Thursday, October 2, 2008

Toyota sales fall 32% for the month of September 2008... It's worst decline since June 1987... Is this the beginning of a steep sales decline?


Toyota Motor Sales USA posted it's largest sales decline since June 1987 one of it's worst monthly sales output's in it's history of selling vehicles in the U.S., for the month Toyota sold 144,260 vehicles, significantly down from the same period last year when it it sold 213,042 vehicles. That is a whopping 32% for a car company that has been long revered as the model for all other manufacturers, now and for the future. I have long cautioned the optimism with Toyota sales success recently and I believe that this is the start of a decline that will have enormous ramifications across the board for the manufacturer. However the sky will not fall quite as hard as it will for GM, Ford and Chrysler dealers as the distribution network for these manufacturers has long been to big to accommodate lackluster sales volume to support it. Sales per unit for these manufacturers continues to erode dramatically and unfortunately a whole lot of these dealerships will soon close there doors.

The Big 6 (GM, Ford, Chrysler, Honda and Nissan) all saw sales decline for the month, but Toyota's sales decline is more troubling as I have written before, the quest to become the largest is perilous at best, plus with it's emphasis to mirror what GM and Ford have done with it's reliance on Truck and SUV's sales is more ammunition to be worried about how Toyota can turn it around.

To be optimistic, Toyota executives are making the rounds saying that Toyota and Lexus customers are concerned just like the rest of the nation about the downturn in consumer confidence, it goes without saying that overall consumers are looking to purchase energy and fuel efficient vehicles that Toyota's line up doesn't measure up outside of the Prius and Corolla and a small output of Scion's. Top to bottom Toyota's line up is heavy on Trucks and SUV's, just like the domestics.

For the record Nissan sales were down 37%, Ford 33.8%, Chrysler 32.8%, Honda 24% and GM 15.6%.

Enjoy Today!
That Car Guy

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