New car sales were 28% lower in February than they had been the previous month and 38.5% lower than in February last year.
Sales for most makes of cars in the USA dropped 40% or more last month. The exceptions were Kia, Hyundai and Subaru which had modest growth in sales that’s attributed to:
A combination of new models, attractive incentives and sales people who are better with the pitch than the next guy are probably all contributing to how well these brands are weathering the U.S. recession.
In Europe Volvo truck sales dropped from 41,970 trucks in the third quarter of 2007 to only 115 in the same period last year.
Is there a silver lining to this?
Frenemy asks what affect declining sales will have on fuel consumption? A decrease in the size of the vehicle fleet or its rate of growth probably means a decline in, or slower growth of, demand for fuel too – unless the increase in the distance travelled by each vehicle increases markedly.
There might also be more work for mechanics keeping older vehicles on the road because people are holding on to them for longer.
However, that will be cold comfort for the people whose jobs making and selling new trucks and cars are under threat.