No Surprise: Auto Sales Suffer in February

As economists bicker over whether or not to call the current economic climate a “recession,” automakers know that whatever it is that’s going on, it ain’t good. Even coming into 2008 with low expectations hasn’t helped soften the blow.

The majority of carmakers saw a sales decline in February, with overall sales of light vehicles down 6.3% from the previous year. This, on top of a 4% drop in January, has car manufacturers wondering how long they’ll have to weather the storm.

With the possibility of $4 gas hovering over consumers’ heads, it seems unlikely people will be hankering for a new truck or SUV, and sales of those types of vehicles clearly reflect this. Chrysler and GM posted 23% and 19% drops in truck sales respectively.

The one bright spot: Companies like Honda, known for fuel-efficient vehicles with good resale value, posted decent gains of 4.9% for the month, with the 34 mpg Fit snatching a 69% sales gain.

Economy Hurting Auto Sales (Detroit Free Press)