Major automakers post dismal October sales

“In an 11 million industry, you’re not going to see very many products for very many manufacturers post year-on-year sales increases.”

Jim Farley, Ford’s group vice president of marketing, said it’s likely auto companies will start their year-end sales promotions early to try to drum up business, although he would not say what steps Ford would take.

GM said it will start its annual “Red Tag” sale Tuesday, with lower pricing and customer cash back on most of its new models. The sale typically begins later in the year.

Chrysler said it would continue incentive programs introduced in November that include cash rebates of up to $6,000 and discounted financing on remaining 2008 model year vehicles.

The Auburn Hills-based company is also offering lease loyalty allowances of up to $750 for purchases made by returning lease customers, along with bonus cash of up to $2,000 on some 2008 vehicles for customers who lease through independent financial institutions.

After reeling from a 32 percent drop in September sales, Toyota launched zero-percent financing on almost all of its models, prompting analysts to predict that it could post better-than-average October sales and potentially surpass GM for the first time as the U.S. sales leader.

But, like at Ford, the vast majority of Toyota models still posted double-digit declines. Notable exceptions included sales of the Corolla, which rose 6.1 percent, and the Sequoia sport utility vehicle, which posted a 21 percent gain.

Toyota Division General Manager Bob Carter said the financing offer, which had been set to expire on Monday but will now be extended for another month, gave October’s sales a needed boost.

“This managed to breathe some life into an otherwise lackluster month,” Carter said.

Meanwhile, GM’s financing arm, GMAC Financial Services, said it was tightening its lending standards to require a credit score of at least 700, potentially shutting out some buyers.

Mark LaNeve, GM’s vice president for North American sales, said steep cutbacks in leasing and lack of available credit accounted for half of GM’s year-over-year sales decline.

“There really needs to be actions focused on the consumer and available credit,” DiGiovanni said.

Analysts said GM’s employee pricing incentives in September likely pulled in buyers who would have waited to purchase cars, further reducing October sales.

The Associated Press reports unadjusted auto sales figures, calculating the percentage change in the total number of vehicles sold in one month compared with the same month a year earlier. Some automakers report percentages adjusted for sales days. There were 23 sales days last month, two less than in October 2007.

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