Automakers in the US have reported that sales across the industry fell sharply during September, dipping below the one million mark for the first time in 15 years.

According to sales tracker Autodata, a total of 964,873 vehicles were sold, a monthly drop of 27 per cent and also a figure which represents the biggest year-on-year decline since January 1991.

The slump is being blamed on a combination of the credit squeeze on buyers and dealers created by the economic downturn and turmoil on Wall Street, plus gradually rising gasoline prices.

Meanwhile, in France, adjusted figures suggested that year-on-year sales in the country were down by 1.4 per cent in September as the market begins to show signs of fatigue.

Despite government-based incentives relating to buying fuel-efficient vehicles, the French market is seemingly not immune to trends which saw sales in Europe slide by 16 per cent in August.

With the financial crisis looking set to deepen, many automakers are becoming increasingly concerned that demand will drop off further as steel and energy prices continue to rise.

For instance, Toyota Motor Corporation, Japan's largest automaker, has recently cut production in Europe and the US and lowered its sales forecast for 2008 by 3.6 per cent to 9.5 million vehicles.

Speaking yesterday (1st October) ahead of the Paris Motor Show, Executive Vice-President Mitsuo Kinoshita said: "External pressures are even tougher. These changes are rapid and the implications are significant.''

However, there were more positive noises in relation to the US industry emanating from Volkswagen's premium auto division, Audi, which claimed that the sales slump will be reversed in final two quarters next year.

Sales Chief Peter Schwarzenbauer said today: "The Americans have an optimistic attitude. They dislike talking about crises. We expect the (presidential) elections to improve the mood so a recovery could already begin in the second half of 2009."

Audi also confirmed that its global sales rose by 12.2 per cent during September.



Source:

U.S. auto sales plunge (01/10/08)
http://money.cnn.com/2008/10/01/news/companies/autosales/?postversion=2008100114

UPDATE: Government Incentives Underpin French Car Sales In Sept (01/10/08)
http://money.cnn.com/news/newsfeeds/articles/djf500/200810010905DOWJONESDJONLINE000455_FORTUNE5.htm

Toyota Says Financial Crisis Accelerates Slowdown in Car Market (01/10/08)
http://www.bloomberg.com/apps/news?pid=20601101&sid=aMLgcROSXIFU&refer=japan

AUTOSHOW-Audi sees U.S. car market rebound in H2 2009 (02/10/08)
http://www.reuters.com/article/marketsNews/idUSWEA166120081002