicles assembled in Michigan sold last month. Note that some models are also made elsewhere. Vehicle City Sept. 2008 % change YTD 2008 % change GENERAL MOTORS Buick Enclave Lansing 5,171 26.7% 36,900 123.9% Buick Lucerne Detroit/Ham- tramck 6,239 -26.6% 43,839 -32.0% Cadillac CTS Lansing 4,360 -32.0% 47,479 24.7% Cadillac DTS Detroit/Ham- tramck 3,381 -29.2% 25,790 -32.4% Cadillac SRX Lansing 848 -48.8% 12,863 -24.0% Cadillac STS Lansing 856 -46.9% 12,621 -14.5% Chevrolet Silverado Flint, Pontiac 50,428 68.2% 140,555 36.5% Chevrolet Malibu Orion 19,725 -3.9% 370,502 -22.5% GMC Acadia Lansing 6,015 -0.1% 57,018 7.9% GMC Sierra Pontiac 18,744 1.6% 133,811 -14.9% Pontiac G6 Orion 10,326 -8.5% 119,706 8.4% Saturn Outlook Lansing 2,803 5.5% 21,403 -17.0% FORD Ford Expedition Wayne 3,645 -37.4% 43,272 -39.2% Ford F-Series Dearborn 32,727 -41.6% 392,698 -26.9% Ford Focus Wayne 10,346 4.7% 165,382 24.3% Ford Mustang Flat Rock 4,910 -52.2% 78,871 -28.2% Lincoln Mark LT Dearborn 383 -51.8% 3,659 -45.0% Lincoln Navigator Wayne 1,012 -48.5% 11,737 76.4% CHRYSLER Chrysler Sebring Sterling Heights 5,450 -10.0% 61,428 -10.0% Dodge Avenger Sterling Heights 4,500 -45.9% 53,828 -9.0% Dodge Dakota Warren 622 -85.1% 21,626 -47.7% Dodge Ram Warren 20,812 -30.9% 196,058 -29.2% Dodge Viper Detroit 86 258.3% 872 150.6% Jeep Grand Cherokee Detroit 4,565 -56.2% 57,333 -38.5% Jeep Commander Detroit 1,590 -64.7% 22,654 -54.8% OTHERS Mazda6 Flat Rock 3,694 -3.9% 42,237 -4.1% Mitsubishi Raider Warren 309 -88.2% 2,018 -69.5% Source: Autodata Corp. At freep.com: As sales decline, incentives increase
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Transcript of Crisis slamsautos2
KC M Y
2A THURSDAY, OCT. 2, 2008 � DETROIT FREE PRESS | WWW.FREEP.COM
The Free Press corrects allerrors of fact. If you know of anerror, please call the news-room at 313-222-6600.� A front-page article Mondayincorrectly cited state investi-gators as saying Detroit Edi-son and Consumers Energyappeared at times incompe-tent and indifferent in re-sponse to the needs of custom-ers left without electricity in amassive outage in June. Cus-tomers expressed those kindsof sentiments in remarks thatwere included in a MichiganPublic Service Commission re-port on the outage.
Getting it straight
MichiganWednesday Daily 3 and 4
Midday ...................534 and 3092Evening..................221 and 3684
Fantasy 5.................3, 8, 19, 28, 38Classic Lotto 47....4, 22, 23, 32, 40,46Keno5, 9, 11, 12, 15, 17, 26, 31, 32,37, 44, 49, 51, 54, 63, 64, 69, 71,72, 74, 76, 79Friday’s Mega Millions jackpot.$42million
OhioWednesday Pick 3 and 4
Midday ...................648 and 2467Evening..................190 and 8689
Classic Lotto......4, 9, 27, 31, 42, 44Rolling Cash 5......19, 31, 32, 33, 35Wednesday Ten-Oh Numbers
Midday 5, 12, 19, 24, 27, 33, 36,38, 41, 42, 44, 46, 48, 49, 53, 60,61, 67, 71, 77
Evening 2, 8, 10, 12, 13, 21, 25,28, 29, 39, 40, 44, 46, 55, 59, 60,67, 76, 78, 80
Lottery results
“We doanticipate thembeing on timeand on schedule.” MEAGAN PITTS, spokeswomanfor Detroit Mayor Ken Cock-rel Jr., after Detroit bus rid-ers were stranded Wednes-day during what she called aprotest by bus drivers. Aunion official disputed a walk-out. STORY, 5B
OVERHEARD
MSU studentsaid ‘ExtremeMakeover’
LOCAL NEWS, 3B
Foreclosures torise, OaklandCo. official says
BUSINESS, 1D
Flaws foundwith somebooster seats
NATION/WORLD, 6A
IN TODAY’S FREE PRESS
See our Emmy winners!Free Press staffers won two national Emmyslast week for videos on pit bulls and ArethaFranklin’s hit “Respect.” See them both atfreep.com/emmys.
FREEP.COM: POWERED BY YOU AND THE FREE PRESSOn MomsLikeMe.com:The credit crunchFrom mortgage woes to skyrocket-ing credit card rates, moms talkabout how the financial crisis isaffecting them.
RUTH TO THE RESCUEAvoid being taken by furnace scam artistsThe Michigan Department of Labor and Economic Growth is warning resi-dents: Don’t sign up to pay for expensive new furnace equipment becausea heating and cooling contractor says your furnace is dangerous. Instead,ask for a written copy of the contractor’s furnace test result, then imme-
diately call your gas company to verify any carbon monoxide risk. - RUTH SPENCER, LOCAL 4 NEWS
Find previous Michigan numbers onthe Web atwww.michigan.gov/lotteryFind previous Ohio numbers on theWeb at www.ohiolotttery.com
JUMP START(USPS 155-500) (ISSN 1055-2758)
Published daily by the Detroit Free Pressat 615 W. Lafayette Blvd., Detroit, MI 48226
PERIODICALS POSTAGE PAID AT DETROIT, MI,AND ADDITIONAL OFFICES
CUSTOMER SERVICE: 1-800-395-33006 a.m.-6:30 p.m. Mon.-Fri.; 7 a.m.-1 p.m. Sat.-Sun.
To order Free Press books, posters: 1-800-245-5082
FREE PRESS NEWSROOM PHONE NUMBERSLocal News ................................................. 313-222-6600Editorial Page ............................................. 313-222-6583Sports ........................................................ 313-222-6660Life............................................................ 313-222-6610Entertainment ............................................ 313-222-6610Business News ........................................... 313-222-8765
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MONTHLY HOME DELIVERY RATESWayne, Oakland,
Macomb, Livingston,
Washtenaw
Monroe,St. Clair,Lapeer,
Genesee
All OtherAreas
7-days (Monday-Sunday) .............$14.13.... $19.50.. $23.186-days (Monday-Saturday)............ $9.78.... $13.00.. $15.605-days (Monday-Friday)................ $8.69.... $10.83.. $13.00Weekend (Thu.-Sunday)* ............$10.22.... $10.83.. $10.83Sunday* ...................................... $9.13......$8.67.... $8.67NEWSSTANDS:Wayne, Oakland, Macomb: Daily $0.50; Sunday $1.50All other counties: Daily $0.75; Sunday $1.75In some areas, independent contractor rates may vary. Allsubscriptions are continuous.
*HOLIDAY/BONUS DAYS(Sunday and weekend subscribers in
Wayne, Oakland, Macomb, Livingston, Washtenaw, Monroe)In 2008, Sunday and weekend subscribers in these countieswill receive the following holiday/bonus day editions as partof their subscriptions billed at up to 40¢ each: January 1,January 21, February 18, March 17, March 21, May 12, May26, July 7, August 25, September 1, October 13, November 5,November 27, December 25. Additional bonus days may beadded, based upon story developments or anticipated readerinterest, not to exceed 20 holiday/bonus days in 2008.
MAIL SUBSCRIPTION RATESWithin the state of Michigan
Daily andSunday
Dailyonly
Sundayonly
52 weeks .............. $520.00.......... $369.20.............$176.8026 weeks ................260.00............184.60................ 88.4013 weeks ................130.00............. 92.30................ 44.204 weeks................... 40.00............. 28.40................ 13.60
Outside Michigan52 weeks .............. $556.40.......... $397.80.............$184.6026 weeks ................278.20............198.90................ 92.3013 weeks ................139.10............. 99.45................ 46.154 weeks................... 42.80............. 30.60................ 14.20Foreign rates furnished upon request.
The Free Press is printed partially on recycled newsprint.
Postmaster, please send address changes to:Mail Subscription Department615 W. Lafayette BoulevardDetroit, MI 48226
DETROIT MEDIA PARTNERSHIP, OFFICERSDavid L. Hunke, Chief Executive Officer.........313-222-8777Susie Ellwood, EVP & General Manager.........313-222-2149Joyce Jenereaux, Sr. VP/Finance...................313-222-8891Janet Hasson, Sr. VP/
Audience Development & Strategy ............313-222-2373Rich Harshbarger, VP/Consumer Marketing ..313-222-6694Keith Pierce, Sr. VP/Operations....................313-222-2386Rebecca Steckler, Sr. VP/Advertising ............313-222-2274Michael Quinn, VP/Logistics.........................586-826-7087Patricia Kelly, VP/
Digital Development & Client Solutions.....313-222-6504Jeff Kapuscinski, VP/Strategic Planning........313-222-2432Kristi Bowden, VP/Human Resources............313-222-2061John Jackson, VP/Digital Sales 313-222-2424Mark Brown, Controller................................313-222-5108Dale Parry, Publisher/Signature Media..........313-222-6549
Effective 9.1.08
Your Free Press store� Order Free Press books, postersand T-shirts, including our new2008 Stanley Cup poster:www.freep.com/bookstore or800-245-5082.� Order Free Press photo reprintsor full-page reprints:www.freep.com/reprints.
“It’s tough to sell anything.”In all, U.S. consumers
bought just 964,873 cars andtrucks last month, a drop of26.6% from the same month ayear ago.
Monthly auto sales usuallybreak the million mark, andSeptember’s dismal result wasthe worst sales month on rec-ord since 1993, according toAutodata Corp. of WoodcliffLake, N.J.
No automaker — foreign ordomestic — was spared pain.
Sales were down a breath-taking 36.8% at Nissan MotorCo., 34.5% at Ford Motor Co.,32.8% at Chrysler LLC and32.3% at Toyota Motor Corp.
Even Honda Motor Co.,which had been a top perform-er all year with its fuel-efficientlineup, posted a 24% decline.
“Obviously, no one is im-mune to market shifts as dra-matic as we have been seeing,”Dick Colliver, executive vicepresident of sales for Honda inAmerica, said in a statement.
General Motors Corp. alsomanaged to post a better-than-industry performance. Itssales fell just 15.6%, allowingGM to capture an impressive29% of the market last month.
“GM performed extremelywell in tough market condi-tions,” Mark LaNeve, GM’svice president of North Ameri-can sales, service and market-ing, said during a conferencecall with journalists. “You haveto remember these numbersare relative. These numbers, afew years ago, I would havejumped out the window withthese numbers — and we’re onthe 39th floor here” at the Re-naissance Center in Detroit.
GM achieved most of thatperformance by selling largenumbers of cars and trucks in-to the fleet market, where au-tomakers sell vehicles in bulkat discount to rental-car com-panies and other businesses.GM’s retail sales were down26% despite a nationwide em-ployee-pricing promotion.
Future uncertainHeading into September,
the U.S. economy was alreadyunder siege because of deepen-ing crises in the housing, creditand energy sectors.
However, many industry in-siders were hopeful that Au-gust sales, which came in at 1.3million vehicles, were rock-bottom and that the industrywas headed toward a recovery.
But after automakers re-vealed their September re-sults, few were willing to pre-dict the future.
“I don’t think anyone cansay where the bottom mightbe,” Ford’s senior U.S. econo-mist, Emily Kolinski Morris,said during a conference callwith journalists.
“Clearly, we are looking at avery fragile economy,” shesaid.
Mike DiGiovanni, chiefsales analyst for GM, said theindustry’s awful auto sales lastmonth highlight the need forCongress to pass a financialrescue package soon.
“The sooner we get thissorted out, the better we’ll allbe,” he said. “If it doesn’t hap-pen, it’s going to set off somecontinuing spiraling down inthe economy. … We feel it’scritical.”
Jackson, the nation’s larg-est auto dealer, agreed.
“We need an official an-nouncement … the sky is notgoing to fall,” he said. “Thetrust is broken. The psycholo-gy has turned negative, and wenow need an event to turn itback.”
It that doesn’t happen,Jackson said Main Streetwould continue to feel thesqueeze from Wall Street’swoes, and the industry shouldexpect auto sales to sputteralong at weak levels for theforeseeable future.
But he was holding out hopethat Congress would pass abailout plan and the presidentwould sign it by week’s end.
“At least we’ll be on the roadto better days,” Jackson said.
A silver lining?While most automakers
blamed the intensification offalling auto sales on the declin-ing availability of credit, oneMichigan mega-dealer said heviewed the tightening of mon-ey as a good thing.
Joseph Serra, whose GrandBlanc-based Serra Automo-tive owns 21 new-car dealer-ships in six states, said the pull-back in lending that he has wit-nessed has been a responsiblereaction to a market that hadbecome far too freewheeling inrecent years.
He said lenders are makingsure buyers can really affordwhat they are attempting topurchase now.
“Things got too loose,” saidSerra, who was educated as anaccountant and also is the se-nior cochairman of the NorthAmerican International AutoShow in Detroit.
“Sometimes, a lot of goodcan come out of bad situa-tions,” he said. “I’m a believer:Bad habits are created in goodtimes, and good habits are cre-ated in bad times. …
“We’re going to get back todoing things right.”
Contact SARAH A. WEBSTER at313-222-5394 or [email protected]. Business writers Tim Higgins, KatieMerx and Brent Snavely contributedto this report.
SALES � Carmakersfeel the squeeze aseconomy worsens
From Page 1A
Preps ExtraFollow your team every Friday.
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September auto salesU.S. light-vehicle sales totals, individual automaker results and market share forSeptember compared to September 2007:
SEPTEMBER 2008
Maker volume% change
from 2007% mktshare
YTDvolume
% changefrom 2007
YTD %mkt share
GM 282,806 -15.6% 29.3% 2,412,666 -17.8% 22.4%Toyota 144,260 -32.3% 15.0% 1,793,303 -10.4% 16.7%Ford 120,355 -34.5% 12.5% 1,587,670 -17.4% 14.8%Chrysler 107,349 -32.8% 11.1% 1,183,519 -25.0% 11.0%Honda 96,626 -24.0% 10.0% 1,180,583 -1.1% 11.0%Nissan 59,565 -36.8% 6.2% 785,698 -3.4% 7.3%Volkswagen 24,937 -8.2% 2.6% 243,997 -1.3% 2.3%Hyundai 24,765 -25.4% 2.6% 337,664 -5.8% 3.1%Mercedes 18,792 -16.4% 1.9% 177,485 -1.7% 1.6%BMW 18,525 -25.8% 1.9% 236,615 -4.8% 2.2%Kia 17,383 -27.8% 1.8% 228,088 -1.7% 2.1%Mazda 16,169 -35.6% 1.7% 215,408 -5.7% 2.0%Subaru 14,491 -11.9% 1.5% 143,789 3.8% 1.3%Mitsubishi 7,378 -39.0% 0.8% 80,105 -24.3% 0.7%Suzuki 4,083 -46.6% 0.4% 74,513 -9.1% 0.7%Jaguar Land Rover
3,591 -31.6% 0.4% 35,261 -26.7% 0.3%
Smart USA 1,778 NA 0.2% 18,156 NA 0.2%Porsche 1,458 -44.8% 0.2% 21,076 -19.8% 0.2%Isuzu 258 -54.3% 0.0% 4,188 -24.3% 0.0%Maserati 199 30.1% 0.0% 1,930 14.9% 0.0%Ferrari 105 -3.7% 0.0% 1,234 -5.3% 0.0%TOTAL 964,873 -26.6% 100.0% 10,762,948 -12.8% 100.0%GM includes Buick, Cadillac, Chevrolet, GMC, Hummer, Pontiac, Saab and Saturn. Ford includes Lincoln,Mercury and Volvo. Chrysler includes Chrysler, Dodge and Jeep. Volkswagen includes Audi and Bentley. BMWincludes Mini and Rolls-Royce. Toyota includes Lexus and Scion. Honda includes Acura. Nissan includesInfiniti.Figures are not adjusted for selling days.Source: Autodata Corp.
Top 20 vehicles for SeptemberThe worst sales month since February 1993 saw little to cheer about.
Sept.2008
% change 2008YTD
% change
Chevrolet Silverado 50,428 -3.9% 370,502 -22.5%Ford F-Series 32,727 -41.6% 392,698 -26.9%Toyota Camry 29,486 -27.1% 355,562 -2.6%Chevrolet Impala 27,143 17.1% 209,734 -16.0%Honda Accord 22,371 -36.1% 313,228 3.8%Honda Civic 21,577 -12.8% 285,715 12.1%Toyota Corolla / Matrix 21,316 -27.9% 279,685 -4.2%Dodge Ram 20,812 -30.9% 196,058 -29.2%Chevrolet Malibu 19,725 79.0% 139,390 50.8%GMC Sierra 18,744 1.6% 133,811 -14.9%Chevrolet Cobalt 16,521 -16.5% 162,462 6.3%Nissan Altima 16,043 -42.4% 223,776 2.6%Honda CRV 15,928 -19.4% 158,024 -5.5%Dodge Caravan 11,056 6.1% 102,398 -21.5%Toyota Prius 10,873 -13.0% 130,561 -4.8%Honda Odyssey 10,783 -34.5% 112,041 -14.0%Ford Focus 10,346 4.7% 165,382 24.3%Pontiac G6 10,326 -8.5% 119,706 8.4%Toyota RAV4 10,305 -28.5% 106,738 -19.1%Ford Fusion 9,942 -16.9% 117,545 4.5%Source: Autodata Corp.
Made in MichiganHere is how vehicles assembled in Michigan sold last month. Note that somemodels are also made elsewhere.Vehicle City Sept. 2008 % change YTD 2008 % changeGENERAL MOTORSBuick Enclave Lansing 5,171 26.7% 36,900 123.9%Buick Lucerne Detroit/Ham-
tramck6,239 -26.6% 43,839 -32.0%
Cadillac CTS Lansing 4,360 -32.0% 47,479 24.7%Cadillac DTS Detroit/Ham-
tramck3,381 -29.2% 25,790 -32.4%
Cadillac SRX Lansing 848 -48.8% 12,863 -24.0%Cadillac STS Lansing 856 -46.9% 12,621 -14.5%Chevrolet Silverado Flint, Pontiac 50,428 68.2% 140,555 36.5%Chevrolet Malibu Orion 19,725 -3.9% 370,502 -22.5%GMC Acadia Lansing 6,015 -0.1% 57,018 7.9%GMC Sierra Pontiac 18,744 1.6% 133,811 -14.9%Pontiac G6 Orion 10,326 -8.5% 119,706 8.4%Saturn Outlook Lansing 2,803 5.5% 21,403 -17.0%FORDFord Expedition Wayne 3,645 -37.4% 43,272 -39.2%Ford F-Series Dearborn 32,727 -41.6% 392,698 -26.9%Ford Focus Wayne 10,346 4.7% 165,382 24.3%Ford Mustang Flat Rock 4,910 -52.2% 78,871 -28.2%Lincoln Mark LT Dearborn 383 -51.8% 3,659 -45.0%Lincoln Navigator Wayne 1,012 -48.5% 11,737 76.4%CHRYSLERChrysler Sebring Sterling Heights 5,450 -10.0% 61,428 -10.0%Dodge Avenger Sterling Heights 4,500 -45.9% 53,828 -9.0%Dodge Dakota Warren 622 -85.1% 21,626 -47.7%Dodge Ram Warren 20,812 -30.9% 196,058 -29.2%Dodge Viper Detroit 86 258.3% 872 150.6%Jeep Grand Cherokee Detroit 4,565 -56.2% 57,333 -38.5%Jeep Commander Detroit 1,590 -64.7% 22,654 -54.8%OTHERSMazda6 Flat Rock 3,694 -3.9% 42,237 -4.1%Mitsubishi Raider Warren 309 -88.2% 2,018 -69.5%Source: Autodata Corp.
At freep.com: As salesdecline, incentives increase
