As expected, auto sales took a substantial drop in September without the “Cash for Clunkers” subsidy:
DETROIT — After two frenzied months during the government’s cash-for-clunkers program, new-vehicle sales in the United States fell in September back to the levels seen earlier this year, automakers said Thursday.
General Motors said it sales declined 45 percent, and Chrysler reported a 42 percent drop from September a year ago.
Sales were down 20 percent at Honda, 13 percent at Toyota and 7 percent at Nissan.
“Floor traffic was lousy all month,” Mark LaNeve, G.M.’s vice president for United States sales, said. “Every brand, every region of the country. It was a real post-clunker hangover. It was disappointing. I expected the month to be a bit stronger, but it just wasn’t.”
The Ford Motor Company said its sales declined 5 percent from September 2008. For the entire third quarter, though, sales by Ford’s three domestic brands rose 5 percent, marking its first quarterly increase in four years.
Ford said sales of its F-series pickup truck rose for the second consecutive month, a positive indication about the housing market and broader economy, as the F-series is frequently purchased by building contractors and other businesses.
The best news for the month came from Hyundai, which has been gaining momentum throughout the recession. Hyundai said its sales rose 27 percent in September.
Total industry sales are expected to be 23 percent less than a year ago, according to a forecast by the Web site Edmunds.com.
As I expected, it seems that all Cash for Clunkers did was create a temporary sales blip.
Yes, the “hangover” was expected. What was also expected was the loss of revenue by auto repair shops and car donation charities as a result of the destruction of 700,000 running vehicles.