Bankrupt Chrysler leads in 36% US auto sales drop in April

01 May 2009 23:13  [Source: ICIS news]

HOUSTON (ICIS news)--Chrysler posted the deepest sales decline in the US automobile industry in April, according to figures released on Friday, a day after the automaker filed for bankruptcy protection.

Overall, US vehicle sales dropped 36% year over year to 654,346 units in April.

With a Chrysler bankruptcy looming in April, US consumers shunned the company's cars and trucks as its sales plunged by 48%.

A group of Chrysler debt-holders refused the US Treasury's buyout offer on Thursday, and the Michigan-based automaker soon after filed in New York's US Bankruptcy Court.

Chrysler said it plans to shut down most production plants for 30-60 days while the bankruptcy proceedings play out.

Toyota was the only other company to post losses higher than 40%. Sales of Ford vehicles fell by 31% and General Motors (GM) saw its sales drop by 34%.

GM is now on the clock to get its operations in order before the end of May or US government financial aid will dry up and put GM in the same position as Chrysler.

GM said this week it would shed 23,000 US jobs by 2011 and cut 42% of its dealerships as well as 13 plants in attempts to put it on course to profitability.

The US auto sales market continued to be dismal in April, but it was the narrowest contraction in 2009 after year-over-year sales declines were more than 40% in each of the first three months.

A Citibank analyst said first- and second-quarter production rates at US automakers could result in output below 7m total vehicles.

An ailing domestic auto industry directly affects the chemical industry, with each US-made vehicle containing more than $2,200 (€1,650) worth of chemical products or chemical processing value, the American Chemistry Council said.

The table below reflects April sales.

	2009			2008
	Car	Truck	Total	Car	Truck	Total	% change
Chrysler	15,563	61,119	76,682	39,564	108,187	147,751	-48
Ford	52,463	77,435	129,898	73,654	115,593	189,247	-31
GM	71,775	101,232	173,007	120,824	140,098	260,922	-34
Honda	67,514	33,515	101,029	82,525	52,655	135,180	-25
Nissan	30,249	16,941	47,190	48,990	26,865	75,855	-38
Toyota	77,851	48,689	126,540	134,769	82,841	217,610	-42
Total	315,415	338,931	654,346	500,326	526,239	1,026,565	-36

 ($1 = €0.75)

Paul Hodges studies key influencers shaping the chemical industry in Chemicals and the Economy
To discuss issues facing the chemical industry go to ICIS connect

By: Ryan Hickman
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly