China tops auto sales as US plunges in January

CHINA is reported to have knocked the US from top spot in motor vehicle sales in January after American new-vehicle volumes plummeted 37 per cent year on year to the lowest monthly tally in 27 years.

While recession-hit US new-car dealers shifted 656,881 vehicles in January – down from more than one million units in January last year – China sold an estimated 790,000 vehicles, according to Automotive News.

It is the first time in history that China has outsold the US, but it is not expected to be the last, with many industry-watchers estimating that the Asian giant will sell more than 10 million vehicles this year – about one million more than the US.

Predictably, the Big Three manufacturers in the US suffered more than most in January, with General Motors down 48.9 per cent compared with the same month last year, Chrysler down 54.8 per cent and Ford down 41.6 per cent.

Excluding Dodge and and Jeep, the Chrysler nameplate was down a massive 68.9 per cent, underlining the pressing urgency of US government aid for the US industry.

Japanese transplants in the US – Toyota, Honda and Nissan – shared the pain, although not to the same extent. Toyota was down 37.8 per cent, Honda slipped 28 per cent and Nissan took a 30 per cent hit.

The only companies to score a win were Hyundai and Subaru, which both climbed about eight per cent.

Adding to Ford’s troubles was the performance of Volvo, which sold almost 64 per cent fewer cars in the US for the month.

Recession-wary US companies kept their cheque books closed in January, with fleet sales down an estimated 65 per cent.

In fresh efforts to reverse the slump, the U.S. Senate approved a bill to permit tax deductions on vehicle purchase loan interest and sales taxes.

The proposal, championed by the National Automobile Dealers Association, was added to an economic stimulus bill under debate in the Senate. The vote was 71-26.

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