Housing crisis, credit crunch, take toll on sales
By Dee-Ann Durbin
Associated Press
DETROIT — The U.S. auto market is likely to remain sluggish until year-end discounting starts in December, but there were still bright spots in October for General Motors Corp. and its Asian rivals.
GM's sales were up 3 percent over last October, fueled by a 6 percent increase in sales of the automaker's new trucks and sport utility vehicles. Toyota Motor Corp. managed a 4.5 percent sales increase while Nissan Motor Co. reported a 13 percent increase due to several hot sellers.
U.S. auto sales rose 1 percent in October, according to Autodata Corp. But worries about home values and the credit crunch are taking their toll. Sales were down 3 percent in the first 10 months of the year.
Chrysler LLC took one of the biggest hits, with sales down 9 percent from last October. Chrysler said its car sales were up 12 percent but were dragged down by truck sales, which fell 14 percent.
Ford Motor Co. also took a hit. Ford's U.S. sales fell 9.3 percent as the automaker continued to pull back on low-profit sales to rental car companies. Ford's car sales fell 26 percent from last October, largely because it no longer sells thousands of Ford Taurus sedans to rental agencies, while its truck sales were up 1.2 percent.