U.S. auto sales hits 15 year low: more fuel-efficient cars needed

It looks as though the current price of a barrel of oil is now having a profound affect on U.S. auto sales, which have now hit a 15 year low. The rest of 2008 does not like it will be any better, now automakers are working hard to meet the demand for smaller fuel-efficient cars. So it now shows that the current credit crisis is not just causing problems for the housing market.

Many automakers in the U.S. are now cutting the production of trucks; they are now scrambling to increase production of fuel-efficient cars as it is these that are now showing more sales strength. Auto sales for North America are down 18.3 percent from June 2007, this is now the worst half year sales performance since 1993. Autodata Corp has released some data stating that U.S. consumers purchased just 7.41 million vehicles in the first half of 2008.

According to Freep, some automakers are having worse sales figures than others, Chrysler LLC is 35.9% down, Ford Motor Co. is down by 27.8%, and Toyota Motor Corp. is down by 21.4%. Also down is Nissan Motor Co. by 17.7% as well as General Motors Corp. who are down 18.2%.

However Honda Motor Co. has bucked the market by reporting a 1.1% sales increase; this is a result of their more affordable, fuel-efficient vehicles.

It is not just in the U.S that people are wanting more fuel-efficient cars, in the UK they have to pay £5.40 a liter, that about $10.69. Also they are being taxed for having larger cars, so more people want to sell their larger cars and swap them for smaller cars.