4 Mar 2009

February vehicle sales plunge in US

10:10 am on 4 March 2009

Vehicle sales in the United States dropped by more than 40% in February to the lowest level in almost three decades.

It was the 15th consecutive monthly drop in auto sales.

General Motors Corp, which has obtained $US13.4 billion in government loans and needs more, posted a sales decline of 53%. Sales at Ford Motor Co dropped 48%.

Japanese companies fared little better with sales drops of 37% at Toyota Motor Corp and Nissan Motor Co and 38% at Honda Motor Co.

GM said the plunge brought February sales to the lowest level for the month since 1967.

Ford and GM are to reduce their production further in the second quarter. GM has cut its quarterly production plan by 34%. Ford said it would cut production by 38%.