Credit Crunch hits Ford Sales

[Cheekg98]

Ford sales plunge Auto maker says credit squeeze, customer worries led to 35% drop in sales -- much worse than expected. By Chris Isidore, CNNMoney.com senior writer October 1, 2008: 12:11 PM ET

Ford said the credit squeeze led to a 34% drop in sales in September, much worse than even pessimistic industry forecasts.

NEW YORK -- Sales at Ford Motor Co. plunged in September as lower gasoline prices were not enough to overcome tighter credit for buyers and dealers during the month.

Ford (F, Fortune 500) reported that U.S. sales tumbled 35% from a year earlier. Sales tracker Edmunds.com had forecast a 25% drop in sales in the period.

Overall industry sales are expected to fall 20% from year-ago levels. Experts said many consumers were apparently reluctant to make big ticket purchases at a time of economic upheaval.

And for those who wanted to buy a car, some were unable to get a loan as the credit markets tightened during the mounting crisis on Wall Street.

In addition to auto loans being more difficult to get, a growing number of dealerships also have been hit by the credit crunch and have found it increasingly difficult to get the cash they need to do business.

"Consumers and businesses are in a very fragile place," said Jim Farley, Ford group vice president. "An already weak economy compounded by very tight credit conditions has created an atmosphere of caution."

The other automakers are due to report later in the day. General Motors (GM, Fortune 500), the nation's largest automaker, is expected to report that sales fell 24% while Chrysler LLC sales are forecast to drop by 37%.

But it's not just U.S. automakers that are being hit by the credit squeeze. Toyota Motor (TM), Honda Motor (HMC) and Nissan (NSANY) are expected to post steep declines in U.S. sales as well.

[Silver_blade]

Credit crunch has also hit the other manufacturers eg. GM, Toyota, etc....In fact, everything will be affected.

[Cheekg98]

GM not too bad ... GM says September sales drop 16%

Edited October 1, 2008 by Cheekg98