By Mark Huffman
ConsumerAffairs.com
May 5, 2009
Americans may be buying houses once again, but they're passing up the
bargains in new car showrooms. The American International Automobile
Dealers Association, which represents over 11,000 international
franchises, says overall sales, including domestics and unadjusted for
business days, were down 34.4 percent from April 2008.
"We haven't seen the numbers we hoped for this spring," said AIADA Chairman Russ Darrow. "It is becoming increasingly clear that point of sale stimulation is necessary to jumpstart a recovery. Specifically, we need Congress to pass a scrappage/fleet modernization bill. Any bill must be immediate, simple, and inclusive of all brands retailed in the United States."
According to numbers from Autodata Corp., international brands sold 442,124 vehicles in April, down from 656,034 in April 2008. Asian brands accounted for 45.5 percent of the market, up from 44.7 percent in April 2008, and Europeans had an 8.5 percent share, up from 7.5 percent.
Domestic brands finished the month with just 46 percent of the market.
Until now, Kia and Subaru had managed to remain in the black for 2009, but weak April sales dragged them down 3.8 and 0.8 percent respectively. Mercedes Benz's Smart is now the only brand sold in the United States to have seen positive growth in 2009.
Toyota Motor Corp. was especially hard hit, with sales falling 42.2 percent from last April.
April's weak numbers were particularly discouraging in light of some analyst predictions for a spring recovery. The seasonally adjusted annual sales rate (SAAR) now stands at 9.5 million vehicles.
Still, automakers and some dealers see some cause for optimism. Sales have remained relatively steady for the past four months, sparking hope that the bottom of the market has been located. In addition, consumer confidence rose in April, from 26.9 to 39.2 percent — its highest level in 2009.
