This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7868141.stm

The article has changed 10 times. There is an RSS feed of changes available.

Version 8 Version 9
US car firms report sales slump US car firms report sales slump
(about 1 hour later)
Ford, General Motors (GM) and Chrysler have all reported a sharp fall in US sales in January, as industry-wide American sales fell to a 27-year low.Ford, General Motors (GM) and Chrysler have all reported a sharp fall in US sales in January, as industry-wide American sales fell to a 27-year low.
Sales at Ford plunged 42% last month, compared with a year earlier, while those at GM declined 49%, and Chrysler was hit by a fall of 55%.Sales at Ford plunged 42% last month, compared with a year earlier, while those at GM declined 49%, and Chrysler was hit by a fall of 55%.
GM and Chrysler needed a $17.4bn (£12bn) rescue package from the US government in December.GM and Chrysler needed a $17.4bn (£12bn) rescue package from the US government in December.
While Ford last week reported a record $14.6bn annual loss for 2008.While Ford last week reported a record $14.6bn annual loss for 2008.
'Monster''Monster'
American car sales have slumped as consumers have cut back on making large purchases as the US recession has deepened.American car sales have slumped as consumers have cut back on making large purchases as the US recession has deepened.
US consumers have cut back on buying new carsUS consumers have cut back on buying new cars
"We're in the mouth of this monster, and we have a lot of work to do," said Chrysler sales chief Steven Landry."We're in the mouth of this monster, and we have a lot of work to do," said Chrysler sales chief Steven Landry.
Chrysler argues that more customers would like to buy new cars, only they can't secure the loans to do so, because of the continuing problems in the US banking sector.Chrysler argues that more customers would like to buy new cars, only they can't secure the loans to do so, because of the continuing problems in the US banking sector.
January's decline has also hit sales of foreign cars in the US. Toyota's January American sales were down 32% from a year earlier, while those at Nissan dropped 30%.January's decline has also hit sales of foreign cars in the US. Toyota's January American sales were down 32% from a year earlier, while those at Nissan dropped 30%.
"The truth is that the entire auto industry finds itself in the eye of this economic storm," said Toyota US executive Bob Carter."The truth is that the entire auto industry finds itself in the eye of this economic storm," said Toyota US executive Bob Carter.
However, both Subaru and Hyundai bucked the trend, with their January US sales rising 8% and 14%.However, both Subaru and Hyundai bucked the trend, with their January US sales rising 8% and 14%.
Government supportGovernment support
GM and Chrysler gained their bail-out from the White House last month after they warned that they were running out of cash.GM and Chrysler gained their bail-out from the White House last month after they warned that they were running out of cash.
The financial situation at Ford is not as bad, although it has secured a $9bn government credit line that it will be able to access in the future if needed.The financial situation at Ford is not as bad, although it has secured a $9bn government credit line that it will be able to access in the future if needed.
GM said on Tuesday that it would offer voluntary redundancy to 22,000 US employees as it seeks to cut costs.GM said on Tuesday that it would offer voluntary redundancy to 22,000 US employees as it seeks to cut costs.
Industry-wide US car sales fell 185 in 2008 to 13.2 million vehicles. Industry-wide US car sales fell 18% in 2008 to 13.2 million vehicles.
Sales for 2009 are expected to drop near 10.5 million, analysts say.Sales for 2009 are expected to drop near 10.5 million, analysts say.
"Even with a boost from the anticipated federal stimulus plan, we see consumers taking a cautious approach to large ticket discretionary purchases," said S&P equity analyst Efraim Levy."Even with a boost from the anticipated federal stimulus plan, we see consumers taking a cautious approach to large ticket discretionary purchases," said S&P equity analyst Efraim Levy.