September auto sales to be grim reminder

McClatchy Newspapers

SAN FRANCISCO — Fears of a post-Cash-for-Clunkers apocalypse may have been overdone, but September auto-sales results will still be a sobering reminder that the federal rebate program provided only a temporary fix for the ailing car industry.

Automakers are slated to report their monthly U.S. tallies today, and the declines, though likely not as bad as initially expected, will still be drastic.

Overall, Edmunds.com is looking for a seasonally adjusted annual sales rate of about 9.3 million cars and trucks, down from 14.1 million in August, with some leftover deliveries from the Cash-for-Clunkers deal buoying results.

The car-buying research Web site sees sales chopped in half for Chrysler and General Motors from a year ago, while Ford Motor Co. is expected to hand in a 13.3 percent decline.

Incentives were mostly in short supply this month, but since GM launched its money-back guarantee, interest has spiked about 10 percent for remaining core brands Buick, Chevy, Cadillac and GMC, according to Edmunds.com data.

Earlier in September, GM offered new-car buyers the option to return their vehicle for a refund within 60 days of ownership or to decline the offer and take $500 cash back.

“This program’s message is a statement that GM has confidence in its products,” said Edmunds.com chief executive officer Jeremy Anwyl. “The company has come a long way in product development, but the brand has to overcome negative perceptions in order to win more customers.”

The Japanese trio led by Toyota Motor Corp. also is on track for red numbers vs. a year ago, while Korea’s Hyundai, which has been on a roll in recent months, is the only major manufacturer expected to post an improvement.