International Automobile Dealers Announce Monthly Sales

Despite Optimism, Sales Continue to Drop

ALEXANDRIA, Va., July 2 -- The American International Automobile Dealers Association (AIADA) today released June 2009 sales figures for the international automobile industry. AIADA represents over 11,000 international franchises, which so far this year account for 54.6 percent of all vehicles sold in the United States. Overall sales, including domestics and unadjusted for business days, were down 27.7 percent compared to June 2008 and 35.1 percent year to date.

Analysts had predicted that June would be a turning point for the industry, forecasting that the seasonally adjusted annual sales rate (SAAR) would break the 10 million mark for the first time this year. Instead, the SAAR slipped from 9.9 million in May to 9.7 million. "Auto dealers had high hopes for June's sales," said AIADA President Cody Lusk. "Unfortunately, we didn't see the movement we were hoping for. Our focus is now on the second half of the year, which should be positively impacted by the recovering housing market and the incentivizing Cash for Clunkers program."

According to numbers from Autodata Corp., international brands sold 469,713 vehicles in June, down from 501,096 vehicles in May, and 644,832 in June 2008. Asian brands accounted for 45.8 percent of the market, down from 46.2 percent in June 2008, and Europeans had an 8.8 percent share, up from 8 percent. Domestic brands finished the month with 45.4 percent of the market.

June's dismal sales could be attributed to a number of factors, including an average rise in gas prices of 36 cents from May, a consumer confidence index that fell to 49.3 from 54.8 in May, and an unemployment rate of 9.5 percent, the highest since August, 1983. None the less, there are signs that support dealers' optimism. Sales in June were the second best of 2009, behind May, which some analysts see as a sign of stabilization. In addition, three brands - Rolls Royce, Subaru, and Volvo - actually surpassed their June 2008 sales by 3.6, 3.4, and 0.6 percent, respectively.

For more information on automobile sales data, and to view a full report on June automobile sales, click here: http://www.aiada.org/newsroom/newsDetails.asp?id=57393&cmd=article.

About AIADA: Established in 1970, AIADA is and continues to be the only association whose sole purpose is to represent America's 11,000 international nameplate automobile franchises.