Big Drop Expected In December 2008 U.S. Car Sales

Washington DC January 5, 2009; The AIADA newsletter reported that today's release of monthly, year-end numbers will show a dramatic fall, experts say.

Source AutoData

The Detroit News reports the industry as a whole sold about 13.2 million cars and trucks in 2008 in the United States, down from 16.5 million units in 2007. That is the lowest sales tally since 1992. It represents the biggest year-over-year decline since the first oil crisis in 1974.

"Industry sales of light vehicles appear to have weakened further in December amid continued deterioration in consumer confidence," said analyst Brian Johnson of Barclays Capital, who estimates December sales could be less than 9.6 million vehicles on a seasonally adjusted annual rate. That would be worse than the 10.2-million-unit selling rate for November and the lowest monthly rate in more than 26 years.

Toyota and Honda are the only two major automakers expected to gain share. Economists agree that there is no evidence that the worst has passed. Said Nigel Gault, chief economist for IHS Global Insight: "We are not looking for signs of recovery yet, merely for signs that the rate of decline is becoming less severe - but cannot find them."

For more on December sales numbers, click here.