US auto sales fall 35% year over year in May

02 June 2009 23:07  [Source: ICIS news]

HOUSTON (ICIS news)--Year-over-year sales of US vehicles dropped by 35% to 606,327 units in May, industry data said on Tuesday, but the steep decline was the lowest monthly sales drop this year.

Jessica Caldwell, an analyst with automotive consumer website Edmunds.com, said that the May sales figures show the US auto sector has found the bottom following months of horrific sales.

"It seems as if that is the indication that has come out of today's sales results," she said. "But a lot of the indications show the recovery process will be much slower than anyone hopes for."

US auto sales fell by 36% in April, 40% in March, 45% in February and 41% in January.

Chrysler, expected to emerge from bankruptcy restructuring in the next few days, saw its total sales fall by 47% year over year in May, the deepest loss of the six largest car manufacturers in the US.

However, the company's sales volumes in May were at the highest levels of 2009.

Caldwell said the media coverage of Chrysler's bankruptcy, including plant closures, spurred an influx of interest in Chrysler vehicles and sent consumers to dealerships.

The same could happen for the second auto manufacturer to file for Chapter 11 bankruptcy protection, General Motors, Caldwell said.

The Detroit-based company had its year-over-year sales figure slide by 30% last month, an improvement from the 34% decline in April.

Honda was the only other automaker, besides Chrysler, that had sales fall by more than 40%.

The nosedive in sales for Honda is misleading, though, Caldwell said.

US gasoline prices were climbing to nearly $4/gal last May and the shock at the pump pushed consumers towards Honda's smaller, more fuel-efficient fleet, providing the company with a banner sales month.

Month-to-month figures showed Honda's sales in May were nearly flat and fellow fuel-sipping automaker Toyota saw sales rise more than 20% month-to-month.

The auto industry is a key end-use barometer of chemical demand with each US-made automobile using 331lb (150kg) of plastics, according to the American Chemistry Council (ACC).

The ACC also estimates that each automobile made in the US contains nearly $2,700 (€1,917) worth of chemical products or chemical processing value.

The table below reflects May sales.

	2009			2008
	Car	Truck	Total	Car	Truck	Total	% change
Chrysler	18,046	60,964	79,010	42,124	106,623	148,747	-47
Ford	63,697	92,257	155,954	85,542	120,458	206,000	-24
GM	81,009	110,866	191,875	130,115	142,248	272,363	-30
Honda	57,957	40,387	98,344	114,796	53,201	167,997	-41
Nissan	42,831	24,658	67,489	71,097	29,777	100,874	-33
Toyota	96,650	55,933	152,583	162,653	85,182	247,835	-38
Total	360,190	385,065	745,255	606,327	537,489	1,143,816	-35

($1 = €0.71)

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By: Ryan Hickman
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